CC Meeting: May 5, 2015
Date: April 29, 2015
To: Leonard Martin, City Manager
FROM: Peter J. Braster, Senior Development Manager
Title
Consider A Resolution Authorizing The City Manager To Enter Into A Redevelopment Incentive Agreement With Joe the Baker, LLC For 1104 Elm Street In An Amount Not To Exceed $55,000.00.
Body
BACKGROUND:
In June of 2007, City Council adopted the Retail Re-Development and Rehabilitation Grant Program ("Grant Program") to provide financial incentives to existing retail shopping centers and other retail facilities for enhancements and/or redevelopment. On September 3, 2013 the City Council amended the program to include Historic Downtown Carrollton. The program is attraction/retention-based with the goal of attracting new business to Downtown Carrollton.
City staff has been working with Joe Baker for four months to locate his bakery in Downtown Carrollton. Known as 'Joe the Baker', Mr. Baker was looking for a space that would allow him to expand his baking operation supplying an expanding list of North Texas restaurants; provide a permanent place to continue teaching baking classes; and provide a small retail bakery and catering operation. Staff presented the benefits of locating Joe the Baker in Downtown Carrollton at the April 21, 2015 City Council TOD Sub-Committee meeting. The members of the Sub-Committee unanimously agreed that the incentive agreement should go to the full Council for approval.
The redevelopment of the bakery/restaurant meets the goals of the Grant Program, based upon the criteria established by City Council. Mr. Baker has requested a grant from the City under the terms of the Program. The requested grant would provide funds for the construction of permanent improvements to the building, including, but not limited to, utilities, interior finish-out, signage, and minor façade improvements. The building's landlord is contributing a $16,500 package of tenant improvements, FFE, and rental assistance in addition to the City's incentive. Mr. Baker will be funding remaining FFE needed to successfully operate. In accordance with the Grant Program, the grant is reimbursement-based.
The property is located within a Neighborhood Empowerment Zone. Therefore, building permit and inspection fee waivers for the improvements and other contractor registration and licensing are included as part of this incentive package. All applicable building permits, contractor registrations and licensing must be obtained prior to the commencement of any construction work. In addition, all applicable City health inspection permit fee waivers will be included as part of this incentive package.
FINANCIAL IMPLICATIONS:
Under the Grant Program of the City, Joe the Baker, LLC (Company) is eligible for a grant not to exceed $55,000.00 for the timeframe of June 1, 2015 to December 31, 2015.
IMPACT ON COMMUNITY SUSTAINABILITY:
In accordance with the Economic Development plan of enhancing the tax base through redevelopment and business attraction, this project meets all criteria.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends City Council approval of a resolution authorizing the City Manager to enter into a redevelopment incentive agreement with Joe the Baker, LLC for 1104 Elm Street.