ACTION REQUESTED:
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Communication from the City Manager with a Request to Adopt the Following:
A. An ORDINANCE Approving the MECHANICAL RUBBER & SUPPLY CO. REDEVELOPMENT AGREEMENT (1st District).
B. An ORDINANCE Amending the City of Peoria BUDGET for FISCAL YEAR 2015 Relating to the Use of the Warehouse District TIF Fund Balance for the Redevelopment Agreement with MECHANICAL RUBBER & SUPPLY CO. in the Amount of $75,000.
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BACKGROUND: Mechanical Rubber & Supply Co. owns an entire block of property within the Warehouse District, bounded by Water, Walnut, Washington and the Bob Michel Bridge. The property includes a large surface parking lot and two buildings, the larger of which is a four story, approximately 80,000 square foot historic structure often referred to as the "Murray Building." Over the years, the building has been home to a variety of uses. Currently, the building is about half vacant. Some offices and artist studios are in place on the third and fourth floors. The second floor is completely vacant. The first floor has two small retail operations.
In 2014, the building owner's chief representative, Brian Murray, began working to renovate a large section of the first floor to accommodate a major retail tenant: the John S. Rhodell Brewery. Both entities have invested considerable funds to create this new space. To date, the building owner has spent or contracted for approximately $325,000 to carve out the retail space, improve some of the building's systems and create new common areas including new first floor restrooms. The brewery's owner, Mark Johnstone, has spent or contracted for approximately $340,000 to finish the retail space and create the business (exclusive of brewing equipment).
Since the project's outset, the building and business owners have worked with City staff to examine life safety issues within the building. While a majority of the costs have been included in the project, an issue has arisen r...
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