DANVILLE — The Danville City Council approved an agreement making way for redevelopment of the former Turk Furniture building in downtown Danville.
The council at its Tuesday night meeting voted 12-0 to approve the agreement with Stadium Club, LLC for the redevelopment of 200 N. Vermilion St. Alderwomen Carolyn Wands and Heidi Wilson were absent.
Developers have announced Firewater BBQ & Brew is one of the restaurants expected to open next year in the building. Per the city agreement, two businesses must be open within two years.
Danville Community Development Administrator Logan Cronk said the agreement now will be executed and the building permit process will begin.
The developer’s investment is estimated at $1.8 million. The city’s incentives will total $600,000 — $400,000 from general funds and $200,000 from the Downtown Tax Increment Financing District. Cronk said that’s all the TIF fund has to offer. The council approved moving $200,000 from the TIF fund reserves.
He said projected paybacks to the TIF fund would see equalized assessed valuation increases within two to three years, and from sales tax within five to seven years.
According to the agreement: current EAV (four parcels) $115,607; Projected improved EAV $500,000.
Cronk said at least four businesses could locate in the building, with at least two to three restaurants on the first floor, and the second floor is still being looked at.
“It could be more business or go residential,” Cronk said about the second floor.
According to the agreement: total project costs are estimated at $1,840,000 and include first floor improvements to fully build out a restaurant facility with estimated annual sales of $2 million. Further, the first floor shall be completely renovated in a fashion capable of housing one to two additional restaurants. Developer represents that the proposed sales projections of $3 million and the future EAV of $500,000 ($1,500,000 market value) which are utilized by the city in projecting return on investment are appropriate, if not conservative.
Reimbursement of eligible redevelopment project costs are the out-of-pocket expenditures that the developer incurs in connection with commencing, undertaking and completing the project. Such costs shall include the developer’s out-of-pocket costs for the acquisition of the property for $212,500, developer’s general ad valorem real estate taxes and assessments related to the property between the project commencement date and the project completion date, architects, engineers, design professionals, labor, materials and supplies that are used and/or consumed in constructing the project. The eligible costs shall not include the value of any time expended by the developer itself or any of its members, managers, and/or employees in managing the work being undertaken on the project.
According to the agreement, the developer has acquired the property and seeks to redevelop it by creating space on the property’s ground floor for two or three restaurants or such other appropriate businesses.
“The city believes that by redeveloping the property it will cause the property to increase in value thereby bringing to the city additional property tax revenue and other revenue that may include food and beverage tax and sales tax revenue; and ... the city seeks to cooperate with the developer to redevelop the property by providing the developer with certain city resources; and ... the developer is unwilling to undertake the project without certain assistance from the city.”
Also Tuesday, the council heard from Danville Public Library Executive Director Jennifer Hess about a library update. In a most recent annual report, the library has about 3,000 library card holders, has seen 54,000 visits by people to the library, has had 126,680 items loaned out, 4,500 reference questions answered and about 1,000 community room usages.
The library has been partnering with the local Master Gardners to plant native plants at Seminary and Vermilion streets which are popular with pollinators. The library is planning to extend the native plantings down Vermilion Street and onto Hazel Street.
Hess added that they are coming back to where they were with in-person daily counts at the library pre-covid, when it would see about 9,000 people. It recently had about 8,700.
The council also heard from Keep Vermilion County Beautiful Executive Director Brenda Adams about a city KVCB membership and events.
At this past weekend’s clean-up during the Vermilion River Fall Festival at Ellsworth Park, they collected at least 23 tires out of the water at Ellsworth Park, but not as much trash.
KVCB’s next clean-up is in the Holiday Hills area from 9 a.m. to 11 a.m. Oct. 1. She encouraged anyone to participate.
The next electronics recycling event is from 9 a.m. to 11 a.m. Oct. 15 at Danville Area Community College.
The council also again heard impassioned pleas from two soon-to-be displaced residents with the Kirchner project, asking for assistance. Aldermen were to meet with them too. Project timelines still are being determined.
In other business, the council approved:
- Purchasing 926 N. Gilbert St. for $10,000 for the Kirchner’s project from P. Stephen Miller, successor trustee of the testamentary trust established under the last will and testament of Marion L. Maden of 926 N. Gilbert St.; and 1110 E. Fairchild St. for $70,000 from Sylvia L. Whippo for the Garfield Park project.
- Appointing Alice Payne to serve on the Danville Public Library Board, to finish the term of Linda Bolton, who passed away.
- A real estate option agreement to purchase the former Del Storm Windows Building at 2003 E. Voorhees St. for $250,000 to relocate Dines Machine from Garfield Park for park improvements. TIF funds can be utilized for building improvements. City Engineer Sam Cole said the city plans to have an environmental assessment conducted on the property, but they don’t expect to find anything based on past use. Should something be found, the city can back out of the purchase. The city’s community reinvestment fund will be used for the option agreement.
- Authorizing certain city property for disposal of public works vehicles, mowers and other items and equipment.
- Authorizing application to the Illinois Transportation Enhancement Program for up to $2.5 million to design and construct North Bowman Avenue and East Voorhees Street pedestrian accommodations. A city match of $625,000 would be required with the grant.
- Amending the fiscal year 2022-2023 storm water drainage fund budget by $400,000 through a transfer from fund reserves to pay for maintenance of the detention basin at 3290 E. Main St. within the Lynch Road special service area and other needed projects in that area.
- An $83,682 contract with Hudson Insurance Co. for Danville Mass Transit fleet liability insurance.
- Budget amendments to the fiscal year 2022-2023 city budget due to $2.8 million in additional personal property replacement tax revenue, $75,000 in additional city home rule sales tax revenue and $450,000 in additional hotel/motel tax revenue.