HomeMy WebLinkAboutRes.3085.06-05-2017 BILL NO. 17-79 RESOLUTION NO. 30,q5
A RESOLUTION APPROVING A REDEVELOPMENT AGREEMENT IN
CONNECTION WITH A PORTION OF THE RPA 2 REDEVELOPMENT
PROJECT DESCRIBED IN THE REDEVELOPMENT PLAN FOR THE
DOWNTOWN TAX INCREMENT FINANCING DISTRICT, CAPE
GIRARDEAU, MISSOURI, 2015
WHEREAS, the City Council of the City of Cape Girardeau,
Missouri, (the "City Council") is in receipt of a project
proposal from Centurion Development, LLC (the "Developer") ; and
WHEREAS, in January 2016, the City Council approved the
"Redevelopment Plan for the Downtown Tax Increment Financing
District, Cape Girardeau, Missouri, 2015" (the "Redevelopment
Plan") , consisting of five redevelopment project areas; and
WHEREAS, the project includes the redevelopment of 1 North
Main Street for retail/restaurant/event space uses and
redevelopment of 20 North Main Street for retail and residential-
uses for the City' s downtown area, both of which are located in
Redevelopment Project Area 2 (as described in the Redevelopment
Plan) ;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS:
Article 1. The proposal requests tax increment
financing assistance to reimburse the Developer a portion of the
costs of completing the project. The developer is seeking a
percentage of the incremental real property taxes and economic
activity taxes over 23 years . The developer is also seeking
Federal and State Historic Tax Credits for the building located
at 20 North Main.
Article 2. The City Council hereby finds and determines
that it is necessary and desirable to enter into a redevelopment
agreement with the Developer in substantially the form of
Exhibit A attached hereto (the "Redevelopment Agreement") . The
City Manager is hereby authorized and directed to execute the
Redevelopment Agreement on behalf of the City. The City Clerk
is hereby authorized and directed to attest to the Redevelopment
Agreement and to affix the seal of the City thereto. The
Redevelopment Agreement shall be in substantially the form
attached to this Resolution, which Redevelopment Agreement is
hereby approved by the City Council with such changes therein as
shall be approved by the officers of the City executing the
same.
Article 3. The officers, agents and employees of the
City are hereby authorized and directed to execute all documents
and take such steps as they deem necessary and advisable to
carry out and perform the purpose of this Resolution and the
Redevelopment Agreement.
Article 4 . This Resolution shall be in full force and
effect from and after its adoption by the City Council.
PASSED AND ADOPTED THIS 5 DAY OF , 2017 .
ry E. ediger, Mayor
ATTEST: Q
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ruce Taylor, Deputy City Clerk =�k►�$ AIR ,,
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REDEVELOPMENT AGREEMENT
This REDEVELOPMENT AGREEMENT (the "Agreement") is made and entered into as of
2017 (the "Effective Date") by and between the CITY OF CAPE GIRARDEAU,
MISSOURI, a home -rule city organized and existing under the laws of the State of Missouri (the "City"),
and CENTURION DEVELOPMENT, LLC, a limited liability company organized and existing under
the laws of the State of Missouri (the "Developer").
RECITALS:
1. The Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to
99.865 of the Revised Statutes of Missouri, as amended (the "Act"), authorizes municipalities to
undertake redevelopment projects in blighted, conservation or economic development areas, as defined in
the Act.
2. Pursuant to Ordinance No. 4803, adopted on January 4, 2016, the City Council approved
the "Redevelopment Plan for the Downtown Tax Increment Financing District, Cape Girardeau, Missouri,
2015" (the "Redevelopment Plan") and designated the redevelopment area described therein (the
"Redevelopment Area") as a "redevelopment area" pursuant to the Act.
3. Pursuant to Ordinance No. , adopted on June 5, 2017, the City Council approved a
redevelopment project (the "RPA 2 Redevelopment Project") for the portion of the Redevelopment Area
described in the Redevelopment Plan as "RPA 2."
4. In response to a request for proposals, the Developer submitted a proposal to the City
regarding a portion of the RPA 2 Redevelopment Project (the "Proposal"), which Proposal includes the
redevelopment of the building known as 1 North Main for retail/event/restaurant uses and the
redevelopment of 20 North Main for retail and residential uses (as more fully described on Exhibit A, the
"Developer Project").
5. The Proposal requests tax increment financing assistance to reimburse the Developer for
a portion of the costs of completing the Developer Project.
6. Pursuant to Resolution No. , adopted on June 5, 2017, the City Council has
authorized the City to enter into this Agreement to provide the terms and conditions upon which the
Developer will construct the Developer Project and be reimbursed for certain costs, as contemplated by
the Act and the Redevelopment Plan.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and mutual promises contained herein
and other good and valuable consideration, the adequacy and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
Section 1. Development.
(a) The Developer hereby agrees to complete the Developer Project described on Exhibit A
attached hereto at its own expense no later than December 31, 2019. Completion of the Developer
Project shall be deemed to have occurred when the City issues occupancy permits pursuant to its
municipal code for both 1 North Main and 20 North Main. Following receipt of the last occupancy
permit, the Developer shall submit a Certificate of Reimbursable Project Costs in substantially the form
attached hereto as Exhibit B evidencing the costs of the Developer Project for which the Developer
requests reimbursement pursuant to Section 5 below.
