CRA 01/14/2011 Minutes - Laserfiche WebLink

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Community Redevelopment Agency January 14, 2011 Page 4 opinion the City changed in the discussions to make the Chef responsible for half the site development costs as a loan as opposed to the CRA doing the site preparation. Mr. Ritchie said that we need to decide if this level of capital should be invested to bring this type of business to the corridor and the Chef needs to decide from a business standpoint if the project is feasible. A general discussion ensued regarding the difference between a grant and a land lease, negotiation options and the need for a budget amendment. Mr. Daigle suggested that Mr. Martin ask Chef Keogh directly if he would redo his numbers if the site was improved 100%. Ms. Sandi Solomon, City Commissioner, 6 Bayberry Branch, Casselberry, Florida came forward, In response to Ms. Solomon's question regarding possible mortgages and liens on the property if the restaurant failed, Mr. Ritchie stated that the City owns the land and any changes to the building would require approval from the City. Mr. McGregor explained that the only thing that Chef Keogh could encumber is the FF&E (furniture, fixture and equipment). Mr. John Casselberry, 700 South Lost Lake Lane, Casselberry, Florida came forward. Mr. Casselberry said that he attended the meeting when Chef Keogh withdrew his project, He felt the City made a lot of concessions on the land costs and Chef Keogh may have based his business on too large of a building or an extraordinarily expensive construction costs. He thought that there may be other ways to save money other than the land and suggested the City review his business ideas to see if there is too much money invested in the building. Mr. Ritchie made a motion that the CRA ask for budgetary authority to have $920,000 available for site improvements with no loans involved for the Estado 11 project. Mr. Daigle seconded the motion. A general discussion ensued regarding who would do the site improvement work and clarification of Mr. Ritchie's motion. Ms. Lynch explained that typically leased property is pad ready and a purchase is sold "as is" and the property owner takes on the infrastructure cost. Mr. Ritchie said the CRA is currently paying the debt service on the land which is facilitating the redevelopment of the land; however, once the redevelopment of the land takes place it is no longer a redevelopment activity but a City activity. He said that he did not feel that it would be a proper expenditure of CRA redevelopment