ACTION REQUESTED:
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Communication from the City Manager with a Request to ADOPT an ORDINANCE Amending Ordinance 17,629 Approving the PEORIA 812 DEVELOPMENT LLC REDEVELOPMENT AGREEMENT. (Council District 1)
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BACKGROUND: The Council approved a Redevelopment Agreement (RDA) with Peoria 812 Development LLC (Developer), via ordinance 17,629 on November 13, 2018. The Project plan was to convert 812 SW Washington, a 7 story, 94,000 square foot, brick warehouse building with 14,000 sf. floor plates, into 124 market-rate apartment units, with no commercial units. Thereafter and upon application of Historic Tax Credits (HTC) the National Park Service ruled tax credits would only be available if the Project preserved the front 3,500 sf of the first floor for commercial use.
The Developer is requesting an amendment to the RDA since the original Project scope changed "significantly" as defined in Section 2.1 in: a) type of use, and b) line item cost greater than 25% individually or 10% cumulatively. Thus the amendment was necessary because: a) commercial use was added, b) an additional side lot to the northeast was acquired, c) the number of units increase from 124 to 126 residential units with a commercial addition, d) a reimbursement of $35,000 to Redeveloper was added to cover the cost of converting a City driveway into a sidewalk, and e) the overall Project budget increase from $21,552,841 to $25,263,337, or 17.2%.
These changes are incorporated into the attached Amending Ordinance which effectively updates the RDA to include the replacement of: a) page 6, and b) Schedules 1A, 1B, 2A, 2B, and 3.
FINANCIAL IMPACT: The economic impact of adding 126 market-rate apartments along with commercial space of 3,500 sf in the Warehouse District would support existing businesses, attract new ones to downtown, and would add addition jobs and tax revenues to the City. Preliminary estimates show the City's share of Project revenue from TIF increment and parking fee...
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