ACTION REQUESTED:
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Communication from the City Manager with a Request to ADOPT an ORDINANCE Approving the CMT REAL ESTATE COMPANY REDEVELOPMENT AGREEMENT. (1st District)
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BACKGROUND: CMT Real Estate Company is seeking to purchase the property at 203 Harrison, a two-story building in downtown Peoria and in the Warehouse District TIF. CMT Real Estate Company is a subsidiary of CMT Companies which also operates Crawford, Murphy and Tilly, a professional engineering firm with thirteen offices spread across five states. CMT has served Peoria from a leased office on Water Street since 1999. The company intends to purchase the building at 203 Harrison Street from the Peoria Art Guild and renovate the second floor to become the offices of their Peoria staff. The new, larger space will allow the company to grow their Peoria operation. They will provide a rent-free lease to the Peoria Art Guild for offices on the first floor and art studio space in the basement. CMT will also seek other tenants for remaining space on the first floor. First floor renovations will be made as necessary for tenant needs. The company intends to make external improvements such as painting, window repair, and tuck pointing. In total, the investment in the property will be nearly $1 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: The Redevelopment Agreement pledges 50% of any incremental taxes generated as a rebate to the developer through the end of the Warehouse District TIF. The current property owner is the Peoria Art Guild, a non-profit organization that does not pay property taxes. However, when the Warehouse District was created in 2007, the subject property had a "base" taxable value of $37,200. The developer will only receive a rebate of 50% of taxes generated from value above this base amoun...
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