R2024-343 Resolution Authorizing an Amendment to the Redevelopment Agreement between the City of Decatur and Tillamook Illinois, LLC

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MEMO DATE: November 4, 2024 TO: Mayor Julie Moore Wolfe and City Council Members FROM: Tim Gleason, City Manager Jon Kindseth,Deputy City Manager SUBJECT: Resolution Authorizing Amendment to the Tillamook Redevelopment Agreement RECOMMENDATION: It is recommended by staff that this amendment to the Tillamook Illinois LLC RDA,providing additional incentives,be approved. BACKGROUND: The City of Decatur approved a redevelopment agreement with Tillamook in 2023 for their first ice cream plant outside of the state of Oregon. In the redevelopment agreement Tillamook committed to spending $50-million dollars for their building renovations and campus demolitions and cleanup. In return for their significant investment in this blighted area,the city agreed to reimburse them for the demolition of the pay for the demolition of 805 N. Morgan St. (former McClelland grocery building). This reimbursement provided by the City was approximately $400,000.00 as an eligible TIF expense. Additionally, the City agreed to vacate public ROWS no longer needed so they could secure their campus, after they acquired numerous properties in this area. Their costs to remodel the former Prairie Farms facility have far outpaced their expected costs and were projected to exceed $74-million dollars. Due to value-engineering, and some phased plans, their initial capital investment to get the plant back into operation is now expected at $66-million dollars; their investment in Decatur continues to grow. This proposed amendment provides two additional investments for this project. The first would be a reimbursement of expense for Tillamook to put a matching decorative fence along their west and northern property lines (along MLK and Marrietta ROWs) that would match the fencing along the westside of MLK along Crossing Health Care. This expense is expected to be between$100,000-150,000. This cost would be paid out of the Near North TIF. A map of proposed fence location and picture of type of fence is attached for reference. The second incentive provided for in this amendment is a building permit fee cap and reimbursement for those permit related fees above $100,000. The additional investment by Tillamook means their permit fees without relief would exceed$300,000. STAFF REFERENCE: For any questions, City Council may contact City Manager Tim Gleason or Deputy City Manager Jon Kindseth.