R2005-08 AUTHORIZING AGREEMENT - Laserfiche WebLink

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ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM No. OS-17 February 2, 2005 TO: Mayor Paul Osbome and City Council Members FROM: Steve Ga ,City Manager Dane C. g,Assistant City Managel� f�� SUBJECT: Real Estate Purchase Contract—Starbuck's Coffee SUMMARY RECOMMENDATION: Staff recommends approval of the attached real estate purchase contract to sell Lot 3 of Mound Center at a sale price of$350,000, for and in consideration of establishing a Starbuck's Coffee shop on the premises. When originally planned, the 1.22 acre pad was estimated to generate as much as$250,000 from the land sale. The developer, BSG-STAR, LLC, intends to develop the premises with a 4,900 square foot retail building. The proposed Starbuck's Coffee would occupy approximately 37 percent, or 1,800 square feet, of the building. The remainder of the building would be occupied with similar retail/restaurant uses. A drive-through will be provided on the site. Starbuck's Coffee is considered a high-end retailer in the U.S. The average retail outlet generates approximately $521 in sales per square foot annually. Based on average sales, the proposed outlet would generate approximately$937,800 in retail sales annually. Net City tax revenue from Starbuck's would be approximately $42,000 annually. The store plans a late- Fall opening. Starbuck's will employ 12-18 employees in the new store. , Under the agreement, BSG-STAR, LLC retains certain contingencies that must be met in order to acquire the property and open the new store, including the execution of a lease with Starbuck's Corporation and other due diligence. BACKGROUND: The subject site is located along West Mound Road and adjacent to the Target entrance. 1'he 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 dbrag��c�decaturnet.o�. BUDGET/TIME IMPLICATIONS: Sales tax revenues as noted above.