Title
Resolution Approving a Cooperation Agreement Between the City of Hampton and the Economic Development Authority of the City of Hampton, Virginia and Authorizing Execution of Same for the KB Riverdale, LLC Project
Purpose
PURPOSE/BACKGROUND:
The Riverdale Shopping Center is currently an aging and underperforming shopping center with a high vacancy rate. Redevelopment of the site is critical to sustain existing retail and tourism activity and support existing assets. Upgrading of the center will support the district by adding critical mass needed to further enhance Coliseum Central’s reputation as a retail destination. It will also further the city’s efforts to attract visitors who seek new retail, restaurant and entertainment venues; provide new shopping options to Hampton residents, and assist in increasing the tax revenue to the city. Recent market studies of the Coliseum Central district suggest any new development should not replicate the offerings at Peninsula Town Center, but rather complement it.
In accordance with the City Council strategic initiatives, staff has assisted a well-established developer,KB Riverdale, LLC, to purchase and revitalize the shopping center as well as to secure a high-quality grocer to anchor the development. Due to the high cost of infrastructure improvements and new storm water regulations, the developer requested financial assistance from the EDA to offset the increased development costs.
Staff negotiated the terms and conditions for a performance incentive, equivalent to a maximum of $4,250,000.00, payable over a 10 year period. The incentive is comprised of a reinvestment of net new incremental local sales tax revenue generated at the Project subject to a capital investment of at least $60,000,000 by the developer and other performance criteria. The incentive grant will assist KB Riverdale, LLC in offsetting these increased costs and will induce the redevelopment and repositioning of 50 acres +/- of what is now...
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