As you are all aware, some discussions have occurred surrounding the benefits of retaining Keiser University as both an employer and educational facility in the city.  In that regard, a project to construct an expanded presence for Keiser University (see attachment #1) has been contemplated for some time now but for various reasons involving property control up until now has failed to materialize. Also as you are aware, the CRA entered into a purchase agreement with Encore Development Group in the amount of $1,750,000 relating to the former Walgreen’s building in September of 2019.  The purchase of this well situated property was critical in respect to controlling the future use of the property but also in deference to advancing the position of the CRA as it relates to retaining Keiser University in the city.

As a result, I renewed discussions with Keenan Development Group Inc., whom is the developer representing Keiser University, in order to gauge their level of interest in a project which would be located generally on U.S. Highway 19 just south of Main Street.  I learned from the developers that their interest would involve the establishment of a 41,156 sq. ft. building (see attachment #2) with a considerable amount of surface parking to accommodate their projected growth in both the size of the student body and the requisite staff.  In addition to that though, the developer indicated that they may be interested in establishing a hotel on the property. Incidentally, if both project elements are built the total investment being proposed is in excess of $17,000,000.

As such, it was determined that a larger parcel of property would be required to accommodate the proposed development (see attachments #3 and #4).  The property located just south of the former Walgreen’s site is owned by A.G. Development Group, Inc. and Rivergate Park LLC and contains two unoccupied buildings which serve as a source of blight to the CRA and to the city. Over the course of the last four years or so I have come to know the owner of the property and he has experienced some disappointments in regard to his attempts to get a project mobilized on the site and in the area of his holdings.  Nonetheless, he is quite an astute businessman and as such certainly would consider an offer to purchase the property. 

In that regard and in order to facilitate the proposed project, you are by way of this meeting being asked to authorize entering into a Purchase and Sale Agreement in the amount of $2,500,000 with A.G. Development Group, Inc. and Rivergate Park LLC. in relationship to both the former Media General and Downtown Seafood and Gyro Restaurant properties (see attachment #5).

Also in that regard, you are being asked to consider entering into a Purchase and Sale Agreement relating to the Walgreen’s property, the former Media General and Downtown Seafood and Gyro Restaurant to the Keenan Development Group, Inc. for $4,250,000.

Therefore in short, the purchase price for the three properties which are required for the assemblage equals the total amount that the developer is willing to pay for the property (see attachment #6).

As you know economic development incentives are customary by all levels of government in a project of this magnitude.  In that regard, the specific incentive being recommended for your consideration is $2,100,000 and if the recommended amount is approved the incentives will be provided among a variety of types i.e. financial, abatement of permit and tap fees etc.  All of which will be solidified in the form of a Redevelopment Agreement which will be presented to you at a future meeting for approval.  The amount of the total incentive is based on several factors relating to the benefits of the project along with an analysis of the financial impact to the CRA district.  In that regard, (see attachment #7) which provides for a 20-year assessment of growth in the district which potentially could result in revenue in the amount of $3,792,386.

Lastly, you are being asked to consider entering into an Option Agreement for the future acquisition of property from Keenan Development Group, Inc. (see attachment #8) related to the establishment of a stacked parking facility. As you can see from the agreement, if the CRA determines that for purposes of overall project density it is appropriate to construct a parking structure and resultantly chooses to exercise the said option then Keenan Development Group will abandon the concept of constructing surface parking and will instead donate 1.45 acres of property upon which the CRA will commit to construct a parking structure. The terms of which are identified in the Purchase and Sale Agreement (see attachment #9) and call out specifically that the CRA will issue a decision relating to whether or not a structure will be built on the property by the time the building is prepared for occupancy and additionally that up to 200 parking spots will be constructed in exchange for the donation of property.

I will be prepared to fully represent all of the agenda items at your meeting tomorrow night.