Consider EDA Recommendation Regarding Retail Space in Flaherty and Collins Apartment Project

At a special EDA meeting on February 24th, the EDA approved a RLF Loan and SAC/WAC assistance for the Wells Catering/Falls Cafe project in The COR.  As a part of that approval, the EDA recommended that the HRA reconsider its requirement in the Flaherty and Collins apartment project for retail space.  This was due to the identification of a potential conflict with a similar restaurant's interest in the space and the competition with The Falls.  Under the current agreements with Flaherty and Collins, the developer is required to construct 3,000 square feet of retail space, with the HRA back-stopping the lease of the space 12 months post-occupancy at a rate of up to $16 per square foot  for a period of 3 years.  The total potential HRA liability for the retail space is $144,000 over the three-year period. 

 

At its regular meeting of March 8th, the City Council approved the RLF loan and SAC/WAC assistance for The Falls Cafe/Wells Catering project.  There was additional discussion regarding the potential conflict of two similar restaurant users in The COR. 

 

The Development Management Team's  position on this issue is that the inclusion of retail space in the Flaherty and Collins project is an matter of use versus a specific user for the space.  It has long been the goal for this mixed-use project to have retail activity on the corner of the municipal plaza, across for the municipal center.  Additionally, it is the Development Management team's position that locating residences on the corner of the plaza is not a good fit for the space.  This space, with the construction of the rail station and other uses across the street, will become a high-activity area that is ideal for a limited retail use. Therefore, it is the recommendation of the Development Management Team that the HRA continue in its agreement to require the construction of 3,000 square feet of retail space in the Flaherty and Collins project.  The Development Management Team further recommends that effort be put forth by the HRA and the Development Management Team to assist in securing a tenant for the retail space in anticipation of a Fall 2012 occupancy. 

 

 

 

 

 

None required. 

The DM Team recommends that the HRA continue in its agreement to require the construction of 3,000 square feet of retail space in the Flaherty and Collins project. The Development Management Team further recommends that effort be put forth by the HRA and the Development Management Team to assist in securing a tenant for the retail space in anticipation of a Fall 2012 occupancy.

Funding for the retail rent back-stop would be provided in the HRA budget.  The first year of obligation would most likely be late 2013 if the space were not leased. 

Direct the DM Team with regard to the Flaherty and Collins agreements for the construction of 3,000 square feet of retail space and assistance is securing tenants for the space in anticipation of a Fall 2012 occupancy.