Agenda - Economic Development Authority - 07/13/2017

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Mr. Kuker provided additional details on the building and how it could be converted if Adrenalin leaves after their seven-year lease. He noted that the structure itself would be almost identical, with the exception of the dock doors that would not be installed. Chairperson Steffen asked if TIF is not available because of the recreational use. Economic Dev. Mgr/Assistant City Administrator Brama confirmed that recreational uses are not available for TIF. Mr. Kuker noted that the rent would be slightly smaller for this second building because there is a lesser cost to build out the building. He noted that the cost for rent will be higher than the tenant was paying at their current location, but confirmed that the tenant does have leases in place for this site which will be larger than their current location. Chairperson Steffen noted that the timeline appears very tight. Mr. Kuker agreed that the timing is very tight as the tenant has leases that start on January 1, 2018. He stated that in essence the tenant is paying rent for 12 months of the year while they will most likely only use the facility six months out of the year, as the soccer will be outdoors in the warmer months. He noted that the tenant will be exploring options for additional activities that could occur during the warmer months. He confirmed that the tenant is currently not in a location, as the site he was previously located in has been closed. Chairperson Steffen asked if the developer could build the building within the timeline. Mr. Kuker stated that the closing will occur on June 27th and he has received permission to begin grading. Community Development Director Gladhill noted that it is a very aggressive schedule and some preapprovals can be given. He noted that the more they deviate from the regular schedule, the more risk that will come. He stated that the process can be sped up, but acknowledged that the developer is willing to take on the risk and liability regarding grading and stormwater. He stated that staff will do what they can to be flexible. Mr. Kuker acknowledged that there is risk in expediting the timelines, and that risk would fall on him as developer. He stated that Adrenalin would bring in additional traffic to The COR. He noted that if there are additional costs that arise from speeding this process up, those costs could be split up between the future pads that will be sold. Member Williams asked if that sensitivity would be part of the business subsidy analysis. Economic Dev. Mgr/Assistant City Administrator Brama confirmed that would be included in the review. Chairperson Steffen stated that he loves the project and the signage. Economic Development Authority/June 8, 2017 Page 6 of 9