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Date
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February 9,
2009
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Agenda
Item No. 31 Roll
Call No. 09-
Communication No. 09-061 Submitted by:
Matthew Anderson Economic Development Administrator |
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AGENDA
HEADING:
Approval of Documents for a City Loan in the amount
of $165,000 to Stickel Enterprises, LLC for an Economic Development Project at
2925 Ingersoll Avenue, Des Moines.
SYNOPSIS:
By Roll Call Number 08-2207 dated December
22, 2008, City Council gave preliminary approval for a City loan in the amount
of $165,000 to assist Stickel Enterprises, LLC
(Jeffery E. Stickel, Manager, 408 Foster Drive, Des Moines) to construct a new,
three-story, 12,400 square foot, multi-tenant commercial building at 2925
Ingersoll Avenue, Des Moines, IA. On the February 9th, 2008 council agenda is a
roll call approving the loan documents for the City loan.
FISCAL
IMPACT:
Amount: $165,000.00
Funding Source: Economic Development
ADDITIONAL
INFORMATION:
Stickel Enterprises, LLC (Jeffery E. Stickel, Manager,
408 Foster Drive, Des Moines) has proposed the construction of a new,
three-story, 12,400 square foot, multi-tenant commercial building at 2925
Ingersoll Avenue, Des Moines, IA. The Developer has a signed lease dated July
23, 2008 with Two Dragons, LTD, Su Nong, President as the ground floor tenant. Stickel
Chiropractic will be the second floor tenant.
The developer is actively seeking a tenant for the third floor. The developer expects the building to be
available for Tenants to begin their internal improvements by March 31, 2009.
The project is incorporating several Leadership
Energy and Envirornmental Design (LEED) elements into
its construction including: development
density and connectivity between the building, residential neighborhoods, basic
services and pedestrian access, energy efficient materials such as polysteel
insulating concrete forms, permashine polished concrete flooring system,
aluminum louvers, grilles and sun control products, 1” insulated glass with low
“E” coating, white reflecting polymeric membrane roofing, high energy efficient
heating and ventilation and air conditioning units. The project’s architects estimate that to
LEED certify the project would add an additional $50,000 to its costs. The developer has chosen not to incur the
cost of certification, but will incorporate the LEED design elements discussed
above.
The site is located in the Neighborhood Pedestrian Commercial
District Zoning. To comply with the
zoning and to provide adequate parking and site circulation, the developer has
entered into easement agreements with the adjacent property owners. The improvements will provide parking and
access along the back of the project site and adjacent properties to
The total project costs are $2,091,000. The developer has secured first mortgage
financing of $1,755,000. The City’s
Office of Economic Development is proposing a city funded loan in the amount of
$165,000.00 to be repaid with an interest rate of three percent (3%) over 20
years secured by a second real estate mortgage on the project property and the
personal guarantee of the Developer, Jeffery E. Stickel. The developer will contribute the balance of
the project costs.
PREVIOUS
COUNCIL ACTION(S):
Date: December 22,
2008
Roll Call: 08-2207
Action: Preliminary approval
for a $165,000 Loan to Stickel Enterprises, LLC for
economic development project at 2925 Ingersoll Avenue. (Council
Communication No. 08-742) Moved by Vlassis to approve. Motion Carried 7-0.
BOARD/COMMISSION
ACTION(S): NONE
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,