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-. '•r <br /> DEVELOPMENT SERVICES MEMORANDUM <br /> Memo No. 10-97 <br /> October 27 20101I, <br /> � <br /> TO: Honorable Mayor Michael T. McElroy and City Council <br /> FROM: R �n P. McCrady, City Manager <br /> G�r�eg C. Crowe, Assistant City Manager <br /> SUBJECT: Redevelopment Agreement with Reynolds Development, LLC <br /> SUMMARY RECOMMENDATION: Staff recommends approval of the resolution authorizing the <br /> Mayor to sign the 1Zedevelopment Agreement with Reynolds Development, LLC (RDLLC) and approval of <br /> the resolution term�nating the current parking lease agreement with RDLLC. <br /> BACKGROUND: On October 16, 2006, the City Council approved a Redevelopment Agreement <br /> with RDLLC to facilitate the construction of a three-story building with a minimum of 67,200 <br /> square feet at 3S0 N. Water St. at an expected cost of over $12 million. The City agreed to <br /> reimburse RDLL�,C a portion of the TIF and Municipal Sales Tax increment produced by the new <br /> development for I a not to exceed amount of $3.8 million. RDLLC finished construction of the <br /> 75,000 square foot building and Regions Bank moved into the building November of 2008. Since <br /> that time RDLLC has been marketing the building for other tenants to go along with locating their <br /> own company Dansig/Consociate Insurance Group. Currently, they are negotiating a purchase <br /> agreement with t�DM to purchase the building from RDLLC to move hundreds of ADM employees <br /> to Downtown in addition to the employees currently at the Global Training Center. ADM expects <br /> to utilize all of tl�e remaining space in the building for their employees. Regions Bank has a long <br /> term lease that will allow them to stay in the building at their option. At the October 21, 2010 <br /> meeting, City Council approved an amendment of the current Redevelopment Agreement with <br /> RDLLC to facilitate the property acquisition by ADM. Since, RDLLC will be selling the property <br /> at 350 N. Water the current lease agreement approved in 2008 should be terminated. <br /> RDLLC is plann�ng on constructing another building in Downtown after selling the building at 350 <br /> N. Water St. Th� building is planned to be constructed on the northwest portion of the North Water <br /> Street Park across the street. The attached document titled 2010 Downtown Redevelopment Project <br /> lays out the City's and Developer's obligations and the benefits to the community from the project. <br /> POTENTIAL OBJECTION: None. <br /> INPUT FROM �THER SOURCES: The Agreement has been reviewed by the City Corporation <br /> Counsel. <br /> STAFF REFERENCE: Any additional questions may be forwarded to Greg Crowe at 424-2727 <br /> or at gcrowe@decaturil.gov. <br /> BUDGET/TIM� IMPLICATIONS: None <br />