Title
Public Hearing - Land Clearance for Redevelopment Authority Redevelopment Plan - Cedar Creek Shopping Center; Cadence Commercial Real Estate applicant
Body
Issue/Request:
This is a request to approve the Cedar Creek LCRA Redevelopment Plan pursuant to the LCRA Act to provide sales and use tax exemption on construction materials for the renovation project that will be undertaken by the applicant at the Cedar Creek Shopping Center. This is a companion request to the Cedar Creek CID that has already been approved by the City Council.
Key Issues:
Sales and use tax exemption on construction materials that are used in the renovation project.
Proposed City Council Motion:
No motion required in the public hearing. An ordinance is on this agenda for approval of the Redevelopment Plan.
Background:
The Redevelopment Project is proposed to be renovation and refurbishment of that portion of the Cedar Creek Shopping Center that is located within the geographic boundaries of the Redevelopment Area. The budget for this work is identical to the budget that was presented to the City Council for consideration and approval of the Cedar Creek CID., which includes a column for reimbursement by the Cedar Creek Community Improvement District (CID) which was approved by the City Council on September 29, 2020 through the adoption of Ordinance No. 8973.
Impact/Analysis:
The overall redevelopment project including land and financing costs is anticipated to cost about $9.43 million. The project exclusive of land and permanent financing costs is about $3.466,000. From these hard costs, Developer projects that the portion to be expended on the purchase of materials is about $1,251,000. The sales and use taxes that the Developer would normally pay on the purchase of those materials is estimated to be about $98,200. Therefore, the value of the requested sales and use tax exemption to Developer from the present request is projected to be about $98,200, which is approximately 2....
Click here for full text