Great new redevelopment up for approval by the City Council on October 27, 2009. The development is mixed use, with residential condos, office, and commercial.
REQUEST FOR COUNCIL ACTION
Agenda Date Requested: October 27, 2009
Action Requested: APPROVAL TO ENTER INTO A TIF REDEVELOPMENT AGREEMENT WITH JP RIVERFRONT DEVELOPMENT COMPANIES, INC. TO RECONSTRUCT THE SEALTEST BUILDING LOCATED AT 100 STATE STREET A TWO STORY 50,000 SQUARE FOOT BUILDING AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE NECESSARY DOCUMENTS. THIS PROJECT IS LOCATED IN THE WAREHOUSE DISTRICT TIF. (COUNCIL DISTRICT 1)
Background: The Redeveloper plans to completely reconstruct the Sealtest Building located at 100 State Street. The structure is a two story 50,000 square foot building. It will be reconstructed into a first class mixed development. Renovations to include but not limited to, a complete reconstruction and bringing the building into compliance with governing codes for accessibility, fire and structural safety. The Redeveloper will also design, bid and construct Oak Street to City specifications/requirements and be reimbursed by the City on completion.
Financial Impact: JP riverfront Development Companies, Inc. is asking for a TIF Redevelopment Agreement with a 50/50 split of the property tax for the life of the TIF. Conservative estimates indicate property tax on the increment would result in a total of $1,255,241 over the life of the TIF with $627,620 going to the City for infrastructure improvements (Exhibit A). The property is located in the Enterprise zone and the company is eligible to receive the sales tax exemption on building materials that is estimated to be $128,000; the City’s portion being $40,000.
NEIGHBORHOOD CONCERNS: Staff is not aware of any neighborhood concerns.
Impact if Approved: The City will enter into a redevelopment agreement with JP Riverfront Development, Inc. which will provide them with an incentive to redevelop and renovate the property. The redeveloper will receive 50% of the property tax increment over the life of the TIF and the City will capture the remaining 50% of the property tax increment to utilize for infrastructure improvements.
Impact if Denied: The City will not enter into the redevelopment agreement and the City will not capture the property tax for infrastructure improvements.
EEO Certification Number: 02942-101231
RELATIONSHIP TO THE COMPREHENSIVE PLAN: This project assists in achieving both the vision and goals of the Comprehensive Plan as follows:
Chapter 5 ECONOMICS--VISION: A HEALTHY, THRIVING ECONOMY; and GOAL: A.1. Provide an economic environment that supports existing and new businesses. A1.8. Consider providing public money to encourage private investment.
(Certification of Availability of Funds)