Title
Resolution to Amend Resolution No. 273-13 Authorizing the Use and Appropriation of up to $165,165.00 to Reimburse Windsor Development Group, LLC for the Design and Construction of Public Water and Sewer Infrastructure Improvements to Facilitate the Industrial Development of Sites Located at 3818 Burlington Road
Body
Department: Executive
Council District: 1
Public Hearing: July 19, 2016
Advertising Date/By: July 7, 2016
Contact 1 and Phone: Jim Westmoreland, City Manager - City of Greensboro- 373-2002
Contact 2 and Phone: Kathi Dubel, Manager -Economic Development & Business Support - 373-4579
PURPOSE:
The City of Greensboro has been requested to amend an economic development reimbursable grant in the amount of up to $165,165.00 to Windsor Development Group, LLC for the reimbursement of public water and sewer infrastructure improvements in Wendover Industrial Center, located at 3818 Burlington Road. The grant is for the purpose of creating jobs and bringing new industrial development opportunities to east Greensboro.
BACKGROUND:
Windsor Development Group, LLC serves as the developer/agent for the investment group that acquired/developed Wendover Industrial Center, a 44 acre master planned site at 3818 Burlington Road in the City of Greensboro.
In order to drive this development forward in east Greensboro, public participation is necessary to assist in bringing public water and sewer improvements into the area. Total estimated cost of providing these the public water & sewer infrastructure improvements is $165,165.00 to extend water and sewer to service Lots 1 - 5.
The project is projected to immediately enable an industrial client to relocate and expand their operations and improve access and availability for additional shovel ready sites for future development. Windsor Development Group, LLC and the investor group are planning a private drive extension to access additional lots. Projected users for the remaining lots include manufacturing, light industrial and warehousing with additional taxable investment and new jobs in the City of Greensboro. The development of Wendover Industrial Center will provide much needed industrial sites to recruit new industrial users that will create significant new jobs and capital investment in Greensboro
Windsor Development Group, LLC will make the improvements and be reimbursed by the City. Reimbursement by the City is contingent on improvements being completed and meeting City standards. The project design and budget have been provided to and approved by the City of Greensboro Water Resources department. The development team does have substantial experience and a successful track record in developing successful projects of this nature.
On September 17, 2013, the City Council approved a reimbursement in the amount not to exceed $115,488.00. The developer is requesting an increase of $49,677 to an amount not to exceed $165,165.00 due cost increases and changes to final design and scope provided in the engineered plans. Because the requested amount has increased by $49,677, the developer will be required to create 4 new full-time equivalent jobs rather than 3 that were previously required. The developer is also seeking an extension of time to create the new full-time equivalent jobs from September 17, 2016, to September 17, 2018, because there was additional site preparation that had to be completed that was not anticipated in 2013.
BUDGET IMPACT: A total of up to $165,165.00 to be paid in FY16/17 after the public water & sewer infrastructure improvements have been made. The reimbursement will be funded by the City’s Water Resources Economic Development Fund - Account 503-7022-06.6017.
RECOMMENDATION / ACTION REQUESTED:
In accordance with the City’s Urban Development Investment Guidelines and N.C.G.S. § 158-7.1, it is recommended that City Council approve the request for reimbursement of capital investment required to design and construct public water & sewer infrastructure necessary for industrial development and authorize city staff to execute a performance agreement between the City of Greensboro and the company in an amount not to exceed $165,165.00 to be paid in FY16/17 after the capital investment has been completed. The agreement will have a claw-back provision that requires that the reimbursement be repaid to the City if at least 4 full-time equivalent positions have not been created by September 17, 2018.