R2012-165 PROVIDING FOR A FEASIBILITY STUDY ON THE DESIGNATION OF A PORTION OF THE CITY

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DEVELOPMENT SERVICES MEMORANDUM Memo No. 12-42 August 28, 2012 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Billy Tyus, Assistant City Manager Richelle Irons, Director of Neighborhood Services Stephanie Ashe Brown, Development Planner SUBJECT: Feasibility and Inducement Resolution—Grand Avenue Redevelopment Project TIF SUMMARY RECOMMENDATION: Staff recommends that the attached feasibility and inducement resolution for the establishment of a Tax Increment Finance (TIF) District for the redevelopment of an area generally bound by Oakland Avenue to the East, IL Route 48 to the West, Leafland Avenue to the South and the intersection of Oakland Avenue and IL Route 48 to the North be approved by the Decatur City Council. The resolution allows the City to undertake a feasibility study to establish a Redevelopment Area and Plan in accordance with the State TIF Act. The resolution also provides for the costs in undertaking the feasibility study and producing the Redevelopment Plan to be allowable costs. BACKGROUND: The City has been working with a developer on a potential project that we feel will bring new life, energy and a needed economic boost to this area of the city. As you know, portions of this area have sat vacant for years and have significant ingress and egress issues. Many of the properties no longer comply with current building codes and commercial properties have had to be demolished after falling into disrepair. The site also has potential environmental issues to be addressed, which could make development difficult without some assistance. In order to eliminate the blighted conditions, the developer will be requesting city assistance,through the establishment of a TIF District,to redevelop the site. This resolution does not commit the city to anything financially—it simply allows the city to proceed with a feasibility study in accordance with state statute. POTENTIAL OBJECTION: None. INPUT FROM OTHER SOURCES: We have talked with the larger taxing districts and will continue to have conversations with them if this process proceeds. STAFF REFERENCE: Any additional questions may be forwarded to Billy Tyus at 424-2727 or at btyus@decaturil.gov. BUDGET/TIME IMPLICATIONS: None.