ACTION REQUESTED:
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Communication from the City Manager with a Request to ADOPT an ORDINANCE Amending Ordinance 17,628 Approving the 725 WASHINGTON LLC REDEVELOPMENT AGREEMENT. (Council District 1)
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BACKGROUND:
RDA Amendment Request
Larry Winkler (Redeveloper) is requesting an amendment to his Redevelopment Agreement (RDA) for 725 WASHINGTON LLC approved by Council November 13, 2018 (Agenda Item 18-339). His concept plan for "Winkler Place" at 709 to 725 SW Washington has been adjusted in favor of more residential and less commercial. The revised concept includes the addition of nine (9) additional residential units on the first floor in place or instead of 9,500 sf of commercial space. In total, the revised concept includes 35 residential units and 8,500 sf of commercial space, rather than 26 units and 18,000 sf of commercial space in the original plan. The overall cost redevelopment would increase from $3.94 million to $4.20 million, or an increase of 6.5%. The proposed financing has change to include historical tax credits. The amendments to the RDA (attached) include: a) revised language of Section 2.1 and 2.2.2; and b) update of Schedule - 1 Project Cost. The original RDA is also attached
When the RDA was approved in November 2018, it was understood bank financing was contingent on securing a commercial lease of 6,000 sf. It was also understood a six-month extension could be provided if both the Redeveloper and City agreed it was merited. Rather than request an extension, the Redeveloper has proposed a revised and more financially, feasible concept plan to secure financing without the need of a large commercial lease. Over the past six (6) months, the Redeveloper has invested over $200,000 in demolition, preparation, tuck-pointing, and marketing his building to potential tenants. Having difficulty finding a suitable commercial tenant, the Redeveloper believes his best option is to revise his concept to obtain financing ...
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