ACTION REQUESTED:
Title
Communication from the City Manager with a Request for the Following:
A. APPROVE a Loan from the City's REVOLVING LOAN FUND to WD COMMUNITY INVESTMENT, LLC and to Authorize the City Manager to Execute the Necessary Documents; and,
B. APPROVE the FIRST AMENDMENT to the WD COMMUNITY INVESTMENT LLC REDEVELOPMENT AGREEMENT. (Council District 1)
Body
BACKGROUND: On October 13, 2015 the City Council approved a redevelopment agreement with WD Community Investment, a development company co-owned by Jacob and Rainy Shorey (Item 15-399). The Shoreys intend to renovate 214 Pecan, a 3-story building in the Warehouse District, into a mixed use project consisting of residential and commercial space. The agreement provided a loan of $250,000 to help bridge a gap in financing for the project. The loan was structured as an advance of the 50% of TIF increment that would traditionally be rebated to the developers over the remainder of the TIF. The advance/loan was to be repaid at 4% interest by withholding the developer's share of increment.
Since the agreement was signed, the Shoreys have continued to work towards their vision for the project. Construction bids for the renovation came in considerably higher than budgeted, forcing the developers to restructure the project's financing. On a positive note, however, they were also able to secure a commercial tenant in One Fire Media Group, Inc. to occupy the entire first floor of the building. One Fire is a provider of digital innovation services and is located at the Peoria Next Innovation Center at 801 W. Main Street. The company started in 2012 with 3 employees and one customer and have grown to 31 employees with a diversified customer base. In their current location, One Fire employees operate in various offices on different floors. At 214 Pecan, all of their employees will have a common office space with room for growth. They have signed a letter of intent to lease 5,984 sf for ...
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