ACTION REQUESTED:
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Communication from the City Manager with a Request to ADOPT an ORDINANCE Approving the CURIOUSNOMAD LLC REDEVELOPMENT AGREEMENT (807 SW ADAMS). (Council District 1)
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BACKGROUND: A purchase option has been secured by CURIOUSNOMAD LLC, to redevelop 807 SW Adams Street. Cliff Vieira, is planning to invest $486,000 to a) purchase the building, b) gut the interior; c) build out a commercial unit on the first floor consisting of 1,500 sf with a basement of 1,600 sf; d) develop the second floor into a modern loft style apartment 1,500 sf for rent; and e) improve the overall façade.
CRAFTED DIY STUDIO & BAR is planning to locate in the commercial space. It will be a startup business owned and operated by Jodie Vieira. The business will offer over 20 unique projects, all of the tools, materials and instructions to create handcrafted items. The space will be also be an event space where people can socialize and drink.
The project’s budget is estimated at $486,000 and will be financed with private equity of 24%, bank financing of 73%, and City incentives of 3%. The project represents only two income producing units as is characterized as a “small-scale development” project.
FINANCIAL IMPACT: Generally, developments in TIF districts are presented with a 50% reimbursement of incremental property taxes for the remaining life of the TIF, but can request more if they can demonstrate a need to close a financial gap.
The Redeveloper requested assistance from the City beyond the 50% reimbursement. Key obstacles cited includ the additional cost associated with new interior support beams and columns and the relocation of utilities away from the façade. City staff reviewed the project financials and agree that a gap does exists and warrants an annual TIF reimbursement of 75% the first 5 years, 50% the remaining years up to 2030; and a disbursement of $11,000 in 2020 to offset the cost of relocating the utilities.
NEIGHBORHOOD CONCERNS: Redevelopment of buildings in the Warehouse District is a widely held community goal. The handcraft, retail studio, and bar will be a welcome addition and bring additional life to the Warehouse District. The redevelopment of the façade and relocation of the utilities will transform the building and will enhance the overall visual appeal of the street.
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