Staff:
Agenda:
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Molly Mehner, Deputy City Manager, AICP, ICMA-CM
12/20/2021 |
AGENDA REPORT
Cape Girardeau City Council
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21-269
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SUBJECT
An Ordinance approving an amended and Restated Redevelopment Agreement for the North Middle/Broadway Tax Increment Financing Redevelopment Plan.
EXECUTIVE SUMMARY
On August 3, 2020, the City Council passed Ordinance 5321 designating the North Middle/Broadway Tax Increment Financing (TIF) Redevelopment Project Area and Ordinance 5320 approving a Redevelopment Agreement outlining the terms of the TIF assistance. The project included the redevelopment of 430 Broadway and 260 North Middle Street in addition to parking and other site improvements. The Approved Redevelopment Agreement included a project completion date of December 31, 2021 for everything. Due to numerous factors such as Covid-19, labor shortages and supply chain issues, the project will not be completed by the deadline. The applicant has requested amendments to the Redevelopment Agreement to address these delays.
BACKGROUND/DISCUSSION
The Approved Redevelopment Agreement, dated August 3, 2020, included a project completion date of December 31, 2021. Due to numerous factors such as Covid-19, labor shortages and supply chain issues, the project will not be completed by the deadline. The applicant has requested amendments to the Redevelopment Agreement to address these delays.
The applicant has requested an amendment to the Redevelopment Agreement extending the project completion deadline to July 31, 2022 for the 430 Broadway building. In addition, the Agreement will be amended to defer the completion of the building at 260 North Middle Street within a reasonable period of time. This will allow the developer to seek reimbursement for the 430 Broadway building upon completion. Reimbursement for 260 North Middle will not occur until that building's rehabilitation is complete and an occupancy permit is issued. The Agreement will also be amended to separate the maximum allowable TIF assistance allowed per building.
FINANCIAL IMPACT
There is no financial impact from the proposed amendment to the Redevelopment Agreement. The maximum allowable TIF assistance remains the same; the amended Agreement simply separates the assistance amount by the respective buildings.
STAFF RECOMMENDATION
Staff recommends the City Council approve the Amended and Restated Redevelopment Agreement for the North Middle/Broadway Tax Increment Financing Redevelopment Plan.
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