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Economic&Coxrnrnaiuty Development
<br /> DATE: 6/3/2019
<br /> MEMO: No. 19-34
<br /> TO: Honorable Mayor Julie Moore Wolfe and City Council
<br /> FROM: Scot Wrighton,City Manager
<br /> Raymond Lai,Director of Economic and Commuiuty Development
<br /> Tim Dudley,Development&Revitalization Specialist
<br /> SUBJECT: Resolution Authorizing 3rd Amendment to the Agreement with MDA Properties,LLC to redevelop the 100 Block
<br /> 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.
<br /> SUMMARY RECOMMENDATION:
<br /> Staff recorrmiends approval of the attached resolution authorizing a 3rd amendment to the agreement dated April 17,2017 with
<br /> MDA Properties,LLC to extend the deadline for the redevelopment of properties in the Downtown Central Business District
<br /> until May 31,2020.
<br /> BACKGROUND:
<br /> MDA Properties,LLC has made significant progress in revitalizing and redeveloping the block bounded by Main Street,Church
<br /> St. and Wood St. and adjacent areas since entering into an agreement with the City to do so in Apri12017. The agreement as
<br /> amended subsequerrtly for extension of time called for MDA to build a min;rrn,m of five residential units(to date,7 are
<br /> completed with an 8�'under construction),to complete environmental testing,remediarion and demolition of the east center
<br /> section of the premises at 142 W. Wood St.,to repair a retaining wall on public property,to complete sidewalk repairs and add
<br /> parking along South Church Street and repave an alley in the area by May 31,2019. To date,MDA has completed a majority of
<br /> the projects required in the agreement and only needs to complete environmental remediation,consriuction of a retaining wall,and
<br /> the paving of the alley to satisfy the agreement.
<br /> MDA is working with the IEPA and eapects that remediation will occur yet this year,however,the timing of the work could delay
<br /> construction of the retaining wall and the alley repaving until next year's construction season. The company may not be able to
<br /> get asphalt for the alley until the beginning of the 2020 season because it is already well into this year's construcrion season.
<br /> MDA is requesting an extension of the completion date from May 31,2019 to May 31,2020 to accommodate the additional
<br /> work.
<br /> As per terxns of the original agreement,MDA agreed to complete work valued at more than$2 million to redevelop properties in
<br /> the blocks listed above and to e�end an additional estimated$302,000 for public infrastructure improvements. The work is
<br /> being done without additional incentive and in exchange for the release of a lien on property located at 101 S. Main St.placed
<br /> with a previous property owner. On April 7, 1998,the city entered into an agreement with the now-defunct Real Estate Investors
<br /> of Decatur,the previous owner of the property located at 101 S. Main St.,to provide Section 108 funding not to exceed$1.4
<br /> million to redevelop the site. The Section 108 program is designed to spur private economic activity among other goals and as
<br /> part of the agreement the city placed a lien on the property to ensure development. MDA Properties-the current owners-have
<br /> since carried out developmeirt on site since the company took ownership in 2003,making substantial investment and increasing
<br /> the value ofthe property.
<br /> Outside of this agreement MDA has also added additional private investment;R Bar and Grill opened in December 2017,the
<br /> new Debbie's Dance Studio was added and to what was an underutilized,partially vacant space.
<br /> PRIOR COUNCIL ACTION: Council approved the original agreement in Apri12017,first amended on December 4,2017,
<br /> and second amended on July 16,2018,to allow additional time for environmental remediation and construction required.
<br /> POTENTIAL OBJECTIONS: None
<br /> STAFF REFERENCE: Scot Wrighton,City Manager at wrighton@decaturil.gov or 217-424-2801,Raymond Lai,Director of
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