CRA 11/12/2010 Minutes - Laserfiche WebLink

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Community Redevelopment Agency November 12, 2010 Page 4 Shoot Straight Facade Grant Extension Request Mr. Martin explained that due to a delay in permitting Shoot Straight would be requesting an extension to their grant in January. Mr. Martin asked the Board if they wanted to grant a 6 month extension at this time. Mr. McGregor made a motion to approve a six month extension for Shoot Straight. Mr. Ritchie seconded the motion. The motion passed unanimously by voice vote. PMG's Evaluation Report of the Estado 11 business Plan Estado 11 Commission Work Session: November 15, 2010, 6:00 PM Mr. Martin explained that the CRA hired PMG Associates to assess the business plan and the financials for the Estado 11 project. He said that work has been completed and a copy of the report was included in the meeting packet, Mr. Martin stated that the consultants found that the margins for the start up of this new chain restaurant are very slim, Mr. Martin stated that the rate of return has been calculated at 7.37% for the investors for Estado 11 and the normal expected return might be 10 -12%. Mr. Martin said the real cash return to the investors is when the chain of restaurants is flipped. Mr. Martin said the review indicated that there is no cushion in the financial pro forma that could be used to help develop the site. In response to the Board's question, Mr. Martin stated that the Chef would build a restaurant on the site; however, he wants the City to provide the site development ready. He said that the City received estimates that it would cost approximately $920,000 to prepare the site. He said that would include the fill, stormwater retention, parking and the appropriate level of landscape. Mr. Martin stated that it would be a land lease. Mr. Martin invited the Board to the November 15, 2010 City Commission Workshop to hear a full presentation on all aspects of the project, A general discussion ensued regarding the development of the Lake Concord site, the revenue received from leasing the land and the increase to the City's tax base. Mr. Martin stated the gross annual sales for an established restaurant such as Red Lobster is $3.9 million. He said the Chef projected $2.8 million and the consultants felt that $3.1 million would be reasonable for a start up casual dining chain restaurant. He said it is appropriate for the land owners to share in the success of the restaurant, Mr. Martin said Chef Keogh is recommending if annual sales exceed $3.1 million that the City's take should be about 10% of every dollar beyond the $3.1 as part of the lease. He said this could be another source of revenue that would