10-28-2015 Council Workshop Minutes

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MINUTES CITY COUNCIL OCTOBER 28, 2015 and the City Administrator, Kaufman reported that there was discussion at that meeting about whether or not the City could provide some assistance on the redevelopment project. Kaufman presented the Council with a prototype of the LA Fitness which consists of a 37,000 square foot facility. Kaufman reported that the current building is about 50,000 square feet. That building would be demolished and replaced with the LA Fitness prototype presented. Keis asked about the possibility of additional buildings on the site. The City Administrator noted that the former Bally's site consists of two lots, the most eastern lot having been used for parking. That eastern lot is 1 1/2 to 2 acres in size. Kaufman again noted future plans for an 8,100 square foot retail building on this lot. Kaufman again indicated that they would also be purchasing the Arby's and Aldi Foods properties. He indicated that Arby's had some plans for upgrading their building, but these plans have been put on hold by Arby's. Kaufman also indicated that the Arby's business is performing well, and it would be their expectation that the leases for Arby's and Aldi Foods would be renewed. The City Administrator indicated that any Tax Increment Financing (TIF) assistance would be for the LA Fitness parcel and not the others. Mark Ruff explained that there is the potential to include all three buildings in a TIF District. He reported that with a 25 -year district, there would have to be proof that 50% or more of the buildings are substandard. That analysis would have to be done by an architect and would involve a review of compliance with current State building codes including estimates to bring the buildings up to code. The Administrator indicated that he believed there would be no problem proving that the former Bally's building is blighted. Ruff indicated that to include all three buildings in the TIF District, at least two would have to be blighted. Montour asked if another building is constructed on the eastern lot, if that would add value to the TIF District. The Administrator indicated that another building would result in more TIF dollars for the District. The Administrator reported that the City cannot directly help with the property tax situation. However, there would be eligible qualifying costs that the City could provide TIF assistance for. Keis asked about a 25 -year TIF District versus 15 -year. Ruff reported that the City can determine the term of the district. Keis commented on the City providing TIF assistance in order to attract a project such as this, while other cities may get the project without providing assistance. Kaufman indicated that LA Fitness is firm on not paying more than $4.50 per square foot in property taxes, and will not move forward with the project without this relief. 2