DEPARTMENT: Center City Development Office
DEPARTMENT HEAD: Lori Houston
COUNCIL DISTRICTS IMPACTED: Council District 1
SUBJECT:
Economic Development Agreement for One Alamo Center
SUMMARY:
This ordinance approves an economic development agreement with Klabzuba Realty, LLC and a related Parking License Agreement in order to: (1) create up to 50 new jobs at their downtown facility, and (2) secure a Parking License Agreement for 100 parking spaces to facilitate redevelopment in the East Commerce Corridor in City Council District 1.
BACKGROUND INFORMATION:
One Alamo Center is an office building located at 106 S. St. Mary's St. It was constructed in 1981 and consists of eight stories of office space (165,500 SF) and two levels of parking (144 spaces). Klabzuba Realty, LLC purchased the property in 2005 and the building is currently 39% occupied. This building is in the center of our Central Business District adjacent to an area of Commerce St. that the City is working to revitalize. In an effort to create new jobs, assist Klabzuba in increasing the occupancy in their building and to promote the redevelopment of the East Commerce Corridor, City staff is proposing a $750,000 economic development loan in two components: (1) $250,000 forgivable loan to facilitate the creation of up to 50 new high-wage jobs and (2) $500,000 forgivable loan for a parking license agreement for 100 parking spaces in One Alamo Center for use by the City to facilitate the redevelopment of the East Commerce Corridor.
Subject to funding appropriation in the FY15 Annual Budget, the job creation component is a $250,000 no interest forgivable loan that will be disbursed after October 1, 2014 to facilitate the creation of up to 50 jobs with a minimum salary of $36,000 annually. A job audit will be conducted in the second year of the Agreement to confirm the number of new, full-time jobs which meet or exceed the average annual salary requirement of $36,000. ...
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