ACTION REQUESTED:
Title
Communication from the City Manager with a Request to:
A. ADOPT an ORDINANCE Approving the UNION DEPOT, LLC REDEVELOPMENT AGREEMENT. (1st District)
B. ADOPT an ORDINANCE Amending the City of Peoria 2016/2017 Biennial Budget Relating to the Use of the Warehouse District TIF Fund Balance.
Body
BACKGROUND: Union Depot, LLC has acquired the property at 803-805 SW Adams, a two-story historic building in the Warehouse District. The developers, locals Jon and Angela Walker, plan to convert the building into a mix of uses in three phases:
* Phase 1: 2,000 square feet of commercial retail space on the first floor of 803 SW Adams;
* Phase 2: 1,500 square feet of commercial retail space in 805 SW Adams; and,
* Phase 3: 2,400 square feet of residential development on the second floor of 805 SW Adams.
They have already secured a tenant, Zion Coffee Bar, for Phase 1. Union Depot, LLC is investing over $420,000 in Phase 1, including the property acquisition and renovation. Phases 2 and 3 are planned for the near future.
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. In order to accommodate the redevelopment, the City will need to do some work in the right-of-way, including the relocation of an electrical transformer on the Oak Street sidewalk. The City will advance the funds for this work but the developer will be responsible for 50% of the cost. The Redevelopment Agreement provides that the developers share of these costs will be withheld from property tax increment rebate.
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 but only after the developers share of the public infrastructure work is repaid. The infrastructure work is estimated at $13,000. Fund...
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