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TO: Mayor Richard C. Irvin
FROM: David Dibo, Economic Development Director
DATE: October 22, 2021
SUBJECT:
Approval of a Second Amendment to the Redevelopment Agreement with Craft Urban/Bernie Laskowski.
PURPOSE:
As was highlighted to the City Council on September 14, 2021 certain development agreements may need to be amended to take into account the changes in costs/economic conditions resulting from the COVID 19 Pandemic. This Second Amendment proposes changes in costs associated with the pandemic and other construction cost issues and also outlines funding associated with this new request.
BACKGROUND:
There have been three Council actions that are material to this amendment. The first is resolution R19-421 on December 30, 2019 provided for the City's purchase of the adjacent vacant lot (I W Downer Place) and a commitment to fund up to $600,000 in a renovation/construction loan subject to terms to be spelled out in a subsequent RDA, the second with resolution R20-077 on April 1, 2020 that formalized mutual understandings and commitments between Mr. Laskowski and the City, and the third resolution approved on March 23, 2021 was R21-066 which changed the development of the second floor from apartments to banquet facilities.
As noted in the last amendment, the new configuration provided for a greater revenue generation overall and was viewed favorably as the downtown is in need of dining spaces for larger groups (apartment needs are being met through other developments). The costs and funding of the current agreement are included in the attached copy of R21-066 and are also provided below in a side by side evaluation of the new needs of the development due to cost changes.
DISCUSSION:
The development of the restaurant/banquet facility is still an integral part of revitalizing the downtown. As the local and regional economies adjust to the post COVID 19 world, it is clear that costs have gone up in nearly all sectors of the economy. With respect t...
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