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HomeMy WebLinkAbout09-00527 Cover Memo• • • SEOPW & Omni Boards of Commissioners Meeting May 18, 2009 SOUTHEAST OVERTOWNIPARK WEST Item # 9 AND OMNI COMMUNITY REDEVELOPMENT AGENCIES INTER -OFFICE MEMORANDUM To: Board Chair Michelle Spence -Jones and Members of the CRA Board • From: James H. Viilacorta'i Executive Director Date: May 8, 2009 File: 09-00527 Subject: Resolution Authorizing Execution of an Economic Incentive Agreement with Hotel De L'Opera, LLC for Development of the Mikado Project. References: Enclosures: Supporting Documentation; Legislation BACKGROUND: It is recommended that the Board of Commissioners of the Omni Redevelopment District Community Redevelopment Agency ("CRA") approve and adopt the attached Resolution authorizing execution of an economic incentive agreement, in substantially the attached form, with Hotel De L'Opera, LLC for development of the Mikado Project ("Project"). This Project is a mixed use development consisting of an approximately 250 room hotel, 119 residential units, approximately 45,000 square feet of retail and office space, and a 6 level parking facility. Hotel De L'Opera, LLC has requested funding assistance, in an amount not to exceed $16,000,000, from the CRA for the development and construction of the Project. The CRA and Hotel De L'Opera, LLC have negotiated an economic incentive agreement that requires Hotel De L'Opera, LLC to expend approximately $107,000,000 and create approximately 295 jobs, in exchange for the receipt of 50% of the tax increment revenues generated by the Project. The highlights of this agreement are set forth in the Executive Summary accompanying this item. JUSTIFICATION: Section IIU.B., at page 9, of the Omni Area Redevelopment Plan, as amended, lists "jc]reat[ing] economic magnets to draw more businesses to the Omni area ..." as a stated redevelopment objective. Section III.D.5., at page 10, of the Omni Area Redevelopment Plan, as amended, lists "[p]rovi[sion of] employment opportunities and upward job mobility for residents" as a stated redevelopment objective. This Resolution accomplishes these objectives.