07-13-15 Community Investment - Laserfiche WebLink

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Gavin suggested bill 15 -58, 15 -59 and 15 -62 be heard together for purposes of presentation and consideration. These bills are related to a spec built distribution facility of 200,000 sq. ft. for GLC Portage Prairie representing an investment of over $7.25 million. Chris Fielding from the Cl Department presented the particulars warranting an 8 year real property abatement. The abatement petition itself was contained in bill 15 -58. Bill 15 -59 was a resolution requesting a 5 year lease between GLC and the City. Mr. Fielding was assisted by Richard Deahl, an attorney representing GLC. They explained the lease with the City at a greatly reduced rate per sq. foot, significantly below market rate was necessary to mitigate the risk for GLC. Typically lenders are reluctant to lend money on spec buildings such as this without the guarantee of a lessee. According to Chris Fielding there is a ready market for this type of space. As it is leased the City portion will be lessened ultimately to zero. Bill 15 -62 a companion to the others represents the Council giving approval to the Board of Public Works to sell the City owned parcels on which the distribution facility would be built. At the committee level only one set of motions was required to forward all three bills. Dr. Ferlic made the initial motion to forward 15 -58, 15 -59 and 15 -62 favorably to full Council. Gavin Ferlic offered a second. All supported. Brock Zeeb made the presentation for the next bill on the agenda 15 -60. This was a resolution to meet a state law requirement of TIF funds to the various taxing units in Erskine Village allocation area 3. After the brief presentation there being no questions Dr. Varner motioned a favorable recommendation. Dr. Ferlic followed with a second which all supported. The final item on the agenda was bill 15 -61 which was a bond refinance request for approval. Randy Rompola, an attorney representing the Redevelopment Authority explained that if these 2008 Eddy Street Bonds were refinanced the savings due to the lower interest rate over the remaining 18 year life of the bond would be over 3 million dollars. Again Dr. Varner made the motion to send favorably. Dr. Ferlic seconded and all affirmed. There being no other business, Gavin Ferlic adjourned at 4:02 p.m. Respectfully Submitted, Gavin Ferlic, Chairperson Community Investment Committee