Metropolitan Avenue Redevelopment District

Project Area 3 Summary

04/27/2017

Parties: Unified Government (UG) and Argentine Neighborhood Development Association (Developer)

Project Description: Construction of a 4,000 sq ft dual flag quick serve restaurant and an 1,800 sq ft quick serve
restaurant to accompany the existing retail in Project Areas 1 & 2.

History: Initial District created 11/17/11. Commission adopted amendment to master plan on 2/16/12. Planning
Commission determined plan in conformance with amended master plan on 2/21/12. Project Area 1 issued 2013,
Project Area 2 issued 2014.

Project Budget: $3.3 million

Proposed Sources
TIF Property Tax Increment NPV 20 years $585,905
TIF Sales Tax Increment NPV 20 years $553,082
CID Sales Tax (1%) NPV 22 years $302,894
UG Upfront Contribution $500,000
DHHS Federal Grants (Awarded to ABC) $1,230,225
Other Sources / Developer Equity $141,123
Total $3,313,229

Proposed Costs
Site Acquisition $32.000
Site Work $970,000
Building Shells $1,230,000
Soft Costs $850,000
Total $3,300,000*
*Including contingency

Incentives Provided: Pay-as-you-go Community Improvement District (CID) & Tax Increment Financing (TIF) with respect
to both property taxes and sales tax, and an upfront contribution from the UG. Over their respective terms the
CID is anticipated to generate revenues of $302K and the TIFs are anticipated to generate $1.1M.

CID: 1% additional sales tax charged within the district for a 22 year period. Revenues generated are used to
reimburse eligible CID costs incurred by Developer and approved by the UG. (Additional detail to be provided as
part of creation of the CID).

Property Tax TIF: 20 year period. UG controls disbursements which can only be used for TIF eligible
redevelopment project costs.

Sales Tax TIF: 20 year period. Base is established at $0. The increment is 1% of City and .94% of County sales tax
generated within Project Area 1.

UG Upfront Contribution: $500,000 contribution advanced at beginning of project. The contribution will be
repaid within the 20-year life of the TIF and CID.
Prevailing Wage & LBE/MBE/WBE: Applicable to construction only. Prevailing wage paid on all aspects of construction
undertaken by Developer. LMW goals for construction established in Development Agreement. (18% L; 15% M &
7%W)

Project Visuals:

Proposed Site

Site Plan
 Commission Actions
Actions: April 27th, 2017 Commission Meeting.
Adopt a Resolution to set a Public Hearing to:
o Amend the existing Metropolitan Avenue Argentine Tax Increment Financing (TIF) District to
expand the boundaries for proposed Redevelopment Area 3.
o Creation of a Community Improvement District (CID) for the project.
o Enter into a Sales Tax Increment Financing (TIF) Agreement.
o Approve Development Agreement terms to be advanced into a Development Agreement
Direction on proposal seeking a $500,000 upfront UG Contribution to support neighborhood economic
development, with payback provision. (Part of 2016/2017 Commission Initiatives)