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ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM <br /> Memo No. <br /> January 6, 2014 <br /> TO: Honorable Mayor Michael T. McElroy and City Council <br /> FROM: Ryan P. McCrady, City Manager <br /> Billy Tyus, Assistant City Manager <br /> Patrick Hoban, Economic Development Officer <br /> SUBJECT: Resolution adopting Redevelopment Agreement—City of <br /> Decatur-Harrison Management Group LLC <br /> SUMMARY RECOMMENDATION: Staff recommends that the attached <br /> redevelopment agreement between the City of Decatur and Harrison Management Group <br /> LLC be adopted. <br /> BACKGROUND: The City has for some time now been working to finalize the <br /> development of Mound Center,the retail destination located at the Intersection of <br /> U.S. 51 and Mound Road. We have reached an agreement in principal with Harrison <br /> Management Group LLC to bring an Ashley Furniture and other entities to the site, <br /> approving a contract for the sale of land for the project in October 2013.The space <br /> will also have options for other development which could include additional retail <br /> and, possibly, new restaurant space.The attached agreement calls for the city to <br /> share 80 percent of annual new sales tax revenue from Ashley and other stores for <br /> the first five years after opening. The proposed project site is currently not <br /> generating any sales tax revenue, so any of the shared taxes would come from new <br /> funds generated that the city otherwise would not be receiving. <br /> Research would indicate that there is now a gap of$9.5 million in spending for <br /> furniture in the local economy. This means that Decatur residents are spending$9.5 <br /> million dollars more on furniture outside of the community in addition to what is <br /> currently sold inside the city. <br /> POTENTIAL OBJECTION: None. <br /> INPUT FROM OTHER SOURCES: N/A <br /> STAFF REFERENCE: Any additional questions may be forwarded to Billy Tyus at <br /> 424-2727 or btyus e,decaturil.g_ov or Patrick Hoban at 424-2778 or <br /> phoban@decaturil.gov. <br /> BUDGET/TIME IMPLICATIONS: All reimbursements will be mads based on <br /> incremental sales taxes generated to the City of Decatur. <br />