R2010-199 AUTHORIZING AMENDMENT TO REDEVELOPMENT AGREEMENT

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Development Proposal Reynolds Development, LLC proposes to construct a two-story or three story structure in the northwest half of the North Water Street Park across from the current Reynolds Building. The proposed investment is expected to exceed $3.8 million for a two-story building and $5.2 million for a three-story building. If the three-story building is constructed it is anticipated that 6,850 square feet on the ground floor will be new retail. In addition to the obvious impact of a stable employee base on the area, the developer estimates 20 full-time construction jobs will be created by this project. Required Improvements The proposed development triggers required improvements to be made by the City relative to two parts of the project: 1) improvements to the immediate vicinity of the proposed project (referred to as "on-site improvements", and 2) improvements to the properties located on the west side of the alley between East North St and East William Street(referred to as"off-site improvements). On-Site Improvements • Convert the alley west of the North Water Street Park to two-way traffic; • Upgrade streetscape (sidewalks, lighting, street furniture, landscaping and paving) around the new building; and Off-Slte ImprOvemellts (to be completed by City on or before August 1, 2011) • Make every effort to acquire and demolish the property located at the southeast corner of the intersection of South Main Street and North Street with a street address of 368 N. Main Street; and • Construction of a parking lot fronting North Main Street and to the west of the new building; and • Lease all of the parking stalls in the new parking lot and 20 spaces in Garage B (North &Water St.) free of charge for a period of 20 years; and • Agreement that the east half of the green space across from the current Reynolds Building will remain as green space. Financial Incentives The developer has also requested the following financial inducements to the project in order to make it financially feasible: • Sale of Property o The property for the development would be conveyed to the developer at no charge. • Reimbursement of Eligible Redevelopment Expenses o The proposed development would receive 75 percent of the incremental ad valorem taxes generated, not to exceed $200,000 per year, for reimbursement of eligible project costs. • Sales Tax o The developer would also receive 50 percent of the City's home rule portion of Retailers Occupation and Food and Beverage Tax for new retail located in the building, not including businesses relocating from an area within 1000 feet of the new structure. • Total Benefit o The proposed project could not receive more than $1.33 million for a finro-story building and $1.82 million for a three-story building in tax rebates over the life of the Olde Towne TIF. • Other Provisions o The developer has asked for a "right of first refusal" for the City-owned southwest portion of the North Water Street Park where another building is suggested.