Even while tenants and financing for the first portion of the City Foundry project in Midtown are still being finalized, the developers behind it are seeking funding for the next phase.
Representatives from the Lawrence Group, the 最新杏吧原创 firm planning to redo the Federal Mogul industrial site along Highway 40 (Interstate 64) into a retail, office and restaurant hub, say interest from potential tenants means they have to line up financing now. They made their case Wednesday to the city鈥檚 Tax Increment Financing Commission, which reviews requests for the development incentive that allows new taxes generated by a project to be used for financing.
Lawrence Group CEO Steve Smith said two national firms, one retail and one office, are interested in significant spaces in the development. The first phase, he said, can鈥檛 accommodate them. 鈥淭hey physically won鈥檛 fit,鈥 Smith said.
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The $97 million second phase calls for 45,000 square feet of retail space and two office buildings with a total of 130,000 square feet of space. About $17 million in TIF assistance would supplement $45 million in loans, $25 million in private investment and funds from other sources.
鈥淲e have an institutional equity source,鈥 Smith told the commission, referring to the investor in the project. 鈥淲e are really close to bringing them on board.鈥
Meanwhile, , with plans to redo the main foundry as a food hall and redo other buildings on site for retail and office, still hasn鈥檛 moved beyond cleanup. The city has already approved a $19.4 million TIF for that phase.
Smith said the first phase鈥檚 financing was still being negotiated but that he hoped to have a deal in time to begin construction in the first quarter of 2018.
As for tenants in the initial phase, Smith said 鈥渨e have commitments, not leases yet鈥 for two-thirds of the space planned.
The second phase is scheduled to open in the fall of 2019, trailing the first phase slightly. City staff recommended approval of the TIF because more new tax revenue would still flow to public entities than if the site remained vacant. One city resident urged the commission to look at a community benefit agreement that would direct some financial gains from the central corridor project to struggling neighborhoods on the north or south sides.
The TIF commission did not make a recommendation and planned to take a vote Oct. 24 because a required public notice was not published on time.
