AGENDA DATE: 10/16/2019
TITLE:
Title
Amendment to Woolen Mills Economic Opportunity Fund Performance Agreement
BODY
SUBJECT/PROPOSAL/REQUEST: Approval of First Amended Economic Opportunity Performance Agreement between the County, the EDA, and Woolen Mills, LLC to revise the project completion date
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Walker, Kamptner, DeLoria, Johnson, Newberry
PRESENTER (S): N/A
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: Albemarle County partnered with the Commonwealth of Virginia to support a project at the Woolen Mills site for the relocation and expansion of WillowTree, Inc. to become the anchor tenant in a redeveloped corporate campus. Albemarle County also provided a $1 million investment in infrastructure for the redevelopment of this unique site. Due to revisions in the construction schedule, the target date of the infrastructure investment performance agreement needs to be amended with an updated date of completion.
STRATEGIC PLAN: Economic Prosperity: Foster an environment that stimulates diversified job creation, capital investments, and tax revenues that support community goals.
DISCUSSION: On September 12, 2018, the Board authorized the County Executive to execute a performance agreement with Woolen Mills, LLC and the Albemarle County Economic Development Authority on behalf of the County regarding the $1 million infrastructure investment associated with this project (Attachment A). This investment targeted the following specific public serving uses:
• public parking for recreational amenities
• pedestrian bridge and trail linkage
• transit improvements - shuttle partnership.
Justification for County incentives for the Woolen Mills redevelopment/WillowTree relocation is as follows:
• Consistent with Comp Plan in areas of land use, economic development, and transportation
• Supports redevelopment, placemaking, and economic development
• Supports growth of a target industry
• Catalyzes business development and vibrancy in a unique economic corridor
• Adaptively reuses historical industrial site
• Activates the Rivanna River corridor and connects recreational assets
• Creates positive tax revenue growth in first year, ROI increases significantly in Year Six
• Helps shift commercial vs residential tax base
• Reduces future service demands
• Stimulates growth in other economic sectors.
When the performance agreement was executed in 2018, the completion date for the project was expected to be December 31, 2019. As the construction progressed, that date has been adjusted by the developer to June 30, 2020. This date change is acceptable to the tenant, WillowTree. The dates referenced in the performance agreement need to be amended to reflect this updated schedule. The attached First Amended Agreement (Attachment B) includes the revised date of June 30, 2020, acknowledges the County’s and EDA’s timely performance, and extends the term to August 31, 2020.
BUDGET IMPACT: No budget impact.
RECOMMENDATION:
Recommendation
Staff recommends that the Board adopt the attached Resolution (Attachment C) to approve the First Amended Agreement and to authorize the County Executive to sign the First Amended Agreement on behalf of Albemarle County once it has been approved as to substance and form by the County Attorney.
ATTACHMENTS:
A - Current Agreement (9/18/18)
B - First Amended Agreement showing changes
C - Resolution