ACTION REQUESTED:
Title
Communication from the City Manager with a Request to ADOPT an ORDINANCE Approving the FOSTER WAITE PROPERTIES, LLC. REDEVELOPMENT AGREEMENT. (1st District)
Body
BACKGROUND:
Foster Waite Properties LLC has purchased a four-story office building at 410 Fayette, a property in the East Village Growth Cell TIF. In addition to the $1.2 million cost of acquisition, the developer has invested approximately $450,000 to renovate the first three floors to become the home of Northwestern Mutual. The relocation of Northwestern Mutual to this building will bring 40 full time employees and 20 summer interns to downtown. The developer is also planning a "Phase 2" renovation to complete about $190,000 worth of work on the fourth floor to make it available to a commercial office tenant. The attached redevelopment agreement pledges 50% of incremental property tax as a rebate only after the fourth floor is completely renovated. Of note, the property has a current (2014) Equalized Assessed Value (EAV) of $251,470. This value is below "Base EAV" in 2010 of $260,100. No tax increment will be generated, nor rebated, until Phase 2 is completed and the EAV exceeds this base amount.
FINANCIAL IMPACT: If Phase 2 is completed, the developer will be rebated 50% of any property tax associated with value above $260,100.
NEIGHBORHOOD CONCERNS: Not applicable.
IMPACT IF APPROVED: The Redevelopment Agreement will be approved and the project will proceed.
IMPACT IF DENIED: The Redevelopment Agreement will not be approved and the project's future would be in doubt.
ALTERNATIVES: None.
EEO CERTIFICATION NUMBER: Not applicable.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria: Businesses, Jobs, and Population
2. Vibrant Downtown: Riverfront/ Central Business District/ Warehouse District
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHE...
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