ACTION REQUESTED:
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Communication from the City Manager with a Request to ADOPT an ORDINANCE Approving the MP STREET PROPERTY LLC REDEVELOPMENT AGREEMENT. (Council District 1)
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BACKGROUND: MP Street Property LLC is seeking to renovate the property at 701 Main (corner of Main and Perry), a three-story building in downtown Peoria and in the Hospitality Improvement Zone TIF. MP Street Property is a development entity owned by local developer Kert Huber. Mr. Huber intends to completely renovate the property into the "Marquette Apartments," a mixed-use building that includes 28 residential units on the second and third floors plus approximately 11,000 square feet of leasable commercial space on the ground floor. Mr. Huber has submitted an application to have the building placed on the National Register of Historic Places. In total, the investment in the property will be nearly $2.2 million.
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: Staff estimates that upon completion, the property taxes will increase by approximately $35,000. The Redevelopment Agreement pledges 50% of any incremental taxes generated as a rebate to the developer through the end of the Hospitality Improvement Zone TIF, or about $17,500 per year. Through the end of the TIF, the developer would be rebated approximately $227,000 in exchange for the current investment of $2.2 million. The City retains the other 50% of these increased taxes for use within the Hospitality Improvement Zone TIF.
NEIGHBORHOOD CONCERNS: Redevelopment of Downtown, especially the creation of more residential units, 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 ...
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