R2010-201 AUTHORIZING REDEVELOPMENT AGREEMENT

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N DEVELOPMENT SERVICES MEMORANDUM Memo No. 10-93 October 18, 2010 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Greg C. Crowe, Assistant City Manager SUBJECT: Development Agreement with ADM SUMMARY RECOMMENDATION: Staff recommends approval of the resolution authorizing the Mayor to sign the Development Agreement with ADM. The economic benefit of this project is positive and will drastically enhance the redevelopment of downtown. BACKGROUND: On October 16, 2006, the City Council approved a Redevelopment Agreement with Reynolds Development to facilitate the construction of a three-story building with a minimum of 67,200 square feet at 350 N. Water St. at an expected cost of over $12 million. The City agreed to reimburse Reynolds a portion of the TIF and Municipal Sales Tax increment produced by the new development for a not to exceed amount of$3.8 million. Reynolds finished construction of the 75,000 square foot building and Regions Bank moved into the building November of 2008. Since that time RDLLC has been marketing the building for other tenants to go along with locating their own company Dansig/Consociate Insurance Group. Currently, they are negotiating a purchase agreement with ADM to purchase the building from RDLLC to move hundreds of ADM employees to Downtown in addition to the employees currently at the Global Training Center. ADM expects to utilize all of the remaining space in the building for the retention of hundreds of their employees by locating them Downtown. Regions Bank has a long term lease that will allow them to stay in the building at their option. The proposed Development Agreement between the City and ADM provides for some improvements on behalf of the City by them purchasing the Building at 350 N. Water St. No financial incentives are provided in the Agreement. The improvements to be made by the City include: • Leasing all of the parking spaces in the 2"d floor, ramp between the 2°d floor and 3`d floor, 3`d floor, ramp between the 3`d floor and 4�' floor and 4�' floor of Parking Garage B (North and Water St.) at no charge for 20 years when ADM purchases the Reynolds Building. ADM currently leases the spaces in the 3`d floor, ramp between the 3`d floor and 4`"floor and 4th floor at no charge. Their leased spaces will also be utilized by Regions Bank. • Leasing the remaining spaces in the 1 St floor and the ramp between the 1 St floor and 2°d floor of Parking Garage B at no charge for 20 years as soon as ADM has located over 500 employees Downtown between the Global Training Center and the Building at 350 N. Water St.