ACTION REQUESTED:
Title
Communication from the City Manager with a Request to Approve the FIRST AMENDMENT to the SULLIVAN/HUNT REDEVELOPMENT AGREEMENT. (District 1)
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BACKGROUND: Pat Sullivan and John Hunt (collectively J.P. Companies) own the Sealtest building at 736 SW Washington in the Warehouse District. The building is approximately 33% renovated and houses offices for Comcast, IWIRC and Extended Pharmacy. They are now working to complete the renovation of the remainder of the building. They have signed letters of intent for leases and sales with a number of entities, including a restaurant and a number of residential condominium owners. They have been working with Central Illinois Bank (CIB) on a financing package that would refinance existing debt on their projects as well as provide a $2 million construction loan to complete the Sealtest project.
As part of the package, CIB is requiring the developer to place $300,000 in an escrow account, which will be held by CIB, to serve as a contingency fund for debt repayment. The developers have asked the City to assist with the creation of that escrow account by providing an advance on funds owed through the "Sullivan/Hunt Redevelopment Agreement." In July 2000, the City entered into a redevelopment agreement with JP Riverfront, LLC (a partnership of Pat Sullivan and John Hunt) regarding development along Water Street. That agreement outlined a number of issues regarding land transferred in order to construct the parking deck for 401 SW Water and acquisition of property to construct the parking lot that serves Le Vieux Carre. One provision stipulates that the City rebates to the developer all of the City's portion of real estate and sales taxes generated by the "Vieux Carre Project" (619 SW Water and 100-114 State); the "Development Pad" (now ELM's office building at 60 State), the "Barrel Vault Property" (now Water Street Solutions at 601 SW Water); and the "Old Sealtest Property" (736 SW...
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