6.a.
TCEDC Agenda
- Meeting Date:
- 06/07/2023
- Title:
- Discussion and possible action pertaining to a budget adjustment in the amount of $42,200
- Submitted For:
- Kristin Edwards
- Submitted By:
- Kristin Edwards, Economic Development
- Department:
- Economic Development
ACTION REQUEST (Brief Summary)
Discussion and possible action pertaining to an Economic Development Corporation budget adjustment in the amount of $42,200 to allow for the purchase of property located at 607 6th Street, as well as a Phase I Site Assessment of the facility.
BACKGROUND
The TCEDC Strategic Plan identified the establishment of a business incubator as a program goal, and during their workshop in February, the group confirmed this project as a priority for 2023. Initially, the thought was to renovate the former Post Office/Public Works building on 6th Street, but after some initial research and cost estimates, staff estimated that the design and renovations could cost between $1.5 million and $2 million.
Recently, another piece of property became available on 6th Street that would provide an ideal location at a fraction of the cost. The building includes eight offices with space for a reception area, conference room, handouts area and more. The property represents a more cost-effective and faster option for reaching the TCEDC’s goal of establishing an incubator within the 6th Street Revitalization District.
The TCEDC has the opportunity to acquire the property located at 605-607 6th Street to utilize as an incubator. The TCEDC extended an offer to purchase the property for $325,000 which has been accepted by the seller. Further, the City has paid earnest money and an option fee in the amount of $1,500 and now has a 30-day window to conduct inspections and site assessments before purchasing the property.
Currently, the balance of the TCEDC line item for Procurement of Property (801-050-55720) is $288,557.56. Staff is requesting a budget amendment in amount of $42,200 to cover the balance of the purchase costs and other miscellaneous fees including the cost of a Phase 1 environment.
The following items have been requested in the 2023/2024 budget however, the TCEDC Board may want to consider proceeding with these items in the current year’s budget at a subsequent meeting as follows:
$300,000 to cover cosmetic repairs as well as the cost of furniture, fixtures, and equipment (FFE) for the facility, in order to allow staff to begin the process of preparing the facility this fiscal year; and
$5,000 to support promotional events and marketing of the new facility in order to generate interest/attract potential tenants.
Recently, another piece of property became available on 6th Street that would provide an ideal location at a fraction of the cost. The building includes eight offices with space for a reception area, conference room, handouts area and more. The property represents a more cost-effective and faster option for reaching the TCEDC’s goal of establishing an incubator within the 6th Street Revitalization District.
The TCEDC has the opportunity to acquire the property located at 605-607 6th Street to utilize as an incubator. The TCEDC extended an offer to purchase the property for $325,000 which has been accepted by the seller. Further, the City has paid earnest money and an option fee in the amount of $1,500 and now has a 30-day window to conduct inspections and site assessments before purchasing the property.
Currently, the balance of the TCEDC line item for Procurement of Property (801-050-55720) is $288,557.56. Staff is requesting a budget amendment in amount of $42,200 to cover the balance of the purchase costs and other miscellaneous fees including the cost of a Phase 1 environment.
The following items have been requested in the 2023/2024 budget however, the TCEDC Board may want to consider proceeding with these items in the current year’s budget at a subsequent meeting as follows:
$300,000 to cover cosmetic repairs as well as the cost of furniture, fixtures, and equipment (FFE) for the facility, in order to allow staff to begin the process of preparing the facility this fiscal year; and
$5,000 to support promotional events and marketing of the new facility in order to generate interest/attract potential tenants.
ANALYSIS
Approve a budget adjustment in the amount of $42,200 to finalize the purchase of property located at 607 6th Street, as well as a Phase I Site Assessment of the facility and other miscellaneous costs to close on the building.
ALTERNATIVES CONSIDERED
LEGAL ONLY
Resolution No. 2023-13