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City Council <br />Meeting Minutes <br />November 6, 2017 <br />Page 5 of 17 <br />retail square footage to approximately 3,000 square feet. Total permit and tax revenues <br />from the redevelopment project over 2 years are estimated to be $170,000 and rebate <br />payments are $60,000. <br />Mayor Muckle asked how long the location has been empty. Director DeJong stated at <br />least six years. <br />Grant Hopfenspirger introduced himself and noted he has been manager of Outback in <br />Louisville for a number of years. He said it is expensive to do a startup restaurant and <br />would appreciate any assistance from the City. <br />Councilmember Stolzmann stated we normally deduct existing space out of the <br />incentive package, she stated this package does not introduce new jobs above the <br />median wage. She noted incentivizing this restaurant may hurt existing restaurants and <br />we aren't helping other new restaurants. She felt this was not appropriate to do that <br />when other restaurants are not getting incentives. She plans to vote against this tonight. <br />Councilmember Loo stated Council did do a BAP for existing building renovation for <br />Waterloo when they first came in; this was a wonderful use of our money. We have <br />been saying we don't incentivize new restaurants on Main Street, but this particular <br />location has been vacant for a long time. This is an appropriate use of the money and <br />she plans to support this. <br />Councilmember Keany also will support this. The space has been vacant for a long time <br />and making this into a restaurant is a large amount of money. Funding for the BAP is <br />from the business, if it underperforms they won't get rebates in the package. <br />Councilmember Maloney asked for a description of the math. Director DeJong stated <br />the applicant believes new sales would be $2 Million per year and two years of that <br />would result in 40% of the City's sales tax which yields about $58,000 per year. <br />Mayor Pro Tem Lipton stated he agreed with Councilmember Stolzmann and doesn't <br />believe we have done many of these for business such as this. It seems inconsistent <br />with other packages the City has offered. If this case needs incentives, the property <br />owner should be providing them. He won't support this tonight. <br />Councilmember Leh stated we should compare economic incentives and is this similarly <br />situated to others. However, this property has been vacant a long time and from that <br />stand point this is different from other locations in town. He felt comfortable supporting <br />this one, but wanted to watch this carefully. <br />Mayor Pro Tem Lipton stated it has been vacant so long the property owner should be <br />incentivizing this; the City should not be financing this. <br />32 <br />