City Council Minutes 2014 02 04 - Laserfiche WebLink

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City Council Meeting Minutes February 4, 2014 Page 6 of 28 Parks and Recreation Director Stevens explained the City and FEMA may not agree on what is eligible. Another area of concern is underground pipes damaged by sand, silt and flood water. Staff's best estimate is a FEMA reimbursement of $2 million. MOTION: Council member Keany moved to approve the Construction Services Agreement with Landscapes Unlimited for the Coal Creek Golf Course Disaster Recovery Project, seconded by Mayor Pro Tern Dalton. Roll call vote was taken. The motion carried by a vote of 6-0. Absent: Council member Lipton. RESOLUTION No. 6, SERIES 2014— A RESOLUTION APPROVING A BUSINESS ASSISTANCE AGREEMENT WITH HISTORIC 740 FRONT STREET, LLC FOR THE STABILIZATION AND EXPANSION OF 740 FRONT STREET IN THE CITY OF LOUISVILLE Mayor Muckle requested a staff presentation. Economic Development Director DeJong explained City Council action is requested on a proposed Economic Development Business Assistance Package (BAP) for the stabilization and expansion of the building at 740 Front Street to be done by Historic 740 Front Street, LLC. The proposed business assistance package is similar to others recently granted, including a partial rebate on both the building permit fees and construction use tax for stabilization and expansion. Historic 740 Front Street, LLC is considering a major stabilization of the existing building and a 990 square foot expansion to the building. The property needs upgrades to make it economically viable and requires a major capital investment. Stabilization and renovation costs are estimated to be $322,000 and the building expansion will cost approximately $221,000. This $543,000 investment in the property will increase the retail viability for the property and downtown. This project meets the general criteria by which assistance may be granted in accordance with the Business Assistance Policy. The project brings high quality development utilizing an existing building; expands a current retail outlet, and brings a value added result to the City (historic preservation). The assistance would be funded by permit fees and construction use tax from the stabilization and renovation of the existing space and expansion of the building. Staff estimates the project will generate new revenue of approximately $20,000 from building permit fees and construction use taxes directly to the City in the first year of operation, given an investment of $543,000 stabilization and expansion costs. Approximately $1,350 of that amount is fees designated for Open Space and Historic Preservation purposes. Based upon the estimated revenue, staff recommends a building permit fee of $4,150 and building use tax rebate of $4,100 for a total proposed assistance package of $8,250.