Peoria Standard

City of Chillicothe Economic Development Committee met November 1.

Here is the minutes as provided by the committee:

The Economic Development Committee met on November 1, 2017, at 5:30 p.m. in the Council Chambers

at City Hall.

Present:            Chairman Colwell, Alderman Connor, Alderman Jenkins, Alderman Braun, Mayor White

Also Present:    Bobby Miller, developer for 400 Plaza Dr.

Chairman Colwell called the meeting to order.

Chairman Colwell stated that Developer Bobby Miller has advised them that he will be attending the

meeting to discuss the 400 Plaza Dr. Building Incentive, however; he will late.

Bowl and Arrow Façade Application

Mayor White stated that the Bowl and Arrow facility located on Truitt has submitted an application for

the Façade program to replace the sidewalk for the entrance of their facility. The cost to the City would

be $664.00. The consensus of the committee was to send the request to the City Council for approval of

the Façade application at a cost of $664.00.

Flexisnake Façade Application

Mayor White reported that Flexisnake would like to submit an application for the Façade program for

the installation of a new sign for their business and some landscaping. Mayor White stated that

landscaping is not included as part of the façade program, therefore would not be part of the

application. They would like to proceed with the sign portions that is included in the façade program.

Mayor White stated that he does not have the cost for the sign. The city’s policy is 50% of the cost up to

$5,000.00. Mayor White recommended that this be placed on the city agenda for approval, subject to

Submitting the application and the costs. Chairman Colwell stated that this business has made a good

improvement to the block and would agree to sending it to council for approval. The consensus of the

committee was to send the application to council subject to receiving all the necessary documentation.

City-Owned Property on Ash Street

Mayor White explained that the property the city owns is located behind Cedar House, abuts the

Flexisnake property. He said that Flexisnake is interested in this property and the owner of Cedar

House, Wally Zilch has also voice some interest. The cost that the city has in the property is

approximately $51,000.00. Flexisnake would want the property to expand and Wally Zilch expressed

interest only to protect his boundaries. Mayor explained the process the city would have to follow since

the property is in the TIF District.

Alderman Connor stated that she is aware that Flexisnake is growing. Chairman Colwell stated that he

felt the expansion of a business would be good use of the property.

Bacon Building

Mayor White stated that he has received a proposal for the Bacon Building, from James Searle.

Chairman Colwell Stated he went through the building and he stated that the inside of the building is in

horrible condition.

The Mayor gave some background information regarding how the city’s has started the process to take

possession of the building. Estimated time frame for taking possession of the building is January, 2018.

The Mayor stated that he, chairman Colwell and Rachael Parker met with Mr. Searle. He stated that in

the proposal Mr. Searle would like incentives of approximately $842,000.00. A discussion ensued

regarding the proposal and the current condition of the building. The Mayor recommended that we

begin some discussions with Mr. Searle. He also recommended that we have the city engineer give the

city an estimated cost to make the building water tight.

721 Third Demolition

Mayor gave an update. There have been four interested parties that have received the specification for

demolition. He stated that bids are due November 15, 2017. He stated that a Economic Development

Committee meeting will be called for November 16, 2017 at 4:30 p.m. to review any bids that are

received.

ALCO Building Incentive

Mayor White stated that Irvin Latta owns the building and they have a prospective buyer that would

place a dollar tree store in half of the building and the other half they do not have a tenant as of this

time. He said Bobby Miller was in the audience. Just before the last economic development

committee meeting the city received a proposal and the committee was advised that a proposal was

received and it would be placed on the next economic development meeting. The request was for

$260,000 for deficiencies and $115,000 developer return for an approximate cost of $375,000. Zoning

has been looked at and any zoning concerns have been grandfathered. The Mayor advised the

committee that city has provided incentives twice for this property. He explained that the TIF is based

on property tax and that TIF expires in 2020. He explained the return on our investment would be more

sale tax. The projected sales tax would be approximately $13,000 annually. Potentially an additional

tenant could generate and additional $7,000.00 making the city’s revenue from sales tax to be $20,000.

He explained there would be non-financial return on our investment, such as; Fill a vacant building, and

Shopper opportunity.

The Mayor stated that the city could possibly consider a $100,000.00 grant up front and then go from

there.

Bobby Miller addressed the committee. He stated he is a developer for the Dollar Tree Stores.

Economically the numbers do not work based on the information he has. He stated that he will look at

shifting some of the scope of the work. He talked about a lease agreement and other areas of concern.

Alderman Colwell questioned about making a 10 year commitment. Bobby Miller stated this would be a

10 year lease. Bobby Miller stated that he needs a little more incentive from the City and shifting some

of the expenses in order to have this project proceed.

The Mayor gave some perspective on what the city would have to gain should this development

proceed. The Mayor stated that the developer has the right to ask for additional incentives.

Chairman Colwell stated that the purpose of the TIF is to stimulate business and to offer incentives.

Chairman Colwell asked what additional incentive would the committee consider.

Alderman Connor asked if the property owner would give any concessions. Bobby Miller explained how

he is working with the property owner.

After some discussion, Chairman Colwell stated that the city should consider increasing the city’s

incentive from $100,000.00 to $150,000.00. He also discussed the expiration date of the TIF. Alderman

Connor stated she would consider $150,000. Mayor stated that the committee would consider

$150,000 incentive. Bobby Miller stated that he would talk to the property owner and try to shift some

expenses and work towards a December closing date.

There being no further business the meeting adjourned at 7:00 p.m.

http://www.cityofchillicotheil.com/110117.baconbldg.pdf