R2000-109 AUTHORIZING EXECUTION OF AGREEMENT

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' � , � � : ECONOMIC AND URBAN DEVELOPMENT DEPARTMENT MEMORANDLTM # 00-110 July 5, 2000 To: Honorable Ma Terry M. Howley and City Council Members From: Steve Garma ty Manager A.J. Krieger, A istant City Manage� Re: Fairview Plaza/134 E. Main Street Redevelopment Agreement The attached resolution and agreement describe the City's proposed contribution(s) to Real Estate Investors of Decatur (REID) Inc., for the redevelopment of the existing Fairview Plaza retail center, and the vacant (former Illinois Power) building at 134 E. Main Street. Per Council's direction, City staff has negotiated the attached agreement which among other things, provides for the redevelopment of both sites, while removing Fairview Plaza from the approved tax increment financing (TIF) district. Per Council's direction, City staff explored alternatives for encouraging the redevelopment of the ' existing Fairview Plaza retail center without the use of tax increment funds; thus allowing for the ' center's removal from the TIF. The proposed agreement also encourages the redevelopment of the 134 E. Main St. building by providing for reimbursement for required life/safety improvements. The provisions of the agreement are as follows: Fairview Plaza: • REID will acquire and redevelop Fairview Plaza in a manner substantially in accordance with Exhibit A. • Through a combination of enterprise zone property tax abatement and incremental sales tax rebate, the City will extend REID a total incentive of up to $750,000. • The City will rebate an incremental increase in retail sales tax receipts, that when added to the total dollar value of the enterprise zone property tax abatement, will equal an amount not to exceed $750,000. • Any sales tax rebate will be limited to those generated by tenants either not currently �ocated within Fairview Plaza, and/or not within a new, freestanding building. 134 E. Main Street: • REID will make substantial life/safety improvements to the property at 134 E. Main St. • The City will reimburse out of the tax increment fund an amount not to exceed $200,000 for eligible costs associated with the life/safety improvements. • The City will release a lien on property located behind One Main Place. Pending approval of the proposed ageement, redevelopment activity should begin this Fall. Staff recommends approval of the redevelopment agreement.