Title
Ordinance in the Amount of $534,233 Amending the Neighborhood Redevelopment Fund Budget for the Appropriation of Funds for the Renaissance Shops at Phillips Avenue Development Project
Body
Department: City Manager's Office
Council District: 2
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Kathi Dubel, Manager-Economic Development & Business Support 373-4579
Contact 2 and Phone: Terri Jones, Assistant City Attorney 373-2320/Richard Lusk, Finance Director 373-2077
PURPOSE: To amend the Neighborhood Redevelopment Fund budget in the amount of $534,233 to fund a portion of the economic development loan to Self-Help Venture Funds (SHVF) for redevelopment of the former Bessemer Shopping Center as the Renaissance Shops at Phillips Avenue.
BACKGROUND: On April 14, 2014 City Council authorized the sale of the former shopping center site to SHVF for $490,000 ($266,169 of this amount must be repaid to the CDBG fund for future use) and a forgivable loan of up to $2.0 million for redevelopment of the property. SHVF will invest at least an additional $2.5 million in the project. The Economic Development Loan Agreement was executed and the property transferred on January 30, 2015. The first draw on the loan of $400,000 will be processed in June 2015. Remaining progress payments of $400,000 each will be made as conditions of the loan agreement are met. The loan will be funded from the following sources:
Economic Development Fund $ 861,450
Economic Development Bond Fund 300,000
Redevelopment Bond Fund 838,550
Total $2,000,000
BUDGET IMPACT: Funding for this development loan will be made available from the Economic Development Fund FY14-15 and FY15-16 Budgets ($861,450), the Economic Development Bond Fund Budget ($300,000), and the Redevelopment Bond Fund Budget ($838,550). A budget ordinance amending the Redevelopment Bond Fund in the amount of $534,233 is needed to appropriate eligible proceeds from the property sale ($223,831) and available redevelopment program revenue ($310,402) for the project. A budget adjustment is required to move funding into the correct accounts.
RECOMMENDATION / ACTION REQUESTED: The City Manager's Office requests City Council approval of the attached budget ordinance amending the Redevelopment Bond Fund Budget in the amount of $534,233.