Library Block Project CITY COUNCIL PRESENTATION
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1 Library Block Project CITY COUNCIL PRESENTATION
2 Community Vision Downtown Pla+eville is a vibrant place and the cultural heart and iden7ty of the community. A diverse business mix is thriving and profi7ng. Arrival to the downtown district is dis7nc7ve and appealing and parking is easy to find. Visitors discover reasons to linger and explore and more people choose to live downtown
3 Community Vision The Library Block is a highly visible gateway to downtown and the UWP area
4 History 2009 Pla+eville Library Board began inves7ga7ng Library expansion or new construc7on. Spring/Summer 2010 Library Director presented Site Evalua7on and Selec7on Study to City Council. Mo7on from City Council not to accept Site Selec7on Study recommenda7on. (Queen B Radio site). January 2011 Downtown Development Plan was adopted by City Council. The Library Block was iden7fied as a future redevelopment site with op7ons of including a new library, underground parking, commercial space, student housing, or office space. (Page 49, Site #6) Fall 2012 Library Board and City Council decided to hire a grant writer to seek funding to conduct a feasibility study. WEDC Planning Grant awarded to City of Pla+eville in January June 2013 Representa7ves from the Main Street Program, Library Board, SWCAP, City, WEDC, and UWP Real Estate Founda7on began mee7ng to talk about pursuing redevelopment of the Library Block. 4
5 History Summer/Fall 2013 Redevelopment Feasibility Study for Pla+eville Library Block Project was completed. Developer Troy Hoekstra of United Development Solu7ons expressed an interest in the project. June 2014 City Management Team began mee7ng to work on details of redevelopment project. Architects presented ini7al plans to the Plan Commission. January 2015 A+orneys started working on development agreements. April 2015 Common Council agrees to development agreement but revisions are needed to sa7sfy New Market Tax Credit and lending requirements. June 2015 Common Council signs le+er of intent with respect to lease payments. October 2015 Common Council reviews revised development agreement.
6 Development Proposal v A public- private partnership to redevelop the Library Block v Demoli7on of six exis7ng buildings v Construc7on of two larger buildings a 22,000sqf commercial space (library) and a 72 room Holiday Inn Express (43,000sqf) v Renova7on of the current public library space into a SWCAP health clinic v 55 underground and 42 surface parking lot spaces
7 Library Proposal
8 Library Proposal
9 Library- 1 st Floor v Check Out, Returns, and Informa7on Services v Adult collec7ons- Large Print, Fic7on, Non- Fic7on, and Media v Technology- Public Access Computers, copy machine, scanner, printer v Periodicals- Magazines, local and na7onal newspapers v Large Group Study Room- for classes, small events, and public use v Quiet reading areas- sca+ered tables and lounge chairs for v Poten7al for self- serve coffee area, art displays, and self- checkout sta7on
10 Library 1st Floor
11 1st Floor- Looking onto Chestnut St.
12 Library- 2 nd Floor v Community Mee7ng Room v 2 study rooms v Board Room v Administra7ve offices v Children s collec7ons- Print and media v Children s program room- The Imaginarium v Interac7ve early literacy area, including computers v Homework sta7on and Tween area v Dedicated Teen space
13 Library 2 nd Floor
14 Library 2nd Floor
15 Development Financing Partner Equity - $3,600,000 New Market Tax Credits - $3,758,000 City TIF Contribu7on $2,000,000 Bank Loan - $6,818,000 Total Project - $16,176,000 Development Financing ** The City would also contribute the current library site/building, conserva7vely valued at $800,000 Partner Equity City TIF New Market Bank Loan
16 Development Financing v Redevelopment proposals of this size ooen require financial assistance to help pay for addi7onal costs associated with site acquisi7on, demoli7on costs and, in this case, underground parking. v City engaged Elhers, Inc to conduct an independent financial analysis to validate the need of requested public support. v The City s 2 million TIF investment will be recaptured through the increased taxes generated by the project. v Development Agreement includes guaranteed tax increments ie: the Developer is guaranteeing a minimum amount of taxes regardless of the assessed value of the property. v The total value of the guaranteed tax increments is $2.685 million (20 payments from 2017 through 2036). v The remaining $315,000 of the total obliga7on of $3.0 million can be captured through district or donor district TIF revenue.
17 Lease Agreement v New market tax credits can only be used for private development. Market- rate lease is required during the 7- year life of the credits. v The City s lease payments will be $1.5 million over 7 years. v The lease can be extended up to an addi7onal year, if necessary, to complete the close out of the new market tax credits. v The lease payments will be paid through a combina7on of poten7al tax increment from the project, district or donor district TIF revenue and general tax revenue. 7-8 Year Lease New Library Constructed Library is Gioed to the City
18 Development Agreement Risk No guarantee that the library will be giged to the City at the end of seven years v Legal and financing requirements associated with projects won t allow mandatory gioing language in the agreement v There are strong financial incen7ves for the owners to gio the library v The City retains the right to con7nue leasing and first right of refusal to purchase in the event the library is not gioed Bankruptcy v Pro forma review by Ehlers, in addi7on to New Market Tax Credit and bank lenders. v The bank has first lien on the library property. v Investors have given personal guarantees to the City to cover guaranteed tax payment obliga7ons.
19 Project Timeline November 2015 January 2016 v Approvals completed v Hazardous material abatement v Demoli7on of exis7ng buildings February 2016 November 2016 v Building construc7on for hotel and library December February 2017 v Clinic remodel
20 Next Steps v November 10 Final Council Approval v November 10 Resolu7on for Bond Sale v Lease agreement v Planning commission approvals
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GUJARAT NRE COKE LIMITED CIN:L51909WB1986PLC040098 Registered Oce:22, Camac Street, Block-C,5th Floor, Kolkata-700016 Phone: +91-33-2289-1471; Fax: 91-33-2289-1470; Email: investor@gujaratnre.com; web:
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