TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Officer
DATE: August 16, 2013
SUBJECT: title
Resolution Authorizing the Execution of a Development Agreement with Knightsbridge Global, Ltd. for 35 N Broadway (KnightsBridge Global, LTD. - AU22/3-13.179-AG - ES - Ward 2)
body
PURPOSE:
Attached is a resolution authorizing the execution of a development agreement for KnightsBridge Global, LTD. Pursuant to the Agreement KnightsBridge Global, LTD. will receive a $75,000.00 reimbursement toward the acquisition and now-completed renovation of the building at 35 N Broadway. Funding for the reimbursement will come from Tax Increment Financing District No 1.
BACKGROUND:
The property at 35 N Broadway is directly on the south east corner of New York Street and Galena Boulevard. Built in 1914, this building is part of the historic downtown and was purchased by KnightsBridge Global, LTD. in 2012 for $200,000.
KnightsBridge Global, LTD. is an international company. PME Arts & Crafts (USA) was established in 2008 as a result of the overwhelming success of its parent company, Knightsbridge PME Ltd (KPME), now in its sixth decade. The company has long since enjoyed a reputation as 'best-in-class' when it comes to quality and this reputation was enhanced when KPME entered the world of cake decorating in the 1970s under the PME Sugarcraft Ltd umbrella. To consolidate upon this success PME Sugarcraft merged with Knightsbridge Bakeware Centre in 1999 to form the company which many in the sector would now describe as the world-wide leader in the manufacturing and production of high-end quality cake decoration equipment: Knightsbridge PME.
DISCUSSION:
Project: KnightsBridge Global, LTD. has renovated this approximatly 8,000 square foot facility for retail and classroom uses. The capacity of the classes will be approximately 10-15 students at a time, and they will draw as many as 12 teachers each specializing in various techniques. This is the first U.S. site for the school (they teach world- wide), and along with teaching they also have a 1,200 square feet retail store which sells cake decorating supplies and equipment.
Evaluation: Staff has been following the progress of the acquisition and remodel of the building since the purchase in 2012. Over $550,000 has been invested in this facility, a substantial portion of which were unforeseen structural repairs, which amounted to approximately $140,000. KnightsBridge Global, LTD. has shown a commitment to their project and to Aurora. The project is nearly complete, and they are just about to open. The request for consideration is a partial reimbursement of acquisition costs of the building in the amount of $75,000. Funds are available in TIF District No. 1 for the reimbursement (Major Project Development, Interior/Exterior Grant Program).
IMPACT STATEMENT:
The development made possible through the approval of this agreement will have a positive impact on the economic health of the City of Aurora and the downtown including but not limited to the following:
- The redevelopment of the property is expected to result in increased employment downtown;
- The redevelopment of this property will enhance the tax base of the City of Aurora.
- The redevelopment of this property will add to the overall vitality of downtown Aurora through Knightsbridge Global's international brand.
RECOMMENDATIONS:
Staff recommends approval of the resolution authorizing the execution of a redevelopment agreement with Knightsbridge in an amount not to exceed $75,000.
ATTACHMENTS:
Property Information Worksheet
Photos of 35 N Broadway
Draft Resolution
Draft Agreement
cc: Alderman O'Connor, Chairman
Alderman Schuler
Alderman Mervine
Alderman Peters, Alternate