R2022-160 Resolution Authorizing Redevelopment Agreement with CCI Properties LLC

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DATE: October 3, 2022 TO: Mayor Julie Moore Wolfe& Decatur City Council Members FROM: Scot Wrighton,City Manager Jon Kindseth, Deputy City Manager RE: Redevelopment Agreement with CCI Redi-mix The City of Decatur was approached by CCI Redi-mix seeking an incentive deal to beat or meet an offer from a suburban community. The City likely would not have provided an incentive package for this type of project, but we do have concerns about losing this business to a neighboring jurisdiction and shrinking our sales tax revenue from concrete sales in Decatur. We currently have 2 concrete plants in Decatur, and this will be our 31d. Incidentally they are all in the same area, off N. Martin Luther King Dr. Due to the factors mentioned, staff believes an incentive is warranted for this new Redi-mix company. With all of the major industrial project recently announced,we will need a lot of concrete in Decatur,and we would like it all to be made here in our community. Attached there is a draft of the proposed Redevelopment Agreement with CCI Redi-mix. Staff is seeking authorization to execute this agreement pending legal review and satisfaction from both parties. The framework and the incentives offered under this agreement are set and would not change after Council approval, but finer details and legal language is still being reviewed and suggested by legal. The urgency behind bringing this forward now is the desire to get the new water line constructed and operational before winter, despite known supply and labor issues. There is already an executed contract with Burdick subject to Council approval of this RDA, so work would start immediately. The City should realize significant new sales tax revenue from this 31 concrete plant, particularly if it serves a much broader service area than just Decatur or Macon County. We also believe that this will help to lower the cost of concrete in Decatur at a time when we are seeing historic investment in our community both publicly and privately. This RDA will incentivize the project to go from being a portable plant as it is now operating to a permanent plant that is better for them and our community.