R2017-143 Authorizing Amendment to Agreement between the City of Decatur and MDA Properties LLC

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12/1/2017 Item Coversheet Tn City Manager DATE: 11/27/2017 MEMO: TO: Honorable Mayor Julie Moore Wolfe and Members of the Decatur City Council FROM: Tim Gleason,City Manager Billy Tyus,Deputy City Manager SUBJECT: Resolution Authorizing Amendment to the Agreement with MDA Properties to Redevelop the 100 Block of West Main St.,the 100 Block of West Wood St.,the 100 Block of South Church St. and the 200 Block of South Church St. SUMMARY RECOMMENDATION: Staff recommends approval of the attached resolution authorizing an amendment to the agreement dated April 17,2017 with MDA Properties LLC to extend the deadline for the redevelopment of properties in the Downtown Central Business District. BACKGROUND: The City entered into the subject agreement in April 2017 and since that time MDA Properties has already made significant investment in the property covered by the agreement.The agreement called for MDA to provide five residential units on site,to complete environmental testing and remediation and complete demolition of the east center section of the premises at 142 W. Wood St.,to make repairs to a retaining wall on public property and to complete sidewalk repairs and add parking along S. Church Street. Demolition is complete and testing is scheduled for the east center section. Engineers have also been engaged to determine a final grade plan for the demolition area. In the 200 S.Church Street block the wall in the public domain has been replaced and a new sidewalk installed from Wood to Washington Street. Property improvements were also done in conjunction with the public work. In the 100 S. Church Street block,the sidewalk repairs and on-street parking realignment are complete except for at the corner of W.Main and S. Church. The main work remaining to be done in that area is the installation of pavers to extend the streetscape look into the large curb area that was created. The pavers are being ordered and will be installed upon delivery. MDA has also completed the renovation of street level spaces and opened a new Debbie's Dance Studio on site.A new steakhouse, R Bar and Grille,will open December 1st. In submitting plans and obtaining permits for the five residential units,the developer realized that adding a sixth residential unit would be better for the project and would add additional much-needed downtown housing.In addition to our agreement,the developer has submitted plans and received permits to revitalize street level commercial spaces along West Wood with 2 additional residential units on the building's second story. MDA is requesting an extension of the completion date from December 31,2017 to August 31,2018 to accommodate the additional work. As per terms of the agreement,MDA agreed to complete work valued at more than$2 million to redevelop properties in the blocks listed above and to expend an additional estimated$302,000 for public infrastructure improvements. The work is being done without additional incentive and in exchange for the release of a lien on property located at 101 S.Main St.placed with a previous property owner.On April 7, 1998 the city entered into an agreement with the now-defunct Real Estate Investors of Decatur,the previous owner of the property located at 101 S.Main St.,to provide Section 108 funding not to exceed$1.4 million to redevelop the site.The Section 108 program is designed to spur private economic activity among other goals and as part of the agreement the city placed a lien on the property to ensure development.MDA Properties-the current owners-have since carried out development on site since the company took ownership in 2003,making substantial investment and increasing the value of the property https://decatur.novusagenda.com/AgendaWeb/CoverSheet.aspx?Item ID=1341 1/2