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Council authorizes amended performance agreement to extend tax abatement to new tenant
Summary
Council approved an amended and restated performance agreement allowing Western Smokehouse Partners LLC to assume the prior tax-abatement terms tied to industrial revenue bonds originally issued for the Soft Surroundings project, enabling the new tenant to occupy and benefit from the site's existing incentives.
The City Council on Aug. 26 approved an ordinance authorizing an amended and restated performance agreement so a new tenant can benefit from an existing tax abatement tied to industrial revenue bonds issued in 2016.
City counsel explained the city issued taxable industrial revenue bonds on Nov. 18, 2016, for the Soft Surroundings project in the principal amount of $12.5 million. Because that tenant closed, the property owner, East Liberty Street Owner LLC, marketed the building and has arranged a sublease to Western Smokehouse Partners LLC. Counsel said East Liberty Street Owner LLC, Western Smokehouse Partners and the city agreed to an amended, restated performance agreement that would allow the new tenant to receive the same terms and conditions of tax abatement as the prior agreement.
Staff recommended two readings by title only and passage of the ordinance authorizing the city to enter the amended agreement. The council moved for reading and passage of bill number 2020449 and recorded affirmative responses in the roll call.
The action permits the new operator to proceed under the existing performance agreement framework; staff said the contract and ordinance had been posted as required and recommended moving forward.