(b) The City shall review the Certificate of Reimbursable Project Costs and provide written
objections, if any, to the Developer within 30 days from receipt thereof. If any objections are provided,
the Developer shall cure such objections and resubmit the Certificate of Reimbursable Project Costs. If
no objections are provided within 30 days of receipt, the Certificate of Reimbursable Project Costs shall
be deemed approved by the City on the 31st day following receipt (unless affirmatively approved by the
City prior to such date).
Section 2. Standards.x�
(a) The Developer will complete the Developer Project according to all applicable federal,
state and local ordinances, laws, regulations and codes. The City may inspect the Developer Project in
accordance with the applicable federal, state and local ordinances, laws, regulations and codes to ensure
proper completion thereof.
Section 3. Submission and Approval of Construction Plans. The Developer shall submit
construction plans for the Developer Project to the City as follows:
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(a) Initial Approval. The Developer will submit construction plans for the Developer Project
and the City will review such plans for compliance with all applicable laws, statutes and ordinances, rules
and regulations, including but not limited to the safety and zoning regulations of the City. The Developer
will not begin the Developer Project until it has received all requisite approvals from the City and other
applicable agencies as required by federal, state, and local law, in accordance with a phased construction
schedule agreed upon by the City and the Developer.
(b) Changes. The Developer may make changes to the construction plans in accordance with
federal, state, and local law.
Section 4. Release and Indemnification.
(a) Notwithstanding anything herein to the contrary, the City, its governing body, officials,
agents, employees and independent contractors shall not be liable to the Developer for damages of any
kind or nature whatsoever if any ordinance adopted by the City or transaction completed by the City in
connection with this Agreement is declared invalid or unconstitutional in whole or in part by the final (as
to which all rights of appeal have expired or have been exhausted) judgment of any court of competent
jurisdiction, and by reason thereof either the City is prevented from performing any of the covenants and
agreements herein or the Developer is prevented from enjoying the rights and privileges hereof.
(b) The Developer releases from and covenants and agrees that the City and its governing
body, officials, agents, employees and independent contractors shall not be liable for, and agrees to
indemnify and hold harmless the governing body, officials, agents, employees and independent
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contractors thereof against, any loss or damage to property or any injury to or death of any person
occurring at or about or resulting from any defect in the construction of the Developer Project, except as
such may be caused by the willful misconduct or negligence of the City, its governing body, officials,
agents, employees or independent contractors.
(c) The Developer agrees to indemnify, defend and hold harmless the City, its governing
body, officials, agents, employees and independent contractors from and against any and all suits, claims
and attorneys' fees resulting from, arising out of, or in any way connected with (i) the construction of the
Developer Project or (ii) the negligence or willful misconduct of the Developer, its managers, officials,
agents, employees or independent contractors in connection with the management, development,
redevelopment and construction of the Developer Project, except as such may be caused by the willful
misconduct or negligence of the City, its governing body, officials, agents, employees or independent
contractors.
(d) The Developer agrees to indemnify, defend, and hold harmless the City, its governing
body, officials, agents, employees and independent contractors from and against any and all claims,
demands, costs, liabilities, damages or expenses, including reasonable attorneys' and consultants' fees,
investigation and laboratory fees, court costs and litigation expenses, arising from: (i) any now -existing or
hereafter -arising violation, actual or alleged, or any other liability, under or in connection with any
environmental laws relating to any products or materials previously, now or hereafter located upon,
delivered to or in transit to or from the Developer Project in connection with the construction of the
Developer Project, regardless of whether such violation or alleged violation or other liability is asserted or
has occurred or arisen before the date hereof or hereafter is asserted or occurs or arises and regardless of
whether such violation or alleged violation or other liability occurs or arises as the result of any act,
omission, negligence or misconduct of the City or any third party or otherwise; or (ii) any breach, falsity
or failure of any of the representations, warranties, covenants and agreements of the like.
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(e) The City and its governing body, officials, agents, employees and independent
contractors shall not be liable for any damage or injury to the persons or property of the Developer or its
officers, agents, independent contractors or employees or any other person who may be about the
Redevelopment Area or the Developer Project due to any act of negligence of any person, except as such
may be caused by the willful misconduct or negligence of the City, its governing body, officials, agents,
employees, or independent contractors.
(f) No member of the governing body, officials, agents, employees or independent
contractors of the City shall be personally liable to the Developer in the event of a default or breach by
any party under this Agreement.
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(g) All covenants, stipulations, promises, agreements and obligations of the City contained
herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City
and not of its governing body, officials, agents, employees or independent contractors in their individual
capacities.
Section 5. Installment Payments by the City.
(a) For purposes of Sections 5 and 6 of this Agreement, the following terms shall have the
following meanings:
"Available TIF Revenues" means 95% of the incremental real property taxes and, subject
to annual appropriation by the City Council, economic activity taxes described in Sections
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99.845.1(2)(a) and 99.845.3 of the Act, respectively, generated from the Developer Project and
deposited in the City's Special Allocation Fund; provided, however, (i) the City shall have no
obligation to include incremental utility taxes (if any) within this definition unless the Developer
provides the City with copies of utility bills from businesses located in the Developer Project
prior to the end of the applicable Calculation Period, (ii) the City Council may or may not, in its
sole discretion, declare as "surplus" pursuant to the Act any economic activity taxes attributable
to businesses that relocate into the Developer Project from elsewhere in the City and (iii) no
revenues that are subject to a challenge or protest shall be included in the definition of Available
TIF Revenues until such challenge or protest is resolved.
