Revitalization Commission Agenda and Packet 2020 04 15

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SUBJECT: RESOLUTION NO. 20-01: PUBLIC INFRASTRUCTURE ASSISTANCE AGREEMENT WITH 824 SOUTH, INC. DATE: APRIL 15, 2020 PAGE 2 OF 3 numerous years for rebates. Within its existing budget, the LRC has funds to sufficient to rebate these costs as the work is done and approved. The amount of the request increased slightly through the revision process between February and March, from $261,742 to $275,000, to accommodate additional contingency and make that the assistance cap. As outlined, the applicant is required to meet the City's standards for the work, to obtain appropriate warranties, and submit the improvements for inspection and approval. The City would then rebate according to the actual invoice, up to the $275,000. As the applicant is providing the project warranty, the agreement outlines the LRC will provide the financial guarantee ($275,000 multiplied by 1.15). After the warranty period expires, the additional 1.15 of the guarantee would go back to the LRC if it had not been used. Based on a Commissioner suggestion, the applicant agreed to incorporate additional stubs for the electrical conduit that could accommodate future electric vehicle charging station installations. The conduit will already be installed for the decorative and holiday lighting. In February, Commissioners requested additional information related to the project's financial benefit to the City. A significant benefit to the City and the URA will be the re- valuation of the property as a commercial structure. The property at 824 South Street is currently valued only as a single family residential structure. According to Boulder County property records, the building's current value is $549,000, with an assessed value of $39,254 (property tax estimate is $3,621.26). The redevelopment of the property also generates Building Permit Fees and Construction Use Tax, for a project the applicant states is valued at between $4.31 and $4.44 million. For comparison, staff also looked at newer commercial buildings in downtown that have a mix of uses. The existing residential structure has a current value of about $71 per square foot. 950 Spruce Street is a two-story commercial building (19,796 square feet) that includes retail and office uses; it is currently valued at approximately $177 per square foot. Koko Plaza at 901 Front Street is also a two-story commercial building (35,086 square feet) that includes restaurant, retail, office, and service uses; it is currently valued at approximately $208 per square foot. Staff provided some insights on potential tax revenues based on uses being considered by the property owner; that data is available in the March LRC memo. RECOMMENDATION: Discuss any outstanding items related to the proposed agreement with 824 South, Inc. Staff recommends the LRC adopt the attached Resolution approving a Public Infrastructure Assistance Agreement between the City of Louisville, the Louisville Revitalization Commission, and 824 South, Inc. LOUISVILLE REVITALIZATION COMMISSION Agenda Packet P. 8