Title
Resolution Authorizing Sale and Redevelopment of the Renaissance Center
Body
Department: Legal
Council District: 2
Public Hearing: April 15, 2014
Advertising Date/By: April 3, 2014 and April 10, 2014
Contact 1 and Phone: Tom Carruthers, Interim City Attorney, ext 2320
Contact 2 and Phone: Chris Wilson, Interim Assistant City Manager, ext 2002
PURPOSE: To sell Parcel A and provide an option to purchase Parcel B, both of which are a portion of property located at 2521/2523 Phillips Avenue to Self Help Ventures Fund pursuant to a redevelopment contract. Parcel A of this land consists of approximately 5.35 acres and is valued at $490,000. Parcel B consists of approximately 2.56 acres and is valued at $167,000.00. The option to purchase Parcel B must be exercised within three years of the closing on Parcel A.
BACKGROUND: Redevelopment activities at the Renaissance Center are intended to build on the community-driven 2003 Neighborhood Center Report, which envisioned a mix of business, government, and community activities on the site that would provide quality one-stop shopping and dining, life-long learning and recreation, all-purpose health care, and family fun.
The original 9.7+-acre property was purchased in January 2008 to provide land for construction of the new McGirt-Horton Library. Library bond funds, Community Development Block Grant (CDBG) funds and local neighborhood renewal bond funds were used for the $1.25 million site purchase.
The EDBS office publicly requested proposals for redevelopment of this facility during October, 2013. They received one proposal from Self Help Ventures Fund on November 1, 2013.
Both Parcel A and Parcel B is a portion of the 9.76 acres described in Deed Book 6839, Page No. 1520, of the Guilford County Registry, excepting the portion of the property which is the McGirt-Horton Library tract. This sale and renovation is pursuant to Section 160A-457 of the North Carolina General Statutes and other relevant statutes.
Contingent on approval by Council, the Parcel A will be sold to the Self Help Ventures Fund for $490,000.00. If Self Help Ventures Fund exercises the option to purchase, Parcel B will be sold for $167,000.00. The price for this property is equal to the appraised value of the property. Self Help Ventures Fund will receive a $2,000,000.00 performance based, forgivable loan from the City for costs of renovation. Self Help will invest up to an additional $2.5 million to build out the Center. An architect will prepare a full exterior makeover proposal for the property and will set standards for all tenant spaces. Self Help will commission contractors to renovate the building to these specifications. Self Help will reserve up to 10,000 SF for a grocery store. Self Help will negotiate with Renaissance Community Co-op to occupy this space. Self Help will establish a community advisory committee to advice on development and desired tenancy. The project will involve an overhaul of the parking lot, and upgrade of the common areas and of the grounds of the facility. A minimum M/WBE goal of 25% for all construction work is established for this project. Timetable for renovation is anticipated to be 18 months.
The specific terms of this acquisition and renovation will be provided to Council prior to the meeting.
BUDGET IMPACT: Not to exceed $2 million payable from Economic Development bonds, Redevelopment bond funds and the Economic Development Fund.
RECOMMENDATION / ACTION REQUESTED: Council is asked to consider the sale, option to purchase and forgivable loan for the Renaissance Center to the Self Help Ventures Fund.