MEETING DATE:
OCTOBER 14, 2014
SUBJECT:
Title
CREEKSIDE MARKETPLACE AND DMV FINANCING OPTIONS FOR BUILDING PURCHASE, TENANT IMPROVEMENTS, AND RELATED CAPITAL COSTS
Body
Recommendation
Recommendation
1. CONSIDER AND DIRECT the use of excess unassigned general fund reserves for the acquisition of the former Lowe's building.
2. CONSIDER AND DIRECT financing options/use of excess unassigned general fund reserves for funding the necessary tenant improvements and other related capital costs associated with preparing the building for leasing to WinCo Foods, LLC and Hobby Lobby Stores Inc.
3. CONSIDER AND DIRECT financing options/use of one-time opportunity general fund reserves for related capital costs associated with the construction of the new DMV building.
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 of the City
Introduction
At the September 10, 2013 and June 24, 2014 City Council meetings, the City rejected Lowe's official Notice of Transfer which allowed the City option of purchasing the former Lowe's building (Building A) at book value, substantially less than market value. Subsequently, the City finalized and executed lease agreements with WinCo Foods, LLC and Hobby Lobby Stores, Inc. To date, all parties through signed lease agreements have agreed to terms regarding the purchase and construction of Building A and the respective tenant improvements.
On October 31, 2014 the City will be expected to exercise its option and purchase the Building A (formerly Lowe's) at book value as determined on October 31, 2013 in the amount of $4,479,004. Additionally, modifications to existing Building A will need to begin to complete the Landlord's required modifications per the lease agreements with WinCo and Hobby Lobby. The building's front will be modified to accommoda...
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