$50,000 More for Former Senior Citizen Center Deal

WHEREAS, the City is considering establishing a Small Business Economic Development Grant Program; and 

WHEREAS, Mike Allen Real Estate Holdings, LLC and Allen Group Enterprise, LLC dba BMW Motorcycles of Greater Cincinnati has proposed the redevelopment of 140 N. Verity Parkway, currently a vacant site, which will result in the creation of 12 new permanent full-time jobs and one permanent part-time job and approximately $375,000.00 in new annual payroll; and

WHEREAS, the City is interested in providing an incentive for the growth of small businesses in Middletown;

NOW, THEREFORE, BE IT ORDAINED, by City Council of the City of Middletown, Butler/Warren Counties, Ohio, that:

    Section 1 The City Manager is hereby authorized to enter into a Pilot Agreement for a Small Business Economic Development Grant with Mike Allen Real Estate Holdings, LLC and Allen Group Enterprise, LLC dba BMW Motorcycles of Greater Cincinnati, not to exceed $50,000.00, subject to the terms and conditions of the agreement to meet job creation and payroll creation targets, and the one year occupancy requirement. The agreement shall be in a form substantially similar to Exhibit “A” attached hereto and is subject to approval by the City Manager and Law Director.

     Section 2 For said purposes, the Finance Director is hereby authorized to pay a sum not to exceed $50,000.00 from the Property Development Fund (Fund # 499).

     Section 3 This ordinance shall take effect and be in force at the earliest time permitted by law.

 ______________________________ Lawrence P. Mulligan, Jr., Mayor 1st reading: December 5, 2017

2nd reading:_____________ Adopted:_______________ Effective:______________ Attest:_______________________ Clerk of City Council

H:/Law/leg/2017 Leg/O Mike Allen dba BMW Economic Development Grant.doc

3. If Grantee meets the job creation goals set forth in paragraphs one of this Agreement, or is within ten (10%) of same, and takes and maintains occupancy for one (1) year of this formerly vacant space located at 140 N. Verity Parkway, formerly occupied by the Middletown Senior Center with the corresponding parcel number of Q6511011000034, Q6511014000060, Q6511014000059, Q6511014000057, Q6511014000055, the Grantee shall receive a Small Business Economic Development Grant for vacant space relocation in the amount of fifty thousand dollars ($50,000.00). 

DATE: November 9, 2017

TO: Douglas Adkins, City Manager

FROM: Jennifer Ekey, Economic Development Director Prepared by: Alexis Fitzsimmons, Assistant Economic Development Director

PURPOSE To authorize the City Manager execute a grant agreement with Mike Allen Real Estate Holdings, LLC dba BMW Motorcycles of Greater Cincinnati (the Developer).

BACKGROUND and FINDINGS

Mike Allen Real Estate Holdings, LLC dba BMW Motorcycles of Greater Cincinnati is purchasing parcels Q6511011000034, Q6511014000060, Q6511014000059, Q6511014000057, Q6511014000055 from the City of Middletown for his project to renovate the old Middletown Senior Center building located at 140 N. Verity Parkway and create a BMW branded motorcycle dealership at that location. The dealership will prove new and used motorcycles, parts, service, and general merchandise to its customers. The project would include an investment of $1.273 million dollars in construction and upgrades to the facility, including separating all utilities from the City’s municipal building, and will create twelve (12) new full-time jobs and create $375,000 in new payroll. The project will start construction during the first quarter of 2018 and be completed by December 31, 2018. This grant will go towards the cost of separating the HVAC, water, electric, and gas utilities from the City Municipal Building. The Developer will be participating in the newly formed PACE program to assist with this transition and other energy efficiency upgrades. The total cost of separating the utilities from the City is approximately $200,000.

ALTERNATIVES Not providing the grant.

FINANCIAL IMPACT The City will benefit from the separation of the utilities from the old Senior Center Building. EMERGENCY/NON EMERGENCY 1st Reading on December 5th and 2nd Reading to follow on December 19th, 2017. Small Business Economic Development Grant Mike Allen Real Estate Holdings, LLC dba BMW Motorcycles of Greater Cincinnati

DEPARTMENTAL CLEARANCES Law Department 

ATTACHMENTS Grant Agreement