ACTION REQUESTED:
Title
Communication from the City Manager with a Request for the Following:
A. ADOPT an ORDINANCE Amending the City of Peoria BUDGET for Fiscal Year 2014 Relating to the Use of WAREHOUSE DISTRICT TIF Fund Balance for the REDEVELOPMENT AGREEMENT with LAVILLE DE MAILLET, LLC for a Project at 826 SW ADAMS, in the Amount of $40,000.00 (Requires 2/3 Affirmative Votes of Those Voting);
B. AMEND the REDEVELOPMENT AGREEMENT Between the City of Peoria and LAVILLE DE MAILLET, LLC for the Redevelopment of a Property Located Within the Warehouse District TIF at 826 SW ADAMS. (District 1)
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BACKGROUND: On March 12, 2013, the City Council approved a redevelopment agreement with LaVille de Maille, LLC and its owner, Dennis Slape. The agreement outlined a project that included the acquisition and renovation of 826 SW Adams Street. This property was formerly the YWCA homeless drop-in center. The first floor of the two-story building is now occupied by Sugar, a pizza restaurant.
Mr. Slape has the opportunity to secure a tenant for the upstairs space. StartUp Peoria, a local nonprofit organization that inspires, collaborates with and mentors small businesses, would like to open "The Nest" in that location. The Nest would be co-working and education space for entrepreneurs. As an office use above a restaurant, the building code requires the restaurant space to be fire sprinkled. Based on a quote from a local firm, the cost of installation is likely to approach $40,000.
The original Redevelopment Agreement outlined an incentive whereby Mr. Slape would be rebated 50% of any incremental property taxes generated by the project until 2030 (the end of the TIF). Given the cost of this installation and the desire to see StartUp Peoria occupy the second floor, the proposed amendment would reimburse Mr. Slape for the cost of installation upon invoicing. The City would recuperate this upfront outlay by withholding the developer share of fu...
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