Title
Resolution Authorizing an Urban Development Investment Grant, Not to Exceed $1,000,000.00, to Self-Help Venture Fund for Renovation and Revitalization of the Revolution Mill Property at 1200 Revolution Mill Drive
Body
Department: Executive
Council District: 2
Public Hearing: 12/8/2015
Advertising Date/By: 11/25/2015
Contact 1 and Phone: Jim Westmoreland, Ext. 2002
Contact 1 and Phone: Kathi Dubel, Ext. 4579
PURPOSE:
The City of Greensboro has been requested to consider an Urban Development Investment Grant in the amount of $1,000,000.00 to Self-Help Ventures Fund for completion of the rehabilitation and revitalization of the historic Revolution Mill property at 1200 Revolution Mill Drive. This grant will enable a long-term underutilized property that currently sits in varied states of use and disrepair to be renovated and returned to full service, thereby furthering the revitalization of Greensboro and the commercial prospects of East Greensboro.
BACKGROUND:
Located in a City of Greensboro Reinvestment Area in East Greensboro, Revolution Mill is a 25-acre historic mill property under redevelopment into a mixed use, mixed income live-work-create community. Following initial efforts to revitalize the campus that were halted by the Great Recession, Self-Help (a NC-based community development organization) purchased the property in 2012 with the vision to revitalize the campus through historic preservation and economic development. Revolution Mill is currently home to a variety of businesses, a café, and performance and event spaces. The current tax value for the Revolution Mill property is approximately $12,500,000.00. When construction is completed, Revolution Mill will include 520,000+ square feet of office, retail, residential and restaurant space. The development includes flexible workspace for artists and creative professionals, a public history exhibit and two art galleries, and several courtyards and plazas for community events such as outdoor movies and music festivals. The project will also include 142 apartments, 29 of which will be affordable, located alongside Buffalo Creek and a proposed extension of the City’s Greenway.
Self-Help Ventures Fund is planning to commit in excess of $85,000,000.00 of private capital to the renovation of Revolution Mill and to create at least 20 new full-time equivalent jobs exclusive of jobs that will be created by future commercial tenants of the renovated buildings. This investment is contingent upon receiving public participation from the City of Greensboro in the amount of a $1,000,000.00 grant. A $500,000.00 installment of the grant will be paid after $25,000,000.00 of private capital is invested in the project. The remaining $500,000.00 installment of the grant will be paid over a five (5) year period after $40,000,000.00 of capital investment is completed, taxes are paid, and 20 new jobs created are confirmed. The project meets the criteria of the Urban Development Investment Guidelines for Reinvestment Area projects.
BUDGET IMPACT:
$500,000.00 to be paid to the company after $25,000,000.00 of private capital investment in the project is confirmed to be funded from the Economic Development Bond Fund. This portion of the incentive grant is expected to be paid in FY17/18.
$500,000.00 to be paid to the company over a five (5) year period provided that Self-Help Ventures has invested in excess of $40,000,000.000 in this project by year-end 2018 and confirms that at least 20 new full-time equivalent job have been created. The projected incentive grant payments are $100,000.00 for each of the five annual payments and will be funded by the increased ad valorem tax generated by this project. The incentive grant is expected to be paid in FY18/19, FY 19/20, FY 20/21, FY 21/22, and FY 22/23.
RECOMMENDATION / ACTION REQUESTED:
In accordance with the City’s Urban Development Investment Guidelines and GS § 160A-458.3 and other urban development authority, it is recommended that City Council approve the request for a grant not to exceed $1,000,000.00 and authorize city staff to execute a performance agreement between the City of Greensboro and Self-Help Ventures Fund in an installment amount not to exceed $500,000.00 after $25,000,000.00 of capital investment is made and in an installment amount not to exceed $500,000.00 after capital investment of $40,000,000.00, not inclusive of the first grant payment of $500,000.00, is made in the Revolution Mill project to be paid over a five year period after the capital investment is completed, taxes are paid, and 20 new jobs created are confirmed.