"Calculation Period" means initially, the period from the Commencement Date to the last
day of the second month preceding the first Payment Date (i.e., if the Commencement Date is
January 1, 2020 and the first Payment Date is May 1, 2020, the initial Calculation Period runs
through March 31, 2020); and thereafter, each period from the end of the previous Calculation
Period to the last day of the second month preceding the next Payment Date, except that that the
Calculation Period for the June 4, 2040 Payment Date will be from the end of the penultimate
Calculation Period to April 30, 2040.
"Commencement Date" means the first day of the month following the first month in
which the City receives sales tax revenues generated from the Developer Project.
"Payment Date" means every May 1 and November 1 following the Commencement
Date and on June 4, 2040 (i.e., the date that is 23 years from the approval of the ordinance
approving the RPA 1 Redevelopment Project).
"Reimbursable Developer Project Costs" means the costs of the Developer Project
identified on the Certificate of Reimbursable Project Costs approved by the City in accordance
with this Section in the maximum amount of $1,154,000 plus interest on such costs accruing at a
rate of 3.0% per annum (assuming a 30/360 year) from the date that the Certificate of
Reimbursable Project Costs is approved or deemed approved by the City pursuant to Section 1;
total assistance shall be capped at $1,210,000 if achieved before 23 years.
(b) On each Payment Date, the City shall apply the Available TIF Revenues during the
preceding Calculation Period as follows:
(i) The sum of $1,000 shall be retained by the City as an administrative fee; and
(ii) The remaining Available TIF Revenues shall be paid to the Developer or its
designee for the reimbursement of the Reimbursable Developer Project Costs.
On each Payment Date, the City shall provide the Developer with a written accounting showing
the amount of Available TIF Revenues collected during the Calculation Period, the application of the
Available TIF Revenues pursuant to this Section and the outstanding balance of the Reimbursable
Developer Project Costs (including accrued, but unpaid interest) not yet reimbursed.
(c) Notwithstanding anything to the contrary contained herein, in lieu of the payments
described in (b), the City may issue bonds, notes or other obligations secured by Available TIF Revenues
and use the sale proceeds of the bonds, notes or other obligations to pay the Reimbursable Developer
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Project Costs due to the Developer. The Developer shall cooperate in good faith if the City decides to
pursue any such issuance of bonds, notes or other obligations.
(d) The Developer shall cause all businesses generating taxable retail sales located in the
Developer Project to provide a consent to the release of confidential sales tax information to the City, in a
form acceptable to the City, for the limited purpose of preparing and approving budgets, appropriation
requests and other actions contemplated by this Agreement. The Developer shall also require each
"seller" (as that term is defined in Section 144.010(10) of the Revised Statutes of Missouri) located in the
Developer Project to supply or cause to be promptly supplied to the City's Finance Director, monthly or
quarterly sales tax information of each "seller" (as that term is defined in Section 144.010(10) of the
Revised Statutes of Missouri) in a form substantially similar to th R s tax returns filed by such seller
with the Missouri Department of Revenue. �....
Section 6. Annual Appropriation of Economic Activity Taxes.
(a) The City's obligation to pay economic activity taxes pursuant to Section 5 is limited to
those funds budgeted and appropriated for that purpose during the City's then -current fiscal year. The
City agrees to cause the officials and employees in charge of drafting a budget to include the
appropriations contemplated by this Agreement in the annual budgets presented to the City Council for its
consideration. If Available TIF Revenues are generated, but economic activity taxes are not legally
appropriated or otherwise legally made available to make the required payments by this Agreement, the
City must immediately post notice of such event on the EMMA system maintained by the Municipal
Securities Rulemaking Board (or if the EMMA system has been discontinued, a system nationally
recognized for communicating material events relating to municipal bonds).
(b) The obligation of the City to pay economic activity taxes hereunder constitutes a current
expense of the City, is from year-to-year, and does not constitute a mandatory payment obligation of the
City in any fiscal year beyond the then -current fiscal year of the City. The City's obligation to pay
economic activity taxes hereunder shall not in any way be construed to be a debt of the City in
contravention of any applicable constitutional, charter or statutory limitation or requirement concerning
the creation of indebtedness by the City, nor shall anything contained herein constitute a pledge of the
general credit, tax revenues, funds or moneys of the City.
Section 7. Representations, Warranties and Covenants.
(a) By the City. The City represents, warrants, covenants and agrees as a basis for the
undertakings on its part contained herein that:
(i) The City is a home -rule City organized and existing under the laws of the State
of Missouri and its Charter, and by proper action has been duly authorized to execute, deliver and
perform this Agreement.
(ii) To the best of the City's knowledge, there are no lawsuits either pending or
threatened that would affect the ability of the City to perform this Agreement.
(b) By the Developer. The Developer represents, warrants, covenants and agrees as the
basis for the undertakings on its part herein contained that:
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(i) The Developer is a limited liability company duly organized and existing under
the laws of the State of Missouri, and has power to enter into, and by proper action has been duly
authorized to execute, deliver and perform, this Agreement.
