The property on the northeast corner of Vermilion and Seminary streets is slated for a new law office building under a proposed redevelopment agreement with the city.
The city council’s Public Services Committee on Tuesday will consider authorizing assignment of contract and purchase of real estate at 401 N. Vermilion St.
Aldermen also will consider approving a redevelopment agreement for that property in the Midtown Tax Increment Financing District, redevelopment project area with Badu N. Patel.
Patel would have a law office at the site, across from the Danville Public Library.
Mayor Scott Eisenhauer said the site has had an auto garage and U-Haul trucks there. The property is owned by Harold L. Smith. The property is being purchased for $55,000.
Once demolition activities are completed, the city will sell the development project site to the developer, Patel, for $35,000, according to the agreement.
The city also agrees to fund, up to $20,000, curbing and sidewalk work
Operations are expected to begin within one year of the acquisition of the site from the city, by fall of 2014.
Developer construction costs are expected to be at least $230,000. They are estimated at closer to $265,000.
Construction jobs are estimated at 12, with office jobs estimated at five.
As part of the TIF reimbursement agreement, city obligations to reimburse Patel for any eligible redevelopment project costs under the agreement would not exceed $25,000 (toward land acquisition and site preparation).
The projected total new equalized assessed valuation for the property is $70,000, compared to the initial EAV of $24,818.
Tax increment allocations and eligible redevelopment project costs according to the agreement are to continue until fully paid or for 12 years, whichever comes first.
“It’s a beautiful building,” Eisenhauer said about the plans.
In other business, the committee will consider:
An agreement with a health insurance broker. Aldermen will again hear from health insurance brokers for aldermen to ask questions. Eisenhauer said a recommendation is expected to come out of this meeting to be forwarded to the full city council’s Aug. 6 meeting.
City council members earlier this week heard again from two insurance brokers, Jim Crose and Old National Insurance.
Those two brokers and Wells Fargo have been invited back again to speak with aldermen.
City officials are looking to hire a broker to help with the Federal Patient Protection and Affordable Care Act because it will have an impact on health insurance provided to city employees and retirees.
Purchasing right-of-way in the 3600 block of North Vermilion Street for $10 from Deborah Klein Investments for widening North Vermilion Street for a dedicated right turn land at the existing Tractor Supply entrance as part of the Meijer project.
Amending a resolution pertaining to the redevelopment agreement with McDonald’s.
Members of the city council’s Public Services Committee will meet at 6 p.m. Tuesday at the Robert E. Jones Municipal Building, 17 W. Main St. The City/County Public Safety Building Committee will meet at 6 p.m. Wednesday at city hall to discuss replacing the main front sidewalk at the PSB, parking improvements at the PSB and additional masonry and caulking at the PSB.