Title
Resolution Authorizing an Economic Development Grant from the City of Greensboro to Durban Acquisitions, LLC, for Commercial/Retail Development in the Ole Asheboro Redevelopment Plan Area
Body
Department: Planning
Council District: 2
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Sue Schwartz, 373-2149
Contact 2 and Phone: Dyan Arkin, 433-7377
PURPOSE:
City Council approval is requested for an economic development grant (the Grant) for Durban Acquisitions, LLC, or assigns (Durban), in an amount not to exceed $49,000.00 for support of construction of a commercial/retail building not to exceed 10,000 square feet within the Ole Asheboro Redevelopment Plan area.
BACKGROUND:
In July 2013, after approval by the Redevelopment Commission, City Council approved the sale of 1.5 acres consisting of all of 601 Martin Luther King Jr Drive and a portion of 605 Martin Luther King Jr Drive for $182,500 from the Commission to Durban Acquisitions, LLC, or assigns, for construction of a commercial/retail building with the following conditions:
1. Property shall be used for commercial/retail use;
2. Property shall be conveyed by special warranty deed;
3. All site plans and building plans shall be subject to approval by the Redevelopment Commission of Greensboro;
4. Any zoning relief for intended use shall be subject to approval by the Redevelopment Commission of Greensboro;
5. Proposed use shall be subject to approval by the Redevelopment Commission of Greensboro and the following uses are prohibited;
* Uses that allow on site alcohol consumption;
* Adult entertainment, adult product sales or sexually oriented businesses;
* Gambling/sweepstakes/lottery operations;
6. All building facades visible from Martin Luther King Jr. Drive and Douglas Street shall be a masonry material (brick or architectural block), synthetic stucco or a combination of these materials;
7. Buyer shall deposit 5% bid deposit with balance of purchase price due at closing; and
8. Buyer shall be required to commence construction of approved improvements within six (6) months of Closing.
Durban Acquisitions, LLC has contracted with Family Dollar Stores to build a 9180-square-foot retail store and plans to invest in excess of $900,000 for site work and building construction. They worked closely with staff and the State Historic Preservation Office (SHPO) to add design elements over and above the requirements of the Redevelopment Plan, so the building would complement the historic character of the surrounding community. Approximately 100 residents of the neighborhood signed a petition to support the development.
A Special Use Permit request to construct a non-residential building over 3,000 square feet but less than 10,000 square feet in a TN district was approved by the Zoning Commission on June 9, 2014. The Permit was subsequently appealed by a nearby resident of the neighborhood. The appeal was eventually withdrawn in November 2015, at which time Durban revisited the project with the intent to close on the property and begin construction.
Because of expenses incurred as a result of the appeal, extra requirements imposed by SHPO, and rising construction costs, the project now requires an additional $90,000 to be. Durban was able to absorb a portion of the extra cost, but without City funding assistance would not be able to construct the building as it is currently designed. To assure that the integrity of the design is not compromised and that the expectations of the Ole Asheboro residents are met, staff has identified $49,000 in CDBG redevelopment funds that could be used to assist with the development.
Potential developers have stated that they believe this project will be a catalyst to leverage development of 200-300 multifamily or affordable housing units on nearby publically- and privately-owned parcels, which could provide upwards of $80,000 in additional annual tax revenue.
The requested Grant Agreement would include the following terms and conditions:
1. Reimbursement of costs and expenses paid by Durban for eligible line items related to site preparation and construction of a retail/commercial building at 601-605 Martin Luther King Jr. Drive not to exceed a total disbursement of Forty-Nine Thousand Dollars ($49,000.00).
2. Reimbursements will be made on delivery to the City of invoices or other acceptable proof of payment showing amounts paid by Durban.
3. The developer shall faithfully perform and certify the fulfillment of its obligations as outlined in this Grant Agreement.
4. The developer shall permit the City to inspect and audit all data and records relating to its performance under the agreement.
5. In performance of its obligations under the Grant Agreement, the developer, its agents, employees and assigns, shall comply with all applicable local, State and federal laws, and CDBG program requirements
BUDGET IMPACT:
Community Development Block Grant funds are currently budgeted for support of development within redevelopment areas and will be available for use in Ole Asheboro subsequent to a budget adjustment.
RECOMMENDATION / ACTION REQUESTED:
The Planning Department requests City Council approval to execute an economic development grant agreement with Durban Acquisitions, LLC or assigns, for support of commercial/retail construction, subject to the aforementioned terms and conditions.
COMMITTEE ACTION: This item was referred to Council by the Infrastructure Committee.
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