ACTION REQUESTED:
Title
Communication from the City Manager with a Request for the Following:
A. ADOPT an ORDINANCE Approving the EPIC PEORIA LLC and MIDWEST CLIMBING AND FITNESS LLC REDEVELOPMENT AGREEMENT.
B. ADOPT an ORDINANCE Amending the City of Peoria 2016/2017 BIENNIAL BUDGET Relating to the Use of the Warehouse District TIF Fund Balance. (Council District 1)
Body
BACKGROUND: EPIC Peoria LLC (property owner) and Midwest Climbing and Fitness LLC (business operator) are, collectively, a group of local investors who are seeking to convert a portion property at 927 SW Washington into an indoor climbing gymnasium. They intend to subdivide and purchase the northeastern half a property owned by Haggerty Industrial Supply. The southwestern portion was recently renovated by Haggerty and serves as their showroom and retail operation. The group will renovate and expand the current 13,000 square foot building with a tower addition in the rear that will bring the total square footage to approximately 19,000 square feet. The business will focus on indoor rock climbing and bouldering, but will also include traditional fitness equipment, fitness classes and a small retail area. Indoor climbing gyms is a growing business model and have become very popular. The closest operation to Peoria is in Bloomington, IL. The investment group and City staff have been working on this project for over a year and a half. The developer has investigated a number of sites in Peoria and elsewhere in the region and have determined this location in the Warehouse District best meets their needs. They have worked diligently to arrange financing.
The total project cost is approximately $3.8 million. It is financed through a mix of sources, including a conventional bank loan, owner equity, private investment dollars and equity generated from historic tax credits. City staff have reviewed the project financials and there is still a gap of $360,000. To address this gap, City sta...
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