(ii) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement, conflicts with or results in a breach of any of the terms, conditions
or provisions of any restriction, agreement or instrument to which the Developer is now a party or
by which the Developer is bound.
(iii) There are no lawsuits either pending or threatened that would affect the ability of
the Developer to proceed with the completion or operation of the Developer Project.
(iv) The Developer agrees to maintain commercial general liability insurance for the
Developer Project in a policy amount of not less than the then -current absolute statutory waivers
of sovereign immunity in Sections 537.600 and 537.610 of the Revised Statutes of Missouri, as
amended, as may be revised annually by the Missouri Department of Insurance. The Developer
further agrees to name the City as an additional insured with respect to such policy and to
annually provide evidence of such insurance policies to the City.
(v) The Developer agrees to annually provide evidence of contractual liability
insurance (in form and substance reasonably acceptable to the City's legal counsel) that insures
the Developer's obligations to indemnify the City, as provided in this Agreement.
Section 8. T p*0' on This Agreement shall terminate upon the earliest of any of the
following:
(a) the retail/restaurant portion of the Developer Project has greater than 75%
vacancy for more than twelve (12) consecutive months (after the first three (3)
z. consecutive months of reaching the threshold vacancy, the Developer shall
commence monthly meetings with the City to discuss efforts to fill the vacancy
until such time as the vacancy is filled or this Agreement is terminated);
the satisfaction of all payments due under Section 5(b); or
(d) June 4, 2040.
Section 9. Default and Remedies.
(a) Events of Default. The following shall be events of default ("Events of Default") with
respect to this Agreement:
(i) If any material representation made by a party in this Agreement, or in any
certificate, notice, demand or request made by a party, in writing and delivered to the other party
pursuant to or in connection with this Agreement proves to be untrue or incorrect in any material
respect as of the date made;
(ii) Breach by a party of any material covenant, warranty or obligation set forth in
this Agreement; or
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(b) Remedies on Default. In the case of an Event of Default by a party hereto or any
successor to such party, such party or successor shall, upon written notice from another party, take
immediate action to cure or remedy such Event of Default within sixty (60) days after receipt of such
notice. If the Event of Default is not cured or remedied within such sixty (60) day period (or, in the case
of Events of Default that cannot be cured within a sixty (60) day period, the defaulting party does make
reasonable process toward curing the default and does not notify the aggrieved party of when default will
be cured), then the aggrieved party may terminate this Agreement or institute such proceedings as may be
necessary or desirable in its opinion to cure or remedy such default, including but not limited to,
proceeding to compel specific performance by the party in default of its obligations.
(c) Other Rights and Remedies of Parties; Delay in Performance Waiver.
(i) Any delay by a party in instituting or prosecuting any actions or proceedings or
otherwise asserting their rights under this Agreement shall not operate to act as a waiver of such
rights or to deprive them of or limit such rights in any way (it being the intent of this provision
that the parties should not be constrained so as to avoid the risk of being deprived of or limited in
the exercise of the remedies provided in this Agreement because of concepts of waiver, laches or
otherwise); nor shall any waiver in fact made by a party with respect to any specific Event of
Default by a party under this Agreement be considered or treated as a waiver of the rights of a
party under this Section or with respect to the particular Event of Default, except to the extent
specifically waived in writing by the other parties.
(ii) The rights and remedies of the parties to this Agreement (or their successors in
interest) whether provided by law or by this Agreement, shall be cumulative, and the exercise by
any party of any one or more of such remedies shall not preclude the exercise by it, at the time or
different times, of any other such remedies for the same Event of Default by another party. No
waiver made by any party with respect to the performance, nor the manner of time thereof, or any
obligation of another party or any condition to its own obligation under the Agreement shall be
considered a waiver of any rights of the party making the waiver with respect to the particular
obligation of another party or condition to its own obligation beyond those expressly waived in
writing and to the extent thereof, or a waiver in any respect to regard to any other rights of the
party making the waiver or any other obligations of another party.
(iii) Neither the City nor the Developer, nor any successor in interest, as the case may
be, shall be considered in breach of, or in default of, any of its obligations under this Agreement
or otherwise with respect to the Developer Project, or progress in respect thereto, in the event of
delay in the performance of any such obligations due to unforeseeable causes beyond its control
and without its fault or negligence, including, but not restricted to acts of God, acts of a public
enemy, acts of federal, state or local government (other than the City), litigation instituted by
third parties, acts of the other party, fires, floods, epidemics, quarantine restrictions, strikes,
embargoes, acts of nature, unusually severe weather or delays of subcontractors due to such
causes; it being the purpose and intent of this provision that in the event of the occurrence of any
such delay, the time or times for performance of such obligations by the City or the Developer
shall be extended for the period of the enforced delay; provided, that the party seeking the benefit
of the provisions of this Section, shall within thirty (30) days after the beginning of any such
enforced delay, have first notified the other party thereof in writing, of the cause or causes
thereof, and requested an extension of the period of delay.
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Section 10. Amendment or Modification. The parties to this Agreement may amend or
modify this Agreement only by written instrument duly executed by the parties hereto.
Section 11. Third Party Rights. No person or entity who or which is not a party to this
Agreement will have any right of action under this Agreement.
