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4. C. 6.
Steve Commons, Assistant City Manager of Administration
Approval of a Development Agreement with Film Exchange Row, LLC for the Rail Spur Project in Downtown Edmond; $700,000.
The project involves the economic development, redevelopment and historic rehabilitation of property located northeast of the intersection of 2nd Street and Santa Fe Drive, which is being referred to as the Rail Spur District. The project contemplates turning the area into up to four restaurants and with entertainment venues available.
The developer will provide at least 14,000 sq feet of restaurant space, private event center, two historic rehabilitation projects, extensive patio seating and landscaped green space. The developer is projecting that the restaurants will produce at least $5 million dollars of retail activity in an area of Edmond that would be considered under developed and has not produced this level of economic activity for a long time.
The City will work with developer to construct public parking spaces and paved alley ways through and adjacent to the development. For these public improvements, the City will provide up to $700,000. The City's funding is coming from the Edmond Economic Development Fund that was established to help existing businesses grow or attract new businesses. Recommendations for the use of these funds comes from the Edmond Economic Development Authority (EEDA).
Though the parking development will greatly benefit the developer, with other investment occurring on the west side of downtown Edmond, we are looking for opportunities to provide more parking. This lot can also be overflow parking with sidewalk access from the Festival Market area.
With the development of the area, the developer would be responsible for paving the alley. This project estimate for the cost of paving the alley is around $150,000. The City will provide the alley at no expense to the developer if they maintain $5 million in retail sales over a 6 year period. (The details of this arrangement are in the attached Development Agreement along with the amount of repayment due from the developer if the sales do not attain the $5 million retail sales target.) Assuming the developer maintains the $30 million in retail sales over the six year performance monitoring period, the 3.75% local sales tax would collect $1,125,000.
Upon approval we will work with the developer in their development of plans for the parking lot and alley improvements which they are responsible to provide in the agreement.
Coordinating the public improvements with the owners work on private side of the development.
The EEDA reviewed and recommended the Development Agreement at the regular meeting on April 16, 2019.
Approval of the development agreement.
Posted City Council agenda.
Budgeted Item Y/N or N/A:
This expenditure is budgeted in the proposed budget you will be considering for FY19-20.
125006-8404 Edmond Electric Economic Development Fund - Land Betterments $700,000
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