ACTION REQUESTED:
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Communication from the City Manager, Finance Director, and Economic Development Department with a Request to ADOPT an ORDINANCE Amending the City of Peoria 2021 REVISED ANNUAL BUDGET in the Amount of $100,000.00, to Provide Required Maintenance, Remediation, Repairs, and Renovations at 418 SW WATER STREET.
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BACKGROUND: In 2020, the Wisdom Development Corporation donated the Hooters restaurant building at 418 SW Water to the City. Since that time, staff has been seeking a tenant for the restaurant. Inspection of the property during the solicitation of proposals process identified the necessary work to secure a qualified tenant. The work identified during this process would require expenditures of dollars not previously allocated in the budget and would therefore require an amendment to the 2021 Budget in the amount of $100,000. The work is a necessary pre-requisite for tenant attraction and lease for this location.
FINANCIAL IMPACT: Funds in the amount requested in the budget amendment of $100,000 will be used to perform work required to secure a qualified tenant. The total amount requested would be recaptured by adding an additional ($.36) to the base lease rate. This nominal amount would not negatively impact the competitiveness of the lease rate requirements. The lease of this space would convert currently vacant space owned by the City of Peoria into revenue producing property for the City of Peoria. The City of Peoria would seek to recapture the cost of this expenditure from rental income.
NEIGHBORHOOD CONCERNS: There are no neighborhood concerns.
IMPACT IF APPROVED: City would receive additional income from existing property that is currently not generating any income.
IMPACT IF DENIED: The City would continue to provide the required maintenance and upkeep to the property without any offsetting income to cover any ongoing costs.
ALTERNATIVES: None
EEO CERTIFICATION NUMBER:
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