R2003-67 RECEIVING AGREEMENT - Laserfiche WebLink

Home Browse Search

Economic & Urban Development Department Memorandum # 03-41 May 29, 2003 TO: Honorable or Paul Osborne and City Council Members FROM: Steve G City Manager A.J. Krieg r, Assistant City Manage SUBJECT: Downtown edevelopment Agree RECOMMENDATION: Attached to this memorandum is a resolution authorizing the City Manager to execute a redevelopment agreement between the City of Decatur and DemirCo Properties, LLC. The subject redevelopment agreement was received and filed by the City Council at its May 12, 2003, regular meeting and has remained available for public inspection since that time. City staff recommends approval of the resolution and execution of the redevelopment agreement. � BACKGROUND: ' As Council is aware City staff has been working with DemirCo to negotiate and prepare the attached � redevelopment agreement. As proposed, the agreement contemplates the redevelopment of the 300 � block of N. Water and the east side of the 300 block of N. Main. The agreement calls for DemirCo i, to develop at least 80,000 sqft. of commercial space in four separate buildings to accommodate a mi�c of retail and office users; two buildings in each phase. Elchibit C to the proposed agreement shows the concept site plan and includes a narrative description of architectural and other elements of the building themselves. � Redevelonment Agreement: The proposed redevelopment agreement establishes vazious performance related milestones that must be met by DemirCo prior to closing, and that in turn impose certain requirements upon the City once the project achieves substantial completion. Attached is Legal Department Memorandum#03- 07, which explains vazious provisions of the agreement, including its numerous performance � milestones. Tax Increment: In projecting the potential return to the City, it is necessary to employ certain assumptions; assumptions that are subject to change over time. ' Ex�enditures: • The City of Decatur spent $1,762,700 in Phase 1. This includes property acquisition, asbestos abatement,related engineering services, and demolition. • Assume the City will spend an equal amount for Phase 2 and assume a 50%contingency; +/- $5.2 million total. The City has already spent $376,472 to acquire 5 Phase 2 area properties. There are 6 rema.ining to be acquired. City staff is not aware of any reason to assume tha.t Phase 2 demolition costs will not be comparable to Phase l.