MEETING DATE:
OCTOBER 28, 2014
SUBJECT:
Title
ADOPT RESOLUTION NO. 2014-XX, AUTHORIZING A BUDGET AMENDMENT APPROPRIATING $8,850,425 FROM GENERAL FUND EXCESS UNASSIGNED RESERVES TO CREEKSIDE MARKETPLACE FUND TO PURCHASE BUILDING A AND FUND TENANT IMPROVEMENTS FOR HOBBY LOBBY, LLC AND WINCO, INC
Body
Recommendation
Recommendation
ADOPT a resolution authorizing a budget amendment appropriating $8,850,425 from General Fund Excess Unassigned Reserves to Creekside Marketplace Fund to purchase former Lowe's Building A and fund tenant improvements for Hobby Lobby, LLC and WinCo, Inc.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Economic Development
Planning for the Future
Relevant Department Goal
Continuing to Maintain Fiscal and Financial Health to the City
Introduction
It was recommended at the October 14, 2014 City Council meeting, that Council consider and direct financing options for the purchase of the former Lowe's Building A and subsequent tenant improvement costs for Hobby Lobby, LLC and WinCo, Inc. Consideration of the use of General Fund excess unassigned reserves balances were discussed as a potential funding option and ultimately staff's recommendation. It was determined and directed by City Council that evening that the purchase of the former Lowe's Building A and subsequent tenant improvements would be funded using the General Fund excess unassigned reserves. Lease payments from both Hobby Lobby and WinCo, beginning with occupancy, will be used to replenish the reserve levels accordingly.
Discussion
The City will be required to purchase Building A on October 31, 2014 in the amount of $4,479,004. Under the terms of the lease agreements with WinCo and Hobby Lobby, the City will immediately be required to modify the existing building. The City expects to complete the construction of phase 1 by early spring, allowing the tenants enough time to complete their improvements. ...
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