Section 12. Scope. This Agreement constitutes the entire Agreement between the parties,
and no statements, promises or inducements that are not contained in this Agreement will be binding on
the parties.
Section 13. Severability. If any part, term or provision of this Agreement is held by a court
of law to be illegal or otherwise unenforceable, such illegality or unenforceability will not affect the
validity of any other part, term or provision, and the rights of the parties will be construed as if the part,
term or provision was never part of this Agreement.
Section 14. Transferability. This Agreement may not be assigned by the Developer without
the express written approval of the City unless such assignment is (i) to an entity succeeding to all or
substantially all of the business of the Developer or to an entity controlled by the Developer or under
common control with the Developer (in which case the Developer shall provide notice to the City of such
assignment within 10 days from the date of such assignment); (ii) made for the purpose of a collateral
assignment by the Developer to secure loans, advances or extensions of credit to finance or from time to
time refinance all or any part of the Redevelopment Project, or (iii) made by the transferee of any such
collateral assignment to transfer such interest by foreclosure or transfer in lieu of foreclosure under such
collateral assignment.i}y;,
Section 15. Notice. Any notice required or permitted by this Agreement will be deemed
effective when personally delivered in writing or three (3) days after notice is deposited with the U.S.
Postal Service, postage prepaid, certified, return receipt requested, and addressed as follows:
City of Cape Girardeau
401 Independence Street
Cape Girardeau, Missouri 63702
Attn: City Manager
City of Cape Girardeau
401 Independence Street
Cape Girardeau, Missouri 63702
Attn: City Attorney
And: Gilmore & Bell, P.C.
One Metropolitan Square
211 N. Broadway, Suite 2350
St. Louis, Missouri 63102
Attn: Mark D. Grimm, Esq.
The Developer: Centurion Development, LLC
112 South Broadview Street
Cape Girardeau, Missouri 63703
Attn: Dustin Richardson, Managing Member
With a copy to: The Limbaugh Law Firm
407 North Kingshighway, 4b Floor
Cape Girardeau, MO 63701
Attn: Jeff Koch, Esq.
Section 16. Immunity. Nothing contained in this Agreement constitutes a waiver of the
City's sovereign immunity under any applicable state law.
Section 17. Jurisdiction and Venue. Personal jurisdiction and venue for any civil action
commenced by either party to this Agreement shall be deemed to be proper only if such action is
commenced in the Circuit Court of Cape Girardeau County, Missouri. The Developer expressly waives
its rights to bring such action in or to remove such action to any other court whether state or federal.
Section 18. Missouri Law. This Agreement shall be construed in accordance with and
governed by the laws of the State of Missouri.
Section 19. Federal Work Authorization Program. Simultaneously with the execution of
this Agreement, the Developer will provide the City with an affidavit and documentation meeting the
requirements of Section 285.530, RSMo.
Section 20. Counterparts. This Agreement may be executed in several counterparts, which
shall constitute one and the same instrument.
Section 21. City Fees. Simultaneously with the execution of this Agreement, the Developer
shall pay the City the sum of $500 for legal and other fees and expenses incurred in connection with the
preparation of this Agreement.
iii
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and the City
has caused its seal to be affixed hereto and attested as of the date first written above.
(SEAL)
ATTEST:
By:
Name
Title:
Gayle L. Conrad
City Clerk
CITY OF CAPE GIRARDEAU, MISSOURI
By:
Name: Scott A. Meyer
Title:
CENTU DEVELOPMENT,LLC
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EXHIBIT A
DEVELOPER PROJECT DESCRIPTION
I North Main
• Located on Parcel No. 211070024009000000
• Redevelopment of property including complete interior/exterior renovation of an estimated
24,000 square feet including the potential for a 2-3 story restaurant with an open rooftop pavilion
overlooking Bill Emerson Memorial Bridge; a 7-10,000 square foot meeting/event center; and a
6-10,000 square foot year-round farmers market.
M North Main
0 Located on Parcel Nos. 211070025010001000, 211070025010001001, 211070025010001002,
211070025010001003, 211070025010001004, 211070025010001005, 211070025010001006,
211070025010001007, 211070025010001008, 211070025010001009, 211070025010001010,
211070025010001011,211070025010001012
• Redevelopment of property including an update of eight (8) existing residential units and two (2)
existing commercial spaces; development of three (3) new residential spaces on the second floor;
and replacing or updating elevator. Project will also utilize state/federal historic tax credits to
assist with project viability and maintenance of historic integrity.
I_VI
EXHIBIT B
FORM OF CERTIFICATE OF REIMBURSABLE PROJECT COSTS
Certificate of Reimbursable Project Costs
TO: City of Cape Girardeau, Missouri
401 Independence Street
P.O. Box 617
Cape Girardeau, Missouri 63702
Attention: Deputy City Manager
Re: 1 and 20 North Main Redevelopment Project
Terms not otherwise defined herein shall have the meaning ascribed to such terms in the
Redevelopment Agreement dated as of , 2017 (the "Agreement') between the City of Cape
Girardeau, Missouri (the "City") and Centurion Development, LLC (the "Developer"). In connection
with said Agreement, the undersigned hereby states and certifies that:
1. Each item listed on Schedule 1 hereto is a Reimbursable Developer Project Cost that was
incurred in connection with the completion of the Developer Project.
