Revitalization Commission Agenda and Packet 2023 12 20

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It t't LOUISVILLE REVITALIZATION Louisville COMMISSION COLORA.DO • SINCE 1878 SUBJECT: DISCUSSION/DIRECTION — APPLICATION FOR DIRECT TIF ASSISTANCE FOR RADIANCE MEDSPA PROJECT AT 916 MAIN STREET DATE: DECEMBER 20, 2023 PRESENTED BY: AUSTIN BROWN, INTERIM ECONOMIC VITALITY MANAGER SUMMARY: Schlageter Properties, LLC submitted an application for direct financial assistance for their renovation project at 916 Main Street in downtown Louisville. The applicant is requesting a 90% rebate of the expected increase in property taxes generated by the redevelopment over a ten-year period. The applicant purchased the property at 916 Main Street with the intention of renovating the property and opening a new retail and service business, Radiance MedSpa. Radiance MedSpa will offer a variety of state -of -the art nonsurgical medspa treatments along with an assortment of retail products for sale. The project entails a combination of preservation, renovation, and upgrading of the 72- year old existing structure as further described in the applicant's project narrative. The primary undertakings include: • Maintaining the existing storefront in its original configuration with modifications proposed to enlarge the windows and entry door to better support the retail use; • A full interior renovation to meet code and current standards for Class -A commercial buildings including new building systems; • Exterior improvements to the alley -facing elevation; and • Provide for ADA compliance and numerous other upgrades and enhancements. The LRC previously reviewed this request during its May 10, 2023 meeting. The LRC indicated that they supported this request at a high level and directed staff to advance the application to a third -party financial review. Economic & Planning Systems (EPS) completed its review on December 8, 2023. Staff has prepared two draft Property Tax Increment Rebate Agreements with Schlageter Properties, LLC (Attachments #1 and 2) and a resolution (Attachment #3). The first Agreement requires that all payments to the applicant must be made prior to the expiration of the TIF provision. In this agreement, the final payment from the LRC to the applicant would be in 2032 on taxes paid in 2031. The second Agreement allows for the LRC to authorize pledged revenue payments following the expiration of the TIF provision. The LRC will need to make a determination as to which option they would like to include in the agreement. Agenda Packet P. 20