CRA 12/10/2010 Minutes - Laserfiche WebLink

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~~ ~~ ~~~ ~ Community Development .Department Director 95 Triplet Lalce Drive, Casselberry, Florida 32~0~ o Telephone (40~) 262-~~00, Ext. 1147 Fax (40~) 262-7746 o Email jnewlon@casselberry.org TI ®: Community Redevelopment Agency Board of Commissioners ~'r®rne Donald S. Martin, Director ®ate: December 10, 2010 ~u~jecte !~~®~e~t Status Rep®~ 11. ILa~e ~®nc®~~ pr®perfy On November 15, 2010, the City Commission held a special meeting to hear staff's presentation regarding a proposal to locate a new casual dining restaurant, Estados 11. Chef Keogh was seeking to understand the terms for land rent and infrastructure costs to build'a $2.5 million dollar restaurant on the property. The proposal was to offer a graduated rent structure beginning at $3,000 per month for the first year eventually increasing to $7,000 per month in year five through year ten. At this land rent schedule, the city would receive over $700,000 for the 10 lease period, and the lease would be renegotiated for another two five year terms. A second component involved the need to address the infrastructure associated with the site, because the property is not development ready. The cost to make the site development ready is estimated at $920,000. Included in this estimate are costs for earthwork, stormwater, utilities, parking and landscaping. Staff hired Phil Gonot at I'MG Associates to analyze the Estados 11 business plan and financials. In the conclusion of his analysis, Mr. Gonot determined that the return on investment for the project was 7.3% as proposed and there was no surplus investment available fio utilize for developing the site. Staff proposed to invest $500,000 of CRA funds directly into developing a pad ready site and to provide the rest of the site development cost as a no interest loan to the project. The loan payback would occur when restaurant gross sales surpassed $3.1 million dollars in sales. The consensus of the City Commission (3-2) was not to invest more money into the site, but to encourage Chef Keogh to develop the site and to build his restaurant at the Lake Concord Site. The complete staff presentation is attached.