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Date
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April 7, 2008
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Agenda
Item No. 35 Roll
Call No. 08-
Communication No. 08-185 Submitted by: Matthew A. Anderson Office
of Economic Development |
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AGENDA
HEADING:
Resolution
approving First Amendment to Development Agreement with ST Investments, L.L.C.
for development at East Fifth and Walnut Street.
SYNOPSIS:
On June 4, 2007,
by roll calls 07-1104 and 07-1105, the City Council approved the sale of city-owned
land and an economic development assistance package with ST Investments, L.L.C.
(Tom Howard, Manager, 1130 S.E. Westbrooke Drives,
Higher than
anticipated construction bids caused the developer to redesign elements of the
project to make the building more efficient and reduce costs. The redesign has put the project about 9
months behind schedule. The Amendment is
requested to extend dates in the Agreement and amend language to better reflect
the final design. Some of the design changes
include reducing the size of some balconies and eliminating mezzanines from the
top floor. The total residential unit
count decreases from 33 to 30 units, but the project still satisfies the
Conceptual Development Plan as approved by the Urban Design Review Board.
The Amendment
does not change the amount of the economic development assistance. Due to the delay caused by the redesign, the
two components of the assistance will begin and end one year later than
originally agreed. The first component
equals $435,000, as shown in the first two installments below. Additionally, the developer has agreed to
forego the final 5 years of residential tax abatement for which the project is
eligible. This new property tax stream
will be split 25% to the City and 75% to the developer as shown in installments
#3 - #7 below.
FISCAL
IMPACT:
Amount:
Proceeds to the
City from the sale of the parking lot ($161,500)
Economic
development payments totaling $914,505 (net present value = $647,822) will
follow the following schedule:
Installment
#1, December, 2011 = $17,500
Installment
#2, December, 2012 = $417,500
Installment
#3, December, 2016 = $95,901
Installment
#4, December, 2017 = $95,901
Installment
#5, December, 2018 = $95,901
Installment
#6, December, 2019 = $95,901
Installment
#7, December, 2020 = $95,901
Funding Source:
Proceeds from
the sale of the parking lot will be deposited in the FY 2007-08 Operating
Budget, EN051 ENG100701, page 124. The economic
development payments will come from TIF Fund SP370 FIN909105, Metro Center
Urban Renewal District.
ADDITIONAL
INFORMATION:
The 5-story
building will have floor plates varying from approximately 7,800 – 9,000 square
feet. The first floor will feature 4
retail bays that may be combined, should tenants desire larger space. The second floor will consist of office space
for up to 4 tenants. 30 for-sale
condominiums will occupy the 3 upper floors.
19 off-street, surface parking spaces will be located on the east end of
the site.
The Conceptual
Development Plan has been approved by the Urban Design Review Board and is on
file with the City Clerk.
PREVIOUS
COUNCIL ACTION(S):
Date: June 4, 2007
Roll Call
Number: 07-1104 and 07-1105
Action: On Sale of City-owned property in vicinity of
E. 5th and Walnut Streets to ST Investments, L.L.C., $161,500. Moved by Meyer to adopt. Motion Carried 6-1.
Absent: Coleman.
(A) Approving Development Agreement with ST
Investments, L.L.C. for development at East 5th and Walnut Streets. (Council Communication No. 07-321) Moved by Meyer to adopt. Motion
Carried 6-1. Absent: Coleman.
Date:
May 21, 2007
Roll Call
Number: 07-968
Action: On Sale of City-owned property in vicinity of
E. 5th and Walnut Streets to ST Investments, L.L.C., $161,500, (6-4-07). (Council Communication No. 07-292) Moved by Vlassis to adopt. Motion Carried 7-0.
BOARD/COMMISSION
ACTION(S):
Date:
April 17, 2007
Roll Call
Number: N/A
Action: Urban Design Review Board approval of the
economic development assistance.
Date:
February 20, 2007
Roll Call
Number: N/A
Action: Urban Design Review Board approval of the
conceptual development plan.
Date:
September 5, 2006
Roll Call
Number: N/A
Action: Preliminary design review. No action taken.
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS: NONE
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,