Title
Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development Agreement with Hope Hardware Building LP for the project at 214 E. Louisiana Street
Summary
MEETING DATE: March 17, 2015
DEPARTMENT: Development Services-Planning
CONTACT: Matt Robinson, AICP, Planning Manager
Michael Quint, Director of Planning
RECOMMENDED ACTION:
· Staff recommends approval of the proposed resolution.
ITEM SUMMARY:
· The proposed agreement with Hope Hardware Building LP and the City of McKinney is intended for the primary purpose of repair and restoration of a historic building façade.
· The redevelopment project, located 214 E. Louisiana Street (The Pantry Restaurant), is a TIRZ-eligible project in the approved Project Plan of TIRZ No. 1. The project falls under the category of Vacant/Underutilized Sites/Buildings as defined in the TIRZ Project Plan.
· Under the policy governing allocation and/or awarding of TIRZ No. 1 funds for Vacant/Underutilized Site/Buildings as defined by the approved Project Plan, reimbursement and or grant requests are limited to a maximum of $25,000 per qualifying project, with a maximum of $100,000 awarded for qualifying vacant/underutilized site/buildings during each fiscal year.
· The applicant is requesting an economic development grant from Reinvestment Zone Number One to assist with the expense associated with making the following improvements to the existing building:
o Façade improvements consisting of foundation repair to the northeast corner of the building, repair of the roof and parapet owing to the foundation issues, and repair and restoration of the brick façade of the structure.
· The applicant will be required to submit a Certificate of Appropriateness to the Historic Preservation Officer for the proposed façade improvements prior to commencing work.
· The applicant shall submit a grant submittal package to staff including all cost and payment documentation. Staff shall verify that the expenditures were made in such amounts prior to any Grant disbursement.
BACKGROUND INFORMATION:
· TIRZ has the authority under Section 311 and Chapter 380 of the Texas Local Government Code to make loans or grants of TIRZ funds for the purposes of promoting local economic development and stimulating businesses and commercial activity within the TIRZ.
· This project has been established as an eligible project in the TIRZ Project Plan under the category of Vacant/Underutilized Sites/Buildings, which is defined as "Relatively smaller projects (under $5.0 million) for the incremental redevelopment of vacant/underutilized Town Center sites or buildings." Such sites are limited to the area shown as Vacant/Underutilized Building Improvement Area shown on Figure 3 of the TIRZ Project Plan.
· At the September 3, 2014 meeting of Reinvestment Zone Number One, the Board approved a resolution providing a policy governing the allocation and/or awarding of TIRZ No. 1 funds for Catalyst Projects and Vacant/Underutilized Site/Buildings as defined in the approved Project Plan. For qualifying Vacant/Underutilized Site/Buildings, reimbursement or grant requests are limited to a maximum of $25,000 per project, with an overall maximum of $100,000 being awarded each fiscal year for Vacant/Underutilized Site/Building project types. Reimbursement and/or grant requests are funded on a first-come, first-serve basis until the maximum fiscal year allotment has been reached. To date for Fiscal Year 2014-2015, there have been no reimbursement or grant requests for Vacant/Underutilized Site/Buildings.
FINANCIAL SUMMARY:
· The FY2014-2015 annual budget for TIRZ No. 1. does not currently reflect funding for Vacant/Underutilized Sites/Building incentives. As such, the TIRZ Board and City Council must authorize a budget amendment to add funding for Vacant/Underutilized Sites/Building incentives before the grant may be awarded.
· At the April 7, 2015 City Council meeting, Staff will seek Council's approval of an ordinance amending the FY2014-2015 annual budget for TIRZ No. 1 to transfer $100,000 from the TIRZ No. 1 Fund Balance for the purpose of adding funding for Vacant/Underutilized Sites/Building incentives.