R2009-229 PROVIDING FOR A FEASIBILITY STUDY ON THE DESIGNATION OF A PORTION OF THE CITY OF DECATUR

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ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM Memo No. 09-95 November 10, 2009 TO: Honorable Mayor Michael T. McElroy nd City Council FROM: Ryan P. McCrady, City Manager �,,/'+ Greg C. Crowe,Assistant City Manag��/ SUBJECT: Feasibility and Inducement Resolution—Pines Shopping Center 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 the Pines Shopping Center be approved by 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 may be allowable costs under the Plan. BACKGROUND: Neimann Holdings, LLC, owner of Save-A-Lot, has a real estate contract to purchase the Pines Shopping Center with the intent to redevelop the center and build a new Save-A-Lot. The current center and grocery store no longer comply with current building codes and many of the store fronts are unoccupied. In order to eliminate the blighted conditions, the developer requests the City's assistance, through the establishment of a TIF District,to tear down the existing center and rebuild a new grocery store and shopping center. The developer intends to invest at least $6 million in the property to tear down and rebuild the shopping center. POTENTIAL OBJECTION: None. INPUT FROM OTHER SOURCES: A meeting was held recently to notify the major taxing districts of the creation of a TIF district to affect redevelopment of the site. STAFF REFERENCE: Any additional questions may be forwarded to Greg Crowe at 424-2727 or at gcrowe@decaturil.gov. BUDGET/TIME IlVIPLICATIONS: None.