TO: Mayor and City Council
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 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 project cost is $13,159,012.
Mr. Bays is requesting the following economic incentives package:
- One-time upfront payment of $400,000 from the Downtown Redevelopment Project Area TIF District upfront
- Annual tax increment minus $25,000 of TIF Funds for up to 14 years in each tax year.
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.
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 project will also add this building to the property-tax rolls.
On August 29, the Land Use & Economic Development Committee unanimously voted to recommend approval by the city Council.
RECOMMENDATION:
recommendation
The Land Use & Economic Development Committee recommends approval of the resolution authorizing a TIF Development Agreement with 311 Ottawa Building LLC.
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