MT. VERNON — —
A tax increment finance agreements with the Granada Center for the Performing Arts and Kip and Katrina Bauer for a building at the corner of Ninth and Main streets will be discussed during the City Council meeting tonight.
According to the proposed agreements, a total of $90,448 would be made available to the Granada from the Downtown TIF, paid over four years. The first year, $15,871 would be paid with fiscal year 2012-13 TIF monies; $24,859 would be paid the second year from fiscal year 2013-14 proceeds; $24,859 would be paid in the third year from fiscal year 2014-15 proceeds and $24,859 would be paid the fourth year from fiscal year 2015-16 proceeds. The TIF funds will be used for eligible projects pertaining to the replacement of the roof on the auditorium portion of the building.
According to the agreement being presented by the Bauer’s, the couple would be paid 52.6 percent of total project costs not to exceed $108,020, paid out over four years. In the first year, TIF funds of $27,005 or 25 percent of the grant amount would be paid from 2013-2014 proceeds, with the same amount or percentage being paid each year through fiscal year 2016-17 proceeds. The total project cost is listed as $205,530.60.
In addition to the TIF funds, a revolving loan to the Baur’s company, Beit Mashach Property, LLC will be presented tonight to the Council, for $30,000. Under the loan as presented, the principal balance of $30,000 will be amortized over 20 years with a 3 percent annual interest rate. As collateral, the city will take a secondary position on the mortgage on the property and a first position on assets of the business being located in the property including all account receivables, all inventory and all paintings, furniture and equipment; and the couple must obtain a life insurance policy of $30,000 each with the city as the first assignment. In addition, no less than two full-time equivalent jobs must be created by the business, which will be known as Gallery 223.
In other business, the council will:
- Hear a request for permissions to seek bids for the Ninth Street streetscape;
- Hear a reallocation of funds for the 2012-13 budget; and
- Hold a second reading on an ordinance to rezone property at 17697 E. Illinois Highway 15 from agriculture to R-2 by John Dalton.
The city council meets at 7 p.m. tonight at the Rolland W. Lewis Community Building at Veterans Park.