ACTION REQUESTED:
Title
Communication from the City Manager with a Request to ADOPT an ORDINANCE Approving the 101 LIBERTY STREET, LLC. REDEVELOPMENT AGREEMENT. (Council District 1)
Body
BACKGROUND: 101 Liberty Street LLC, was formed in June 2019 to fully redevelop the former Nailon Plumbing Supply building into Ardor Breads and Provisions. The building was originally built for Swift Premium Meats Cold Storage Warehouse in the 1890's, and the redevelopment will be constructed according to standards eligible for historical tax credits. The project is being redeveloped in two phases. The first was the establishment of the bakery shop which opened May 3, 2020 with Ardor Bakery occupying 1,700 sf. The second phase includes the full redevelopment of the entire building allowing Ardor to expand from 1,700 sf to approximately 6,375 sf by adding:
a) a restaurant, kitchen, and dining space;
b) an expanded bakery; and
c) event space and bar upstairs.
The project is expected to be completed in the Spring of 2022. Ardor bakery currently employs 5 full-time and 2 part-time employees. When the project is completed it is expected there will be 25 full-time and 34 part-time employees and Ardor bakery will have the capacity to expands sales of its bread and bakery products regionally and nationally.
The overall investment is estimated at $1.49 million, which includes the acquisition and build-out of phase 1 of $840,000, and the phase 2 buildout of $650,000. The project will be financed predominantly with personal equity of LLC members Dave Knaak and Larry Nailon, along with a bank line of credit. The total TIF-eligible cost is $1.49 million. A TIF reimbursement of $40,000 is being presented to cover unexpected cost overruns-sprinkling of basement, fire blocking installation due to insulation of cork, installation of shelter-in-place rooms, and an unusable basement due to flood zone regulations. This totals 2.7% of the total TIF-eligible expe...
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