ACTION REQUESTED:
TITLE
Communication from the City Manager with a Request to ADOPT an ORDINANCE Approving the PROJECT 812 DEVELOPMENT LLC REDEVELOPMENT AGREEMENT. (Council District 1)
BODY
BACKGROUND: Peoria 812 Development LLC, a development team from Chicago led by David Dubin and Naganathan Guru, is seeking to redevelop 812 SW Washington (Project 812). The Project consists of converting a 7 story, approximately 94,000 square foot, brick warehouse (14,000 sf. floor plates) building into 124 market rate apartment units. The building was formerly known as the "Churchill Drug Company" building, and is currently a certified historic structure and listed individually on the National Register of Historic Places. It is currently known as the "Builders Warehouse" building.
The Developers, Dubin & Guru, have been working collaboratively for over 18 years, and developed over 25 projects predominantly in Chicago but also in Evanston, IL and Duluth, MN. Developments were primarily mixed-used and have ranged from $3.0 to $53 million. Most notably the Shoemaker Lofts (175 units) and Shops of Shoemaker Square (30,000 sf) in Chicago received a Landmark Award for Preservation excellence from the City of Chicago in 2008. With respect to Project 812, the Developer has been in communication with the City since January of 2014, when they secured a purchase agreement on the property.
Project 812 represents the largest redevelopment project in the Warehouse District with 124 residential units at a project cost of over $21 million, of which $17.7 million (83%) would be a TIF eligible expense. The proposed financing for Project 812 will include debt and equity split of 50% each. Of the equity portion the Developer plans to secure Federal and State Historical Tax Credits in the amount of $7.3 million, representing 34% of the entire project cost. The 124 market rate units will consist of a mixture of studios, 1 and 2 bedroom units, with the majority being 1-...
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