75A - PH FOR CARIBOU INDUSTRIES - Laserfiche WebLink

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The property is presently improved with a three-story automobile parking structure of concrete construction. The building contains 144,699 square feet, and was originally constructed in 1983. A 2016 appraisal of the property with a hypothetical condition that the site is vacant and readily available for development appraised the property at $3.0 million. This assumes that the site is cleared and ready for development which for the City to demo and clear the site, prep it for development, the City's cost would exceed the value of the land. In addition, due to the aging parking structure's current condition, it was estimated that it would cost $8-10 million to bring the building up to current building and seismic codes, thus giving it a negative value. III. ECONOMIC INCENTIVE/DEVELOPMENT SUBSIDY PROVIDED, AND THE COST OF THE AGREEMENT The City is providing the following economic development subsidies to facilitate the development of this residential/hotel project: A. Fund the costs of the following improvements at the start of construction with a cap of no more than $13 million. • Demolition of the existing parking structure • Site preparation for construction prepared to a rough grade condition • Construction of 211 public parking spaces • Construction of private street: Sycamore reconnection It is important to note that the Developer will pay the City's debt service thru an Operating Agreement whereby the Developer will operate the Public Parking and pay all costs with no financial risk to the City B. Provide the Land for the development. IV. CONSIDERATION RECEIVED AND COMPARISON WITH THE ECONOMIC INCENTIVE/DEVELOPMENT SUBSIDY PROVIDED: The City expects to generate new sources of income from the development of this project (see Table below on Estimated General Fund Revenue). Currently, the parking structure's operating expenses are higher than the revenues received. Due to the current pandemic, the gap between expenses and revenue has increased significantly which has put a major strain on the City's current General Fund budget. With the new development project and new sources of income, the City is anticipating adding over $600,000 yearly to the City's General Fund budget. V. CREATION OF ECONOMIC OPPORTUNITY AND PUBLIC PURPOSE Implementation of this agreement effectuates a new residential and hotel development in place of an aging parking structure that will cost the City between $8-10 million to bring it up to current building and seismic codes. The goals and objectives that are satisfied by this project are: a 75A-208