Title
Request by Developer of the Summit Fair TIF Project for (1) approval of a lease to Dick’s Sporting Goods, a business currently located in the Summit Woods shopping center, (2) a determination by the City Council that Dick’s Sporting Goods would not be a direct beneficiary of tax increment financing or other development financing through a lease of property in the Summit Fair TIF redevelopment area and (3) approval of a Relocation Agreement to provide a payment to the City for the vacated store location.
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Key Issues:
• Dick’s Sporting Goods (“Dick’s”) is an approximately 30,700 square foot store that is currently open in the Summit Woods Shopping Center.
• RED Development (“Developer”) has requested that the City allow the relocation of Dick’s into the Summit Fair Shopping Center, for the construction of a new approximately 50,000 square foot store. Dick’s desires the new location in order to stay in the City and operate in a larger store.
• Developer’s proposed schedule would have the new Dick’s store open in Summit Fair in the 1st quarter of 2017 and then close the Summit Woods store immediately thereafter.
• The Summit Fair TIF Contract (Section 19.D) provides that a store which is currently open in the City may not be relocated into the Summit Fair TIF redevelopment area without permission of the City Council.
• Developer requests the Council’s permission for the store relocation. Developer proposes a contractual arrangement with the City by which Developer will guarantee a payment to the City in an amount equal to the projected City sales tax revenues from a new store opening in the vacated Summit Woods space over a period of two years from the date that the Dick’s store closes. Developer assumes that a new business in the prior Dick’s Sporting Goods location would generate $291,600 in City sales tax revenues over a two year period, which i...
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