City Council Minutes 2017 11 06 - Laserfiche WebLink

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City Council Meeting Minutes November 6, 2017 Page 5 of 17 retail square footage to approximately 3,000 square feet Total permit and tax revenues from the redevelopment project over 2 years are estimated to be $170,000 and rebate payments are $60,000 Mayor Muckle asked how long the location has been empty. Director DeJong stated at least six years Grant Hopfenspirger introduced himself and noted he has been manager of Outback in Louisville for a number of years. He said it is expensive to do a startup restaurant and would appreciate any assistance from the City Councilmember Stolzmann stated we normally deduct existing space out of the incentive package, she stated this package does not introduce new jobs above the median wage. She noted incentivizing this restaurant may hurt existing restaurants and we aren't helping other new restaurants. She felt this was not appropriate to do that when other restaurants are not getting incentives She plans to vote against this tonight. Councilmember Loo stated Council did do a BAP for existing building renovation for Waterloo when they first came in; this was a wonderful use of our money. We have been saying we don't incentivize new restaurants on Main Street, but this particular location has been vacant for a long time. This is an appropriate use of the money and she plans to support this Councilmember Keany also will support this The space has been vacant for a long time and making this into a restaurant is a large amount of money Funding for the BAP is from the business, if it underperforms they won't get rebates in the package. Councilmember Maloney asked for a description of the math. Director DeJong stated the applicant believes new sales would be $2 Million per year and two years of that would result in 40% of the City's sales tax which yields about $58,000 per year Mayor Pro Tem Lipton stated he agreed with Councilmember Stolzmann and doesn't believe we have done many of these for business such as this It seems inconsistent with other packages the City has offered If this case needs incentives, the property owner should be providing them. He won't support this tonight Councilmember Leh stated we should compare economic incentives and is this similarly situated to others However, this property has been vacant a long time and from that stand point this is different from other locations in town. He felt comfortable supporting this one, but wanted to watch this carefully. Mayor Pro Tem Lipton stated it has been vacant so long the property owner should be incentivizing this; the City should not be financing this.