TO: Mayor and Members of City Council
THRU: Jay Reinstein, Assistant City Manager
FROM: Cynthia Blot, Economic & Community Development Director
DATE: June 25, 2018
RE:
Title
Center for Economic Empowerment & Development (CEED) Kitchen Incubator Agreement Extension
end
COUNCIL DISTRICT(S):
Council District(s)
2
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Executive Summary:
This item is presented for consideration to request a one year extension for the Kitchen Incubator agreement between the City of Fayetteville and Center for Economic Empowerment Development (CEED) effective June 30, 2017- July 31, 2018.
Background:
In April 2015, City Council provided an initial disbursement of $100,000 for design work on a proposed CEED-Incubator Kitchen. Additionally, City Council approved $350,000 toward the development of the CEED-Incubator Kitchen. The agreement required a detailed plan of action, with documented and itemized budget showing how CEED can and will (utilizing the $350,000 and any other CEED-acquired, non-City Funds) move forward with the project to fully fund a Culinary Incubator/Training Station as first proposed or since modified. CEED agreed to make presentations to City Council on deliverables for each phase of completion and/or any modification to the plans.
On June 13, 2017, the City Manager received a letter from CEED as a request to obligate funds for the construction of Phase 1 of the CEED Culinary Incubator. Their plan of action has been delayed on several occasions with the original groundbreaking scheduled for November 2017, then March 2018 and now to a yet determined date
On March 5, 2018, Ms. Hrabovsky, CEED Executive Director, updated Council on the project delays. At that time, Council requested that she return to a future council meeting when construction bids were received, a contractor selected, and to provide a bank/lender commitment letter detailing secured funding for the project
On June 11, 2018 Ms. Hrabovsky requested an extension to the agreement dated June 30, 2017. CEED anticipated a letter of commitment from the lender on June 15, 2018, but the lender has been unable to provide a commitment for the proposed project.
Issues/Analysis:
The bank has required CEED to provide additional documents prior to receiving their letter of intent. They is currently awaiting a TRC review date, PWC’s final approval and the DOT certification for the driveway.
Budget Impact:
N/A
Options:
Approve the request for a one year extension on the agreement between the City of Fayetteville and Center for Economic Empowerment Development through July 31, 2019.
Deny the request for a one year agreement extension and provide direction to staff.
Recommended Action:
Approve the request for a one year extension on the agreement between the City of Fayetteville and the Center for Economic Empowerment Development.
Attachments:
Original Agreement
Revised Agreement