R2003-67 RECEIVING AGREEMENT - Laserfiche WebLink

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LEGAL DEPARTMENT MEMORANDUM No. 2003-7 May 8, 2003 TO: Honorable Mayor Howley and City Council Members FROM: Steve Garm��;`� - ity Manager John W. CoUfer, Corporation Counsel,�'�;.�.- � RE: Downtown TIF Agreement On the Council agenda for May 12th is a proposd agreement between the City and DemirCo Properties ("DemirCo") for the development of portions of three (3) blocks in downtown Decatur. The Council will be asked only to receive this agreement and place it on file with the City Clerk for public viewing and comment - the vote for formal approval of the agreement will occur at the meeting of June 2nd. The property involved is the east side of the 300 block of N. Water (Phase I), and the west side of the 300 block of N. Water and the east side of the 300 block of N. Main, excluding the K's and Strigilos buildings (Phase II). Exhibit C to the agreement contains a site plan which depicts the property. Under the terms of the agreement, DemirCo will be required to demonstrate to the City that it has construction contracts, financing and tenants for the buildings in Phase I; when that showing has been made, the City will convey parcels in Phase I to DemirCo. The City will then construct certain public improvements and DemirCo will construct two (2) buildings. When DemirCo has achieved substantial compliance in Phase I (required within 2 years), and when DemirCo again demonstrates that it has financing and tenants for Phase II, the City will then demolish the building located in Phase II and convey parcels therein to DemirCo for the construction of two (2) more buildings. Again, certain public improvements will be constructed by the City. The conveyance of Phase I parcels is scheduled March 1, 2004, which means that ' DemirCo must have financing and tenants by that date. The conveyance of the properties in both phases will be at no cost to DemirCo; the City intends to reimburse itself for the acquisition and demolition costs, as well as the costs for public improvements, through tax increment (TIF) caused by increased real property values in the area. Questions regarding the proposed agreement should be directed to A. J. Krieger (424-2727) or John Couter (424-2807). JWC:ps cc: Wendy L. Morthland Steven G. Jones