ACTION REQUESTED:
Title
Communication from the City Manager with a Request to ADOPT an ORDINANCE Approving the PERSIMMON LOFTS, LLC REDEVELOPMENT AGREEMENT. (1st District)
Body
BACKGROUND: Persimmon Lofts, LLC has acquired the property at 1028 SW Adams, a four-story historic building in the Warehouse District that once housed the Fleming Potter Company. The developer, a local team lead by Trevor Holmes, plans to convert the building into a mix of uses: 44 residential units (studio and one bedroom) on all four floors and approximately 1400 square feet of commercial/retail space on the first floor. The total private investment is approximately $4,800,000.
The attached Redevelopment Agreement is the City’s standard agreement that pledges 50% of any future incremental property taxes as a rebate to reimburse eligible redevelopment costs.
FINANCIAL IMPACT: The Redevelopment Agreement pledges 50% of any incremental taxes generated as a rebate to the developer through the end of the Warehouse District TIF (2030). In 2014, the property’s Equalized Assessed Value was $50,130, generating $4,614.64 in taxes in 2015. An investment of this level in the property should considerably increase its value and resulting taxes. The City retains 50% of these increased taxes for use within the Warehouse District TIF.
NEIGHBORHOOD CONCERNS: Redevelopment of the Warehouse 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 delayed or cancelled.
ALTERNATIVES: None recommended.
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