ACTION REQUESTED:
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Communication from the City Manager with a Request to ADOPT an ORDINANCE Approving the BLACK BAND LLC REDEVELOPMENT AGREEMENT. (Council District 1)
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BACKGROUND: Chris Ober (Redeveloper), owner of BLACK BAND LLC is seeking to redevelop 1000 SW Adams Street. The property is currently vacant and consists of two buildings with over 14,000 sf of floor space on 0.44 acres. Mr. Ober purchased the building in 2017 with plans to open a distillery. He recognizes that Peoria, back in the early 1930, was the Whiskey Capital of the nation and wanted to be the first to bring a distillery along with a restaurant, and small retail operation to the Warehouse District. Based on his visits to other distillery’s he believes BLACK BAND DISTILLERY will be a big attraction and draw many people and tourist to downtown.
The total project cost is $3.8 million which includes $2.9 million in construction and $900,000 in production equipment. The building use will result in: a) 7,487 square feet for production operation, b) 3,731 square feet restaurant along with an outdoor patio of 3,300 square feet, and c) 340 square feet for retail. The resulting square footage would be less than original since floor space would need to be cut out to make room for distillery equipment. Several renderings of the facility are provided in Schedule 1. The entire business would create a total of 30 full and part-time jobs, and retail sales over $1.0 million are estimated.
FINANCIAL IMPACT: BLACK BAND LLC has presented their financials and have requested City assistance. Upon staff review and several rounds of discussion related to their business operation and their redevelopment costs (lead abatement and fire suppression) the reimbursement of Project TIF Increment was reached and presented herein for Council Approval. As shown on Schedule 1, the Total TIF Eligible Cost for this Project is nearly $2.8 million. The proposed total rebate to Developer, as shown in Schedule 3, is estimated at $162,853 (or 5.8% of the total $2.8 million project) with the following payments: a) $65,000 in 2020 after project completion, and b) 60% annually reimbursements over the next six (6) years from 2021 to 2026. In addition, Mr. Ober will be submitting an application for a Façade Improvement Grant of $5,000 to be approved at a later date. City staff reviewed the Project financials and agree this level of incentive, is warranted based on projected business financials; and constructions costs and quotes presented for lead abatement and fire suppression.
NEIGHBORHOOD CONCERNS: Redevelopment of buildings in the Warehouse District is a widely held community goal.
IMPACT IF APPROVED: The Redevelopment Agreement will be approved and the project will proceed adding more jobs and tourism to Downtown Peoria.
IMPACT IF DENIED: The Redevelopment Agreement will not be approved and the project may be delayed or cancelled.
ALTERNATIVES: Council could direct staff to adjust the terms of the Redevelopment Agreement.
EEO CERTIFICATION NUMBER: To be made available and part of RDA.
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