City Council Agenda and Packet 2015 09 01

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SUBJECT: 550 SOUTH MCCASLIN BLVD. URBAN RENEWAL PLAN DATE: SEPTEMBER 1, 2015 PAGE 5 OF 13 • Issue an RFP to solicit proposals for redevelopment Such proposals could come from any interested parties including the property owner, interested retailers and /or developers. An RFP would ask for proposals specifying: + Improvements planned for the site + Proposed uses and activities + Time frames for completing the proposed redevelopment actions + Requested City financial assistance, if any, such as sales tax rebates + How costs (including potential legal costs) would be financed • Negotiate a proposed redevelopment agreement and submit the proposed redevelopment agreement to City Council for approval • Use the power to acquire property by purchase through eminent domain as authorized by the Urban Renewal Law to alleviate the qualifying conditions. The Plan specifies in section 4.2.1 that any proposal to acquire property under the power of eminent domain must first be approved by the affirmative vote of two - thirds of the entire Louisville City Council. These abilities would be further subject to the terms of a Cooperation Agreement (including proposed amendments to that Agreement) between the City and the LRC. Section 5.d of that Agreement requires City Council approval of any redevelopment agreement or other contract to carry out the purposes of the Plan. BACKGROUND: The property located at 550 South McCaslin Boulevard encompasses approximately 13.16 acres in the McCaslin Boulevard area of Louisville and was formerly occupied by a Sam's Club facility, but has remained vacant since the store's closing in early 2010. The store's closing has caused significant declines to the retail activity in and around the area. The building is 127,000 square feet in size and cannot be divided into smaller spaces without significant expense. Private restrictive covenants placed on the property prevent many of the most viable potential reuses of the current building. The property has a lack of full maintenance creating an impression the area is deteriorating. The McCaslin Boulevard area is the main retail sales tax generating area in Louisville and the minimal use of the property is lessening the retail viability of the area. Wal -Mart actively marketed the property for over 3 years with brokerage firms CBRE and SRS Realty. They were unsuccessful in finding a new owner for the building for a retail purpose. Centennial Valley Investment, LLC (Centennial Valley) and Seminole Land Holdings, LLC purchased the property in January 2014. The City Council on May 6, 2014, directed staff to commission a Conditions Survey. The Conditions Survey identified 4 blighting factors on the property. They are: 1) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness: COUNCIL COMMUNICATION 53