City of San Antonio - File #: 15-5041

• File #: 15-5041
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 10/22/2015
• Posting Language: An Ordinance authorizing the execution of a 380 Economic Development Program Grant Agreement for up to $233,907.00 of Inner City TIRZ Funding to Chelsea’s Catering and Bar Service for commercial kitchen equipment located at 217 Cactus Street. [Peter Zanoni, Deputy City Manager, John Dugan, Director, Planning and Community Development]

Date	Ver.	Action By	Action	Result
10/22/2015	1	City Council A Session	Motion to Approve	Pass

DEPARTMENT: Planning and Community Development

DEPARTMENT HEAD: John Dugan

COUNCIL DISTRICTS IMPACTED: 1, 2 & 5

SUBJECT:
An Ordinance authorizing the execution of a 380 Economic Development Grant Agreement for up to $233,907.00 of Inner City TIRZ Funding to Chelsea's Catering and Bar Service for commercial kitchen equipment located at 217 Cactus Street.

SUMMARY:
City Council is being asked to consider an Ordinance authorizing the execution of a 380 Economic Development Grant Agreement for up to $233,907.00 of Inner City TIRZ funding to Chelsea's Catering and Bar Service (CCBS) for new equipment at the company's headquarters located at 217 Cactus Street. The new equipment will enable CCBS to hire twenty new full-time employees.

BACKGROUND INFORMATION:
On May 5, 2015, CCBS submitted a formal proposal to the Inner City TIRZ Board of Directors requesting $233,907.00 in TIRZ funding to support the purchase of commercial kitchen equipment for the company's headquarters located at 217 Cactus Street.

CCBS, owned and operated by Tony Gradney, is a full service catering and beverage service. CCBS is the exclusive beverage provider for the Henry B. Gonzalez Convention Center and the Lila Cockrell Theater. Mr. Gradney recently purchased and renovated a property a 217 Cactus to be used as the company's headquarters. Prior to the CCBS relocation, the property was vacant and blighted and had become a detriment to the community. 217 Cactus is in the Hackberry Corridor in the heart of the Denver Heights Neighborhood. The property is also is in the Inner City TIRZ boundary and the federally designated "Promise Zone".

ISSUE:
To date, Mr. Gradney has invested $135,820.00 to rehabilitate the two-story 7,000 square foot facility and has recently moved his corporate headquarters into the second floor. Mr. Gradney intends to use the lower level as a commercial kitchen and warehouse for the company's inventory and equipment. These renovations have el...