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ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM <br /> No. 02-96 <br /> October 2, 2002 <br /> TO: Mayor Terry M. Howley and City Council Members <br /> FROM: Steve Garman, City Manager rn�,� <br /> A. J. Krieger, Assistant City Manage <br /> Dane C. Bragg, AICP, Economic D velo ment Coordinato� <br /> SUBJECT: Redevelopment Agreement - 135 East Prairie Avenue <br /> SUMMARY , RECOMMENDATION: Staff recommends approval of the attached <br /> redevelopment agreement to rehabilitate the fire-damaged structure at 135 East Prairie Avenue. <br /> BACKGROUND: The subject property was extensively damaged by fire in December, 1999. <br /> As a result, the current property owner requested authority of the Council in June, 2002 to <br /> demolish the structure to settle the insurance claim on the property. Subsequent discussions with <br /> a developer have generated interest in reusing the existing building in lieu of demolition. <br /> The proposed redevelopment agreement would provide TIF incentive to the developer, Lucas <br /> Properties, LLC, in order to rehabilitate the existing structure into four(4) apartment units on the <br /> upper floors and a retail space on the first floor. The developer estimates the redevelopment <br /> project will cost $375,000 and would bring the structure to fully operational status in September, <br /> 2003. Staff is of the opinion that this agreement achieves the following objectives: <br /> 1. Eliminates partial street closure and business disruption on East Prairie associated with the <br /> demolition of the existing structure; <br /> 2. Preserves an architecturally significant structure within the historic Merchant/Prairie blocks <br /> of downtown; <br /> 3. Provides for the reuse of the property within a reasonable time frame, thereby generating <br /> additional business activity within the area; and <br /> 4. Eliminates the presence of a vacant lot in this block and the open view of service delivery <br /> areas and refuse collection areas along the Merchant Street alley. <br /> Specifically, the redevelopment agreement would reimburse the developer 50 percent of <br /> incremental property tax generated per year up to a maximum of$82,500. The reimbursement <br />