DATE: August 22, 2019
TO: Members of the Economic Development Authority
FROM: Nate Carlson, Economic Development Coordinator
Mitzi Baker, Community Development Director
Title
EDA Loan and Land request by Developer
Body
SUMMARY AND ACTION REQUESTED:
The EDA Board shall make a motion to authorize staff to draft loan documents per the recommended terms and draft purchase agreement documents related to the contribution of land for the redevelopment project. EDA final approval of the loan and land contribution will not occur until after the Council approves the TIF request.
BACKGROUND:
Rebound Real Estate is requesting TIF assistance, EDA-land contribution and an EDA Loan. The developers have included a potential public parking element for the City to consider, which would include reimbursement for spaces that would be under the management and control of the City. The redevelopment project requires a land contribution of 510 Washington Street, which the EDA authorized purchasing for $212,000. Closing has not occurred and is scheduled for September 6th. An EDA loan is requested to assist with site preparation in order to reduce upfront costs for the developer to prepare the site for construction. The Developer has provided a memo detailing that request, which is attached to this report.
The EDA Loan Review Committee met on August 14, 2019, to review the subsidy application. Following the discussion, Committee members recommend the TIF request proceed to the Council for approval and that the EDA consider contributing the 510 Washington Street property to the project. However, the Committee did express concerns regarding the loan request from the developer. The Committee directed staff to communicate those concerns and negotiate terms of the loan that would limit the EDA's risks.
The EDA Board shall review the following terms for the Rebound Real Estate, LLC request:
* EDA Land Contribution: $212,000
o 510 Washington Street Property
o Closing co...
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