Agenda Date: 12/20/2016
Subject:
Title
A resolution adopting the first amendment to the redevelopment assistance agreement with Dillon companies, Inc., a Kansas corporation (D/B/A King Soopers), addressing a scrivener’s error
Body
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Presented By: |
Mike Braaten, Deputy City Manager |
POLICY QUESTION:
Does city council support adopting the amendment to the Redevelopment Assistance Agreement with Dillon Companies to correct a scrivener’s error?
BACKGROUND:
City council adopted a Redevelopment Assistance Agreement with Dillon Companies, DBA King Soopers, in September, 2013 for redevelopment of the property and construction of a new and larger store at 100 West Littleton Boulevard. The agreement included a rebate of half of the building and plan review permit fees, half of the use tax not to exceed $118,681, and a sales tax rebate.
The Redevelopment Assistance Agreement allowed the city to collect and retain, for the first six years of operation of the new store, an amount equal to the annual average of the previous five years of the sales tax collected at the previous store (the base amount). Once the base amount was satisfied, the agreement required the city to rebate, in error, 100 percent (versus 50 percent) of any further retail sales taxes collected for that respective year.
The term of the agreement is six years and not to exceed $500,000 cumulatively.
Related documentation regarding the passage of the original agreement in 2013 is attached.
STAFF ANALYSIS:
This amendment addresses correction of a scrivener’s error agreed to by both parties, putting in place as originally agreed to, a 50 percent rebate of all sales taxes collected beyond the base amount.
The city did remit 100 percent per the agreement ($50,566) for 2015, but was repaid half of the payment ($25,283) by King Soopers earlier this year when the scrivener’s error was found.
Dillion Companies, DBA King Soopers has signed the Amendment to the Redevelopment Assistance Agreement, provided as an attachment.
This agreement has no effect on LIFT, urban renewal tax increment finance, or repeal of the North Broadway Urban Renewal Plan.
FISCAL IMPACTS:
King Soopers has repaid the portion of the payment made in error.
The finance department has budgeted $26,850 for the 2016 incentive payment and anticipates the 2017 incentive payment to be $28,190.
STAFF RECOMMENDATION:
Staff recommends approval.
PROPOSED MOTION:
Proposed Motion
I move to approve the resolution adopting the first amendment to the Redevelopment Assistance Agreement with Dillon Companies, Inc., a Kansas corporation (D/B/A King Soopers), to address a scrivener’s error.