04-28-97 Community & Economic Development

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676Ynnuu i 6449146: Community and Economic Development Committee t/w Common, &lazed of di& (ad of Sofia gikad- The April 28, 1997 meeting of the Community and Economic Development Committee was called to order by its Chairperson, Councilmember John Broden at 4:28 p.m. in the Council informal meeting room. Persons in attendance included Council Members: Kelly, Aranowski, Pfeifer, Broden, Varner, Udjak, Coleman, Hosinski, Sniadecki; Attorney Bruce Bancroft, Jon Hunt, Ann Kolata, Mayor Steve Luecke, Citizen Member Sue Hodgson, Ted Fodey, Richard Hill, Don Porter and Kathleen Cekanski-Farrand. Councilmember Broden noted that the first item on the agenda was Bill No. 34-97 which would authorize the issuance of County Economic Development Income Tax Revenue Bonds in the amount of Eleven Million, Nine Hundred and Sixty Thousand Dollars for the purpose of financing an Economic Development project. He also noted that Bill No. 35-97 which is the appropriation of the sale of those bonds would also be heard this evening. For purposes of the committee hearing, both Bills were heard together. Ann Kolata made the presentation. She noted that the project includes a 640 space garage and a 40 space surface parking lot. Additionally,there would be two buildings, four stories each, constructed and known as the Trammel Crow Memorial Facility. The latter building would be requesting a 10 year real property tax abatement. Ms. Kolata noted that currently there is 65,000 square feet of the 900,000 square feet of Class A office space now vacant. There will be eight retail spaces which will front Michigan Street. She noted that with the combination of the surface parking lot and part of the garage, 109 spaces will be earmarked for Teachers Credit Union to satisfy a legal obligation of the City going back to 1984. She also noted that over a 20 year period the bond issue would be paid off at a rate not to exceed 10% and would be paid solely from the Economic Development Income Tax. She also noted that the owners will not own the ground but the City will lease the ground to them in order to construct the buildings. There will be a significant common area with a cost to be charged to each of the owners. Over twenty years, there should be approximately ten million dollars of revenue generated from all sources. Over a forty year period between twenty- four and twenty-five million dollars should be generated and over a fifty year projection approximately thirty-three million dollars should be generated in fees from parking,rental and common area charges. Ann Kolata also noted that if the Council acts favorably on both Bills this evening,that the sale of the bonds will take place in June with construction to begin on June 23, 1997. In response to a question raised by Councilmember Varner, it was noted that the projections include a 70% parking occupancy for the first year with hours from 6 a.m. to 9 p.m. and that currently the parking garages owned by the City have monthly parkers at an 88 % ratio. She also noted that the projections include an 80% occupancy for the retail space. In response to a question raised by Councilmember Broden,it was noted that the lessor for