City Council Agenda and Packet 2015 05 19

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City Council Meeting Minutes May 5, 2015 Page 3 of 33 Old Santa Fe Grill and is proposed to be redeveloped into an approximately 13,000 sf retail building able to accommodate up to 6 retail tenants. The property is owned by McCaslin Retail, LLC an entity controlled by Signature Partners. McCaslin Retail, LLC is currently negotiating leases with the current tenant, Old Santa Fe Grill, as well as several food establishments and retailers not currently in Louisville. The retail additions have the potential to generate an additional $4,000,000 in retail sales above the current sales generated at the property. The prospective new tenants wish to remain confidential, but are national and regional brands that have had success in the metro Denver area. City staff estimates the redevelopment will generate new revenue of approximately $776,000 from building permit fees, construction use taxes, and increased sales tax generation directly to the City in the first 5 years of operation, given the investment. Based upon the estimated revenue projection, staff recommended the following: Proposed Assistance 50% rebate of Building Permit Fees 50% rebate of Construction Use 40% rebate of increased Sales Taxes for 5 years Total Rebates Approximate Value $13,500 $21,000 $240,000 $274,500 Staff Recommendation: Staff recommended the City Council approve Resolution No. 25, Series 2015. PUBLIC COMMENTS Sherry Sommer, 910 S. Palisade Court, Louisville, CO questioned whether there was really a need to refund 30% of the City's financial gain to the developer. PUBLIC COMMENTS Council member Stolzmann responded to Ms. Sommers question and explained the City tries to stay competitive with the surrounding municipalities, who also offer incentives to developers and new businesses. What is rebated is just a portion of the sales tax they bring to the City. In this particular case, it is sales tax over what is currently being generated on the property. She felt it was a fair amount to rebate in order to stay competitive because the City does want the retail. The City will get the 60% of the sales tax for five years and afterwards they will get 100% of the sales tax. MOTION: Mayor Pro Tem Dalton moved to approve Resolution No. 25, Series 2015, seconded by Council member Leh. Roll call vote was taken. The motion passed by a vote of 7 -0. 34