ACTION REQUESTED:
Title
Communication from the City Manager and Economic Development Department with a Request to ADOPT an ORDINANCE Approving the FMB HOLDING, INC. REDEVELOPMENT AGREEMENT. (Council District 1)
Body
BACKGROUND: FMB HOLDING INC has recently purchased the property located at 330 SW Water for the purposes of redevelopment. 330 SW Water has been vacant and unrentable as a commercial property in part resulting from the costs associated with regulatory requirements associated with flood proofing of a property situated within the floodway. The requirements to obtain a certificate of occupancy for a property located within the floodway are more significant compared to properties located in the flood plain or not within the flood plain.
The costs associated with flood proofing this property are estimated to be approximately $68,000. The expenditure of this $68,000 is a prerequisite for receipt of a certificate of occupancy by any tenant. This agreement proposes the City of Peoria would enter into a redevelopment agreement with FMB Holding Inc to provide a reimbursement of costs associated with flood proofing for 330 SW Water Street property to reduce the costs associated with providing the necessary flood proofing in service of securing a tenant to lease this space and bring this property back into productive use.
FINANCIAL IMPACT: The Project currently generates approximately $13,000 in property tax. Upon completion of flood proofing, it is anticipated the property tax income would increase from occupancy of a tenant. In addition, 330 SW Water as an occupied location would likely produce retail sales tax from the ongoing operations of a commercial tenant. The commercial operation would support some number of jobs. Finally, there is also a non-financial benefit to the City of Peoria by continued development along the Peoria Riverfront. This continues the momentum of development in downtown as well as provides additional opportunities ...
Click here for full text