987 DEVELOPMENTS AND COUNTING

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1

2 987 DEVELOPMENTS AND COUNTING

3 987 developments and counting

4 10,612,796 SQUARE FOOTAGE

5 RECENT PROJECTS MULTI-TENANT SHOPPING CENTERS H O L L A N D M I C H I G A N Type: Multi-Tenant Shopping Center Location: 3530 West Shore Drive Size:12.01 Acres 107,854 Square Feet Tenants: Dick s Sporting Goods, Home Goods, Maurice's, Rue 21, Five Below MOBILE ALABAMA Type: Multi-Tenant Shopping Center Location: Satchel Paige Road Size:78.3 Acres 680,000 Square Feet Tenants: Dick s Sporting Goods, Field and Stream, Costco, Chuy s, Ashley Furniture, Hobby Lobby, Home Goods, Ross Dress For Less, Shoe Carnival, PETCO, Five Guys S A L I S B U R Y N O R T H C A R O L I N A I Type: Multi-Tenant Shopping Center Location: NEC Julian Road & I-85 Size: Acres 110,772 Square Feet Tenants: Belk, Michael s, Ulta, Shoe Carnival C O L U M B U S M I S S I S S I P P I Type: Multi-Tenant Shopping Center Location: U.S. Highway 45 Size: Acres 184,073 Square Feet Tenants: Dick s Sporting Goods and Michaels S A L I S B U R Y N O R T H C A R O L I N A I I Type: Multi-Tenant Shopping Center Location: Julian Road Size: 44.3 Acres 191,000 Square Feet Tenants: Dick s Sporting Goods, Conn s, Hobby Lobby, PETCO B A R N W E L L S O U T H C A R O L I N A Type: Multi- Tenant Shopping Center Location:1115 Dunbarten Road Size: 8.29 Acres 47,268 Square Feet Tenants: Family Dollar, O Reilly Auto Parts, Tractor Supply Company, Morris Comm F A Y E T T E V I L L E N O R T H C A R O L I N A Type: Single Tenants and Out Parcels Location: Lake Valley Road Size: Acres 59,161 Square Feet Tenant: Carmike Cinemas, Out Parcels

6 RELATIONSHIPS

7 Subject Site Aerial

8 Current Property Specifics Hwy 90 and Cole Terrace Two Vacant Commercial Parcels (Approximately 16.8 acres) Blight in the heart of the commercial corridor Existing physical and psychological hurdle for both developers and retailers alike based on the geotechnical history of the property Previous development was razed in 2008 after years of steady decline Over 7 years sitting entirely vacant, undeveloped Current City and County Taxable Value is only $1,156,050 Current Annual Ad Valorem Tax Contribution City - $4676 County - $9266

9 Subject Site Aerial

10 Key Takeaways: Value Currently Delivered to Columbia County by the Property Jobs None Sales Tax Revenue - $0 Rent Tax Revenue - $0 Property Tax Revenue - $9266 Blight in the heart of the Commercial Corridor Property that has been attempted to be developed by current ownership over several years without success and stands to remain undeveloped without a successful public-private partnership

11 Lake City Concept Plan

12 Proposed Project Summary Approximately $19.6MM Total Capital Investment Approximately 132,200 SF of Shopping Center Retail Developed in a single phase Summer 2017 Target Opening National, Top Quality Retailers 2-3 Outparcel Developments Proposed Full Service Restaurant Proposed Multi-Tenant Building Proposed Fast Food User Installation of Public Utility Infrastructure (Water and Sewer) On-site and along Cole Terrace Road

13 Key Takeaways: Projected Value Delivered to Columbia County by redevelopment of the Property $2.3MM in local material expenditures Jobs During Construction, 200+ Upon Opening $17.6MM Economic Impact from Job Creation County Sales Tax Revenue - $534,000 annually based on FL State Shopping Center Sales per Square Foot Average ($311/SF) Rent Tax Revenue Additional 1% on rents collected on the project Property Tax Revenue - $9266 (YR 1-10), $96,180 (Post YR 10) Elimination of blight and the associated negative externalities Further validates the market and provides a spark for future development

14 Public-Private Partnership Ask I listened to the positive and negative feedback from the Commission, took into consideration the constructive criticism related to our partnership