TO: CRA Board of Commissioners
FROM: Jeff Costello, CRA Executive Director
DATE: June 11, 2019
Title
GROUND LEASE AGREEMENT - HATCHER CONSTRUCTION & DEVELOPMENT, INC. - 20 - 26 NW 6TH AVENUE
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Recommended Action:
Recommendation
Approve the attached Ground Lease Agreement with Hatcher Construction & Development, Inc. for the properties located at 20 and 26 NW 6th Avenue.
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Background:
At the CRA Board meeting of December 11, 2018, the Board considered a letter of interest from Hatcher Construction & Development, Inc. (“Hatcher”), a local general contractor whose business is currently located at 700 W. Atlantic Avenue, to develop the vacant CRA-owned properties located at 20 & 26 NW 6th Avenue (approximately 0.45 acres) in the NW 600 Block of West Atlantic Avenue. Hatcher seeks to develop a 6,000 square foot building, of which Hatcher will occupy 2,000 square feet and the remaining 4,000 square feet may be used as rental space for retail business or office space for a small business or non-profit organization. The Proposal also included the following:
· Land lease for the properties and utilize the Land Value Investment Program (“LVI”) with an option to buy the land at any time during the lease agreement.
· Purchase the land at the market value of the year the initial lease was signed.
· Utilize CRA’s parking lot incentive (Development Infrastructure Assistance Program - DIA) for funding the construction of the parking lot, which would be available for public parking after 5:00 p.m. on weekdays and on weekends.
· Utilize the CRA’s incentive programs: LVI and DIA with Local Hiring Bonus Program.
The proposal provides an opportunity for a local small business owner to participate in the redevelopment effort and provide a permanent business location within the West Atlantic Corridor, while providing space for other local small businesses.
Ground Lease Agreement:
Hatcher proposes to lease the land from the CRA for 40 years through the Lan...
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