CRA 11/12/2010 Minutes - Laserfiche WebLink

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Community RedevelopmentAgency November 12, 2010 Page 2 Mr. Randy Newlon, Finance Director, distributed and reviewed the finance report for month ending September 30, 2010 (a copy is on file in the Community Development Department). A brief discussion ensued regarding the status of the approved facade grants for Shoot Straight, Oxford Square and the Grassy Lake Project. Mr. Martin stated that Shoot Straight had a delay in obtaining their building permits and would be requesting an extension to their grant. Mr. Newlon explained that staff made a presentation to the City Commission in November to raise the question about the disposition of the debt associated with the Concord Center property and different alternatives were considered. He said the Commission discussed paying off the debt with reserves from the general fund which would be an expenditure of about $2.3 million. He said the City Commission was not prepared to make a decision and would revisit the issue in December. It was stated that if the City paid the Concord Center debt, it would increase funds available to the CRA. A general discussion ensued regarding the CRA assisting other property owners to increase the tax base. Fifth Item of business: Review of Past Investments and Expenditures for City Center and Lake Concord Properties Mr. Newlon reviewed staffs memo dated November 12, 2010 (a copy is attached and made a part of the minutes). Ms, Lipscomb stated that in discussions with the City Commission, staff has recommended paying off the Concord Center debt. She said the property was purchased for approximately $2.2 million and the buildings were demolition. She said the Seminole County Property Appraiser's website shows the land value at approximately $600,000. She said that a substantial amount of interest is being paid each year based on a property that at one point was valued at $1.7 to $2.2 million. Ms. Lipscomb said based on the current environment the only developer looking at the property is Chef Keogh. She said the City will not recoup the money invested in the site and the carrying cost of the loan at 5% is extremely burdensome. Ms. Lipscomb said the City Commission is strongly considering this option but wants to resolve any assistance needed for the development of the Concord site. Mr. Newlon explained that the payments are made semi-annually for this loan and the first installment for this fiscal year was made October 1, 2010. He said the savings to the CRA budget would occur if the loan is paid off before the next installment due April 2011.