2. These Reimbursable Developer Project Costs have been paid by the Developer and are
reimbursable under the Act and the Agreement.
3. There has not been filed with or served upon the Developer any notice of any lien, right
of lien or attachment upon or claim affecting the right of any person, firm or corporation to receive
payment of the amounts stated in this request, except to the extent any such lien is being contested in
good faith.
4. All necessary permits and approvals required for the Developer Project are in full force
and effect.
5. If any cost item to be reimbursed under this Certificate is deemed not to constitute a
"redevelopment project cost" within the meaning of the Act, the Developer shall have the right to
substitute other eligible Reimbursable Developer Project Costs for payment hereunder.
The Developer is not in default or breach of any term or condition of the Agreement.
Dated this day of 120
CENTURION DEVELOPMENT, LLC
LIM
[Name], [Title]
Approved for Payment this day of , 20
CITY OF CAPE GIRARDEAU, MISSOURI
[Name], [Title]
CITYOfCAPE
I
APPLICATION FOR TAX INCREMENT FINANCING OR OTHER PUBLIC INCENTIVES
Applicant's Name: Centurion Deu210pnlent I-.I-.C.
Street Address: 112 South Broadview Street
City/State/ Zip: Cape Girardeau, Missouri, 63703
Applicants' Federal Tax Identification Number (FEIN): 26-1539420
MITS/Missouri ID No.: n/a
Name and Title of Responsible Officer: Dustin Richardson, Managing Member
Jason Coalter, Nlanaging Member
Telephone: (573)335-7368
FAX: (573)651-3294
E-mail: dustin@centuriondevelopment.org
Attorney for or Authorized Representative of Applicant:
Jeff Koch, The Limbaugh Law Firm
Telephone: (573)234-6716
FAX: (573)335-0621
E-mail: jkoch@limbaughlaw.com
Street Address: The Limbaugh Firm
407 North Kingshighway, 4"' Floor
Cape Girardeau, MO 63701
Application Format: Please answer the following questions on a separate sheet of
paper.
Upon request, proposals will be kept confidential to the extent permitted by law.
DEVELOPMENT TEAM:
1) Provide the relevant information on the Applicant's background and development
experience. Demonstrate that the Applicant possesses the technical ability to
complete and operate the project. Include resumes of key individuals assigned to
the project.
Exhibit 1
Centurion Development L.L.C. is locally owned/managed by Dustin Richardson
and Jason Coalter. We possess extensive redevelopment knowledge of
blighted/clated structures. Centurion Development has successfully completed
numerous historical/non historical redevelopments in the City of Cape
Girardeau.
With the success of 1105 Broadway "EI Sol", 114 N. Main Street "BrOUSsards",
126 (\l. Main Street "The Wright Group", the current two properties being
considered land directly in our area of expertise.
2) Identify the Applicant's consultants (i.e. architect, civil engineer, legal counsel and
other professionals) involved or proposed to be involved in the project. Provide
addresses and other contact information for each consultant.
20 North Main
CONTACT
PHONE
CONSULTANT
NAME
PERSON
ADDRESS
NUMBER
ARCHITECT
Keystone Design
Pam Davidson
310 Broadway Street, Suite 7
(573)335-7624
Cape Girardeau, Mo 63701
STRUCTURAL
Koehler Engineering
Greg Tarbutton
194 Coker Lane,
(573)335-3026
ENGINEER
& Surveying, Inc.
Cape Girardeau, Mo 63701
MECHANICAL
Conrad Lutz &
Paul Looter
1850 Craigshire Road, Suite 1058,
(314)576-7967
ENGINEER
Associates, Inc.
St. Louis, Mo 63146
HISTORIC
Centurion
Dustin
112 South Broadview Street
(573)450-5660
PRESERVATION
Development L.L.C.
Richardson
Cape Girardeau, Mo 63703
CONSULTANT
ACCOUNTING
Hillin & Company, PC
Jim Hillin
364 S. Broadview St. Suite A,
(573)334-8200
Cape Girardeau, Mo 63703
GENERAL LEGAL 407 N. Kingshghway, Suite 400
COUNCEL The Limbaugh Firm Cape Girardeau, MO 63701
Jeff Koch (573)335-3316
Exhibit 2 —Applicants Consultants
3) Primary principal(s) and development team must be in good standing with the City,
County, State, and Federal governments, including: being current with taxes and
fines owed, licensing is current and up-to-date and must not be in any outstanding
disputes that may put the City in precarious situations.
All principals and development team are in good standing with City, County.
State, and Federal governments.
Project Description:
4) Identify the location of the project by street address and parcel number(s).
Exhibit 4
5) Describe the proposed project, including the size and scope and phasing of the
proposed project. Include a site plan that illustrates the project (i.e. building uses,
parking spaces, driveways, sidewalks, etc.) and, if available, a floor plan.
Exhibit
6) Identify the current owners) of the real property included in the project. If the
Applicant and the current owner(s) are not the same entity, describe the
relationship between such entities (i.e., related entities, Applicant has contractual
option to purchase the property, etc.).
Property is currently owned by Centurion Development L.L.C.
7) Is the property currently zoned for the proposed use? If not, what zoning change will
be required?
