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5 <br /> CITY OF HUGO <br /> MEMORANDUM <br /> TO: EDA <br /> FROM: Bryan Bear, Community Development Director <br /> SUBJECT: Demolition of Carpenters and Antique Store <br /> TIF implications <br /> DATE: February 5, 2010 <br /> As everyone is aware, on January 3, 2010, Carpenter's restaurant burned. The building is <br /> a total loss. The State Fire Marshall has completed his investigation and found no <br /> definite cause for the fire. <br /> The City's Building Official has declared the building a hazardous structure, and has <br /> ordered the building be removed from the site immediately. Cathy Anderson, the owner, <br /> has hired a contractor who is now removing the debris from the site. The City is also <br /> encouraging the demolition of the adjacent antique store building to the north, also owned <br /> by Ms. Anderson. <br /> The properties are part of an approved redevelopment plan for a new restaurant, and are <br /> within TIE District 1-2. Both buildings (Carpenter's Restaurant and the Antique Store) <br /> were inspected by City staff prior to establishment of the TIF District, and both buildings <br /> were deemed substandard. The antique store building has been vacant for some time, is it <br /> not structurally sound, it is not secure from intrusion by the public, and it is possible that <br /> it could also deemed as a public safety hazard in the near future. That building must <br /> undergo an environmental review, and asbestos abatement, prior to its demolition. We <br /> are hopeful the demolition can occur within the next month. Both the City and Ms. <br /> Anderson are desirous of removing the blighted buildings from the property. <br /> Now that the fire has occurred, Ms Anderson must evaluate her financial position before <br /> deciding exactly how to proceed with redevelopment of the property. There are several <br /> possible options, but they all result in the eventual redevelopment of the land. <br /> The EDA has asked the City staff to determine the implications of the building <br /> demolitions on the tax increment financing that may be provided in this area. I have <br /> discussed this in depth with City Financial Advisors, Paul Steinman and Mikaela Huot, as <br /> well as City Bond Counsel, Mary Ippel. They advised me that now that the District has <br /> been created, there is no formal action the City must take prior to either building being <br /> demolished. The expenses incurred may be classified as TIF expenses. It is important to <br /> note that demolition of both buildings was and still is necessary to proceed with the <br />