R2006-40 AUTHORIZING AGREEMENT WITH GMRI, INC.

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ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM No. 06-54 March 14, 2006 TO: Mayor Paul Osborne and City Council Members FROM: Steve Ga , Manager Dane C. Bra , sistant City Managef,� Y'� SUBJECT: Real Estate Pur hase Contract—Olive Garden SUMMARY RECOMMENDATION: Staff recommends approval of the attached real estate purchase contract to sell Lot 4 of Mound Center at a sale price of$400,000, for and in consideration of establishing a 6,000 square foot Olive Garden restaurant on the premises. The developer, GMRI, Inc. (a wholly owned subsidiary of Darden Restaurants, Inc.), intends to develop the corner lot with a new restaurant as shown in the attached elevations and site plan. Olive Garden is considered a premiere restaurateur in the U.S. with over SSO locations nationwide. The proposed store will employ approximately 120 full- and part-time staff. Construction value of the proposed restaurant will exceed$3 million. Under the agreement, GMRI, Inc. retains certain contingencies that must be met in order to acquire the property and open the new store, including a 60 day due diligence period prior to closing. The store is expected to begin construction in July 2006. The restaurant plans to open in January 2007. BACKGROUND: The subject site is located along West Mound Road at the corner of U.S. Route 51. The site has been designated for restaurant use as part of the approved planned unit development. POTENTIAL OBJECTION: N/A. INPUT FROM OTHER SOURCES: The proposal has been reviewed by Corporation Counsel and the City's broker for the site, Blackstone Group. STAFF REFERENCE: Any additional questions may be forwarded to Dane Bragg at 424- 2727 or dbra�g(ci�decaturnet.org. BUDGET/TIME IMPLICATIONS: The purchase price will be deposited into the Capital Fund upon receipt.