Yes, current zoning allows for this use. Property is currently zoned Central
Business District with a Downtown Commercial Conidor overlay.
STATUTORY ELIGIBILITY REQUIREMENTS:
8) State the need and justification for TIF assistance. Provide the "but -for" affidavit in
the form attached.
The scope of work necessary to bring these properties up to current building
codes exceeds would require costly rents that would not make occupancy viable
for a merchant to occupy the space. Incentive programs are necessary in order
for the developer/tenant to take the necessary risk of developing a high-quality
property in a market that typically would not appraise/resell even at a breakeven
to the actual investment.
"but -for" affidavit attached to application.
9) Attach a letter from a financial institution indicating (a) that the Applicant has
sufficient financial resources to obtain the private financing for the project and (b)
that the financial institution is committed to provide such private financing, subject
to normal underwriting criteria.
Exhibit 9
PROJECTS COSTS/ FINANCING:
10) Identify sources, amount, and status of all debt financing and/or equity funding
available to complete the project. With respect to each source of funds, identify a
contact person who can verify such source.
Exhihit 10
MRN Banks—Robbie Guard
11) Provide and outline the costs associated with the development of the proposed
project(s).
In Exhibit 11
12) List other public incentives, if any, which are being sought by the Applicant in
furtherance of this project.
State/Fed ral Historic Tax Credits For 20 M. vlain only
13) Provide a pro forma financial statement, showing the projected return on
investment if the project is built without TIF assistance, and the projected return on
investment if the project is built with TIF assistance.
In Exhibit 12A L� 12B
14) Provide an estimate of the market value of all taxable personal property to be
located at the project site following completion of the project.
Est. $200,000 in FFE
I hereby certify all the information in this application is true and complete to the best of
my knowledge.
I acknowledge submitting this application is not a guarantee of public assistance. Each
proposal will be evaluated to determine how well it supports the City's objectives for the
Redevelopment Area and if public incentives are warranted. The City may reject all or
part of any redevelopment proposal. Approval of the redevelopment proposal or any
part thereof will be made in tfie sole discretion of City.
1 also acknowledge th pubf/'c assistance through the use of Tax Increment Financing will
be on a pay as y u g bads.
Applicant's
A=
Title
3-2-17
Date
Centurion Development, LLC
Company
STATE OF MISSOURI
COUNTY OF CAPE GIRARDEAU
I, the undersigned, am over the age of 18 years and have personal knowledge of the
matters stated herein.
1. 1 am a managing partner of (Centurion Dev flopi7rent, Li C), and am authorized to
attest to the matters set forth herein.
2. Centurion Development (Name of Company) owns the property located at 1 & 20 I\!
Vlain Street in Cape Girardeau, Missouri. T //hout
�rty has not been subject to
growth and development through investr�rte t rivate enterprise, and would
not reasonably be anticipated to be deyelo ed the adoption of tax
increment financing. 7
Printed Name/Jakin Coalter
Subscribed and sworn to before me this 3"{ day of March, 2017.
Notary Public
My commission expires on:
1
NATALIA A. BEASLEY
Notary Public - Notary Seal
State of Missouri
Commissioned for Cape Girardeau County
My Commission Expires; June 05, 2020
Commission Number: 12351032
Centurion Development L.L.C. is locally owned/managed by Dustin Richardson and Jason
Coalter. �/Ve possess extensive redevelopment knowledge of blighted/dated structures.
Centurion Development has successfully completed numerous historical/non historical
redevelopments in the City of Cape Girardeau.
\Nith the success of 1105 Broadway "EI Sol", 114 N. Main Street "Broussards`, 126 M.
Main Street "The Wright Group", the current two properties being considered land
directly in our area of expertise.
20 North Main
CONSULTANT
ARCHITECT
NAME
Keystone Design
STRUCTURAL ENGINEER Koehler Engineering &
Surveying, Inc.
MECHANICAL ENGINEER Conrad Lutz &
Associates, Inc.
CONTACT PERSON
Grady Wooten
Greg Tarbutton
Paul Looter
HISTORIC PRESERVATION Centurion Development Dustin Richardson
L. L.C.
CONSULTANT
ACCOUNTING Hillin & Company, PC
GENERAL LEGAL COUNCEL The Limbaugh Firm
Jim Hillin
Jeff Koch
ADDRESS
PHONE NUMBER
310 Broadway Street, Suite 7 Cape
(573)335-7624
Girardeau, Mo 63701
194 Coker Lane, Cape
(573)335-3026
Girardeau, Mo 63701
1850 Craigshire Road, Suite 105B, St.
(314)576-7967
Louis, Mo 63146
112 South Broadview Street Cape
Girardeau, Mo 63703 (573)450-5660
364 S. Broadview St. Suite A, Cape (573)334-8200
Girardeau, Mo 63703
407 N. Kingshghway, Suite 400 Cape
Girardeau, MO 63701 (573)335-3316
Exhibii4- Parcel Iforrnation
1 North Main 20 Month Mlain
Parcel iIlumbers:
21x070024009000000 211070025010001000
211070025010001001
211070025010001002
211070025010001003
211070025010001004
211070025010001005
211070025010001005
211070025010001007
211070025010001008
211070025010001009
211070025010001010
211070025010001011
211070025010001012
Scapa OAKS:
-. M. A/Idlil
1 1 2fllpI2 Iii ternf/EmAj r2d vekynaP& 0i 'Jit a W 21000 sq HO 2 No and lill(1
Thu potendal For a 2 3 .'.:ui i nzaumnc ?/Itis m upnn rookap VII1011 rv-C,204I Il i' the
Dill En lel Jn I"ielr nit "'71Ci'2
2. 1'l /-]. l),(J(ll) qLi L; ra Fault aP_la if YAW ieCl-il i:,31_ nii ,I i=1 `. idi ii/GDd iOOr"-s
-knd eFoose Cl OI�ICi'.
'_10 rill rlu soot �'c� iri ��,�hsh �!r On _7_
.Is it l_ vaq /qpO,J u A,w,li s50`1A &i InL' __.
1_ qn Upd it 0-ei�nl '�. ,tf� Illi ''.Id X11 C-. UnIL In � .'v`iG'���, Ctln;l0ihnle' d sp<lCas.
2. �2V 2100 n2t1L of � ild�Ai ra Ill -f'7ai Ud �2� GI tir_ - I 00T. Ths space, clurylty Is all
under uAved 15I Ighilyd spcaC?
3. Pian co put kvabr On s:'vica hit comploWN rsphQna or updathnd
4. ERtenor Facade higl-ovem9I1C_
S. A plan to utilize stareAderal historic `ax ciechn to assht in making Che project AM
and m�intain historic inteacity
1 II
2/28/2017
Property: 20 N. Main Street, Cape Girardeau, Mo 63701
Borrower: Centurion Development LLC
To whom it may concern:
Centurion development has sufficient enough financial resources to obtain financing for the
project pertaining to the above property and MRV Banks is committed to financing that project in
its entirety.
If you would have any questions feel free to contact me at your earliest.
Respectfully,
Robbie✓
Vice President \' .
MRV Banks
1610 N. Kingshighway Suite 102
Cape Girardeau, MO 63703
573-334-7811 Phone
573-339-8652 Fax
rauard(amrvbanks cora
NMLS#972482
Member
112t �MIHC
EQUAL HDMNG
LENDER
2/28/2017
Property: 1 N. Main Street, Cape Girardeau, Mo 63701
Borrower: Centurion Development LLC
To whom it may concern:
Centurion development has sufficient enough financial resources to obtain financing for the
project pertaining to the above property and MRV Banks is committed to financing that project in
its entirety.
If you would have any questions feel free to contact me at your earliest.
Respectfully, \
Robbie Guard
Vice President \\
MRV Banks
1610 N. Kingshighway Suite 102
Cape Girardeau, MO 63703
573-334-7811 Phone
573-339-8652 Fax
rwardna,mrvbanks.com
NMLS#972482
@1]'k�leT
f2r
Eaug HOUSING
LENDER FDIC
Centurion Development, I.I.c.
Straight Financing - No Assistance
Bank
loan #
Property Address
Balance
Appraisal
Rent/mo
Rent/Yr
Payment/m
Payment/Y
10% vacancy
27% expenses
CADS
DSC
MRV
400093000
1 N Main
1,690,000
3000000
18000
216,000
10315
123780
21,600
52,488
141,912
1.15
Farm to Fork
500,000
0
-
0
0
-
-
#DIV/01
Event Center
400,000
0
0
0
#DIV/0!
Farmers Market
300,000
0
-
0
0
#DIV/01
TOTAL
2,890,000
3,000,000
18,000
216,000
10,315
123,780
21,600
52,488
141,912
1.15
Loan - 1,690,000 @ 5% for 23 ear amort $10,315/month P & I
Centurion Development, I.I.c.
No Assistance or Tax Credit
Bank
loan #
Property Address
Balance
Appraisal
Rent/mo
Rent/Yr
Payment/mo
PavmentlYr
10%vacanc
27% expenses
CADS
DSC
MRV
400093000
20 N Main
987,870
1000000
8000
96,000
6029
72348
9,600
23,328
63,072
0.87
Improvements
764,230
600000
6550
78,600
4664
55968
7,860
19,100
51,640
0.92
-
0
0
-
-
-
#DIV/01
TOTAL
1,752,100
1,600,000
14,550
174,600
10,693
128,316
17,460
42,428
114,712
0.89
Loan - 1,752,100 @ 5% for 23year amort $10,693/month P & I
NO TIF w/ Tax Credit
Bank
loan #
Property Address
Balance
Appraisal
Rent/mo
Rent/Yr
Payment/mo
PavmentlYr
10% vacanc
27% expenses
CADS
DSC
MRV
400093000
20 N Main
987,870
1000000
8000
96,000
6029
72348
9,600
23,328
63,072
0.87
Improvements/after TC
599,879
600000
6550
78,600
3661
43932
7,860
19,100
51,640
1.18
TOTAL
1,587,749
1,600,000
14,550
174,600
9,690
116,280
17,460
42,428
114,712
0.99
State Historic Tax Credit Approval
State Credit
State Credit Sale
Final before TIF
Non Qualified
33,780.00
25%
90%
Cost
764,230
Qualified
730,450.00
182,613
164,351
Net Tax credit
164,351
Loan Total
599,879
Loan - 1,587,749 @ 5% for 23 ear amort $9,690/month P & I