6.C.(1) Staff Report Disposition (Oliver Industrial Park)

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With the acquisrlion of /his property in the form of a donation or a! a nominal price, River Bend hose Specialty will forfeit the opportunity to apply fbr real estate property iax abatements. Staff Comments: 1. The lots that River Bend hose wants to purchase are identified as Lots 7 & 8 on the attached marketing materials for the Oliver industrial Park. On the legal plat they are identified as Lots 8 & 9. Any Commission action to accept this proposal and sell the property should acknowledge the different parcel numbers. 2. A 10% Faithful Performance Guaranty was not submitted with the proposal. 3. The required Statement of Qualifications and 1~ inancial Responsibility was submitted and reviewed by staff. 4. The required Statement for Public Disclosure was submitted and reviewed by staff. 5. The required Affidavit ofNon-Collusion has been submitted by both Mr. Betz and Mr. Slavinskas. 6. Mr. Slavinskas states for the record that he is a Board Member of the Urban Enterprise Association. 7. The proposed Site Plan and building elevations were submitted with the proposal. The elevations are preliminary and staff would like to work with them on the south elevation. It is our understanding that additional architectural detail and/or windows will be added to that elevation. 8. Landscaping of the property has been discussed with River Bend Hose but the detailed landscaping plan was not submitted with the proposal. This will need to be provided and finalized. 9. Although River Bend Hose has requested that they purchase the land for $0 or a nominal amount, they have agreed to not request real property tax abatement for this development. "The value of the tax abatement is estimated to be more than the value of the property. The land value would be in the range of $20,500 - $25,500 per acre ($160,720 - $] 99,920). Based on a $2.5 million project cost, the value of the tax abatement would range between $250,000 and $300,000. Staff Recommendation: "The staff recommends that the Commission accept the proposal from River Bend hose Specialty, Inc/ 3G Properties (partnership) and direct the Commission's attorney to prepare the necessary documents to close this transaction. This is an exciting project. River Bend Hose is going to spend more than $2.5 million on a 75,000 s.f. building that will consolidate its operations from three buildings into one. It not only provides for their current business needs, it provides room for them to expand the building in the future. River Bend Hose is a local business that has shown steady growth in business and employees during its existence. Their financial statements indicate a strong company. This development will be a strong addition to the Oliver Industrial Park.