Department staff has reviewed a request from MJR/Southpoint Real Estate Holding Company requesting tax increment funds from the TIF 5 project area. The developer has zoning approvals to construct two commercial buildings: one for a Chipotle sit down / drive through restaurant, and the second building for a AT&T retail store.  Village staff along with consultants retained by the Village, SB Friedman Development Advisors, have performed an analysis to evaluate whether TIF assistance is justified based on the project as presented. Based on that review, staff has negotiated a lower amount than originally requested by MJR/Southpoint in an amount no greater than $170,000. This level of assistance is based on 50% of the cost to the developer to enlarge the detention basin that serves the Southpoint Shopping Center. The total cost of the detention project is estimated at $340,000, thus 50% is $170,000. If the total cost is less than $340,000, then the assistance will be reduced in proportion (ie: if total cost is $300,000 then the assistance is reduced to 50% of that amount or $150,000).

Staff supports the request as this project will retain two existing businesses in the Village and allows for a significant expansion for Chipotle with a drive through, thus increasing food and beverage taxes to the Village. Development of this out lot will also further the objectives to encourage redevelopment at Southpoint Shopping Center.

Recommendation

It is recommended that the Village Board adopt the Ordinance approving the Redevelopment Agreement and authorizing the execution of the Agreement.