TO: Finance Committee
FROM: Beth Beatty, City Manager
SUBJECT:
title
Resolution to Authorize a TIF Development Agreement with 311 Ottawa Building LLC for the Renovation of 311 N. Ottawa Street
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BACKGROUND:
The property located at 311 N. Ottawa Street, also known as the Murphy Building, was purchased by Mr. John Bays on July 17, 2024. Mr. Bays is a local developer with a national portfolio. The property was sold by the Joliet Housing Authority (JHA) for $4.65 million, and the estimated cost of the project is $13,159,012.
Mr. Bays is requesting the following economic incentives package:
- One-time upfront payment of $650,000 from the Downtown Redevelopment Project Area TIF District upfront
- Annual tax increment minus $25,000 of TIF Funds in each tax year that the TIF district is in effect, but no more than the balance of the current extension or renewal of the TIF district, which will be 12 years from the execution of the agreement.
The Murphy Building is a 13-story building with 139 rental units which was home to low to moderate-income seniors up until its closure approximately a year ago. Mr. Bays plans to repurpose the building as a middle-scale apartment building for working professionals and empty-nesters. The building would contain 92 one-bedroom apartments, five (5) two-bedroom apartments, and 42 studios. In addition, a fitness center, a coffee shop, and a meeting hall would be added.
Renovations on the exterior and interior of the building will include new flooring, wall-covering/tile, millwork-cabinetry, appliances, electrical, plumbing, ceilings, HVAC (Public spaces and AC units in rental units), parking lot asphalt, concrete, landscaping, entry canopy upgrades, and building signage.
This item will be reviewed by the Finance Committee.
CONCLUSION:
The project would renovate a key property in a critical location in downtown Joliet, and bring residents to live downtown, increasing the much-needed foot traffic in the area. In addition, the proj...
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