AGENDA ITEM SUMMARY

Consider approval of enterprise zone agreement with developer, Ultima at Griffin, LLC. The developer constructed a medical office building at 747 S. 8th Street.  Kenwin M. Hayes, Sr.  Executive Director of Downtown Development Authority will address.  Approved

Ultima at Griffin, LLC constructed a 20,000SF medical building that opened in 2013. They were in discussion with staff in 2011 regarding the incentives in the medical overlay district which included property tax abatement and reduced permitting fees. The medical overlay enterprise zone ordinance was not fully adopted until this year, after the medical office was built. The developer is requesting the incentives and benefits as discussed in 2011 which was a part of the financial package that allowed them to proceed with construction of the project.

Staff recommends that the property tax abatement and partial reimbursement of  permitting fees be approved as requested.

The incentive package includes property tax abatement and reduced permitting fees. The enterprise zone will abate the owner's city property tax: Year 0-5 at 100%; years 6 and 7 at 80%; year 8 at 60%; year 9 at 40%; year 10 at 20%. The 2013 city taxes were $6228.07 minus the $4810.46 sales tax credit for a total abatement of $1417.61. The developer paid $12124.96 in fees/permits and staff recommends a partial reimbursement of $6062.48.