ACTION REQUESTED:
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Communication from the City Manager and Economic Development Department with a Request to ADOPT an ORDINANCE Approving the FMB HOLDING, INC. REDEVELOPMENT AGREEMENT. (Council District 1)
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BACKGROUND: FMB HOLDING INC has recently purchased the property located at 330 SW Water for the purposes of redevelopment. 330 SW Water has been vacant and unrentable as a commercial property in part resulting from the costs associated with regulatory requirements associated with flood proofing of a property situated within the floodway. The requirements to obtain a certificate of occupancy for a property located within the floodway are more significant compared to properties located in the flood plain or not within the flood plain.
The costs associated with flood proofing this property are estimated to be approximately $68,000. The expenditure of this $68,000 is a prerequisite for receipt of a certificate of occupancy by any tenant. This agreement proposes the City of Peoria would enter into a redevelopment agreement with FMB Holding Inc to provide a reimbursement of costs associated with flood proofing for 330 SW Water Street property to reduce the costs associated with providing the necessary flood proofing in service of securing a tenant to lease this space and bring this property back into productive use.
FINANCIAL IMPACT: The Project currently generates approximately $13,000 in property tax. Upon completion of flood proofing, it is anticipated the property tax income would increase from occupancy of a tenant. In addition, 330 SW Water as an occupied location would likely produce retail sales tax from the ongoing operations of a commercial tenant. The commercial operation would support some number of jobs. Finally, there is also a non-financial benefit to the City of Peoria by continued development along the Peoria Riverfront. This continues the momentum of development in downtown as well as provides additional opportunities for individuals to visit the Peoria riverfront which contributes to the vibrancy of the downtown and specifically to the vibrancy of the riverfront.
The TIF reimbursement assistance of up to $40,000 and additional equity from FMB Holding Inc would provide the necessary funding to provide the flood proofing needed to meet the regulatory requirement. The reimbursement would need to be obligated before end of 2021 and paid out subject to regulatory acceptance of the flood proofing efforts as determined Peoria code enforcement staff prior to end of 2022.
The Central Business District (CBD) TIF is set to expire December 31, 2021 with final payments to be made by Dec 31, 2022. It is estimated $80,000 is currently unobligated within the CBD-TIF, and available to provide TIF reimbursement assistance for this project. Any unobligated funds remaining in the CBD-TIF by Dec 31, 2021 would need to be distributed on a pro rata basis to each taxing body.
NEIGHBORHOOD CONCERNS: Redevelopment of buildings in the Central Business District is a widely held community goal.
IMPACT IF APPROVED: The Redevelopment Agreement will be approved, and the project will proceed.
IMPACT IF DENIED: The Redevelopment Agreement will not be approved, and the project may be curtailed or delayed.
ALTERNATIVES: Council could direct staff to adjust the terms of the Redevelopment Agreement.
EEO CERTIFICATION NUMBER: Not applicable.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Vibrant Downtown: Riverfront/ Central Business District/ Warehouse District
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
DEPARTMENT: City Manager's Office