Revitalization Commission Agenda and Packet 2017 08 14

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4.5M in double tax-free bonds, exclusively for public improvements, thereby permitting DeLo to move forward with 60 luxury town homes; 130 Class -A apartment homes; 30,000 square feet of Class -A office, retail, and restaurant space; 13,000 square feet of inline retail and 8,000 square feet of drive through retail. To date, Foundry Builders has built and sold approximately 35 town homes averaging a sales price of $680K. The Class -A apartment homes are under construction with delivery of the first units expected by the first week of July 2017. The Class -A office, retail, and restaurant space will be "roughed -in" by August 2017, with tenant improvements beqining shortly thereafter. The in-line retail has been completed and is hosting tenants such as Moe's Bagels, Growlers, and Vic's Coffee. Furthermore, Foundry Builders worked with Tebo Properties and the City of Louisville to acquire and construct a large surface public parking facility, accommodating approximately 67 spaces between DeLo Plaza (inline retail and drive through), DeLo Apartments and DeLo Commercial. In 2010, the macro and micro economic climate was bleak and still reeling from the Great Recession. Without the Core Project Area Agreement, the support and cooperation of the Louisville Revitalization Commission and the City of Louisville, DeLo would not be a reality today. When the project's costs were originally projected, the upswing in the economy was unforeseeable and the associated hyper -inflation in construction costs driven by a very tight labor market are further compounded by increases in material costs. Examples of which are record prices for concrete and steel. Moreover, and most importantly, Foundry Builders incurred approximately 1M in additional expenses to mitigate double haulage undermining that exists throughout Historic Downtown Louisville. Foundry Builders absorbed the huge and unanticipated increases in project costs and persevered to deliver the project to the community on time and as originally envisioned. DeLo Lofts West was approved by City Council on December 6th, 2016 comprised of an additional 33 Class -A apartment homes and 8 live -work units. Urban infill is inherently complex, and like all the blighted parcels within DeLo, extraordinary horizontal infrastructure improvements are required. A few examples of these extraordinary circumstances are deteriorating structures lingering from past industrial uses, inadequate access, unavailable mid - block access, abandoned buildings creating unsafe and unsanitary conditions, unusual topography requiring specialized grading and temporary conditions acting as a catalyst for the future redevelopment of the eastern portion of the BooM property. Lastly, defective title and unusual easement conditions remain an impediment to successful completion of the Delo Lofts project. In addition to the aforementioned impediments, Foundry Builders would like to further catalyze redevelopment within the Core Project Area, via the proposed horizontal infrastructure improvements outlined within Exhibit D-1. To do so, requires upfront funding once again. This upfront funding will position DeLo Lofts East to redevelop sooner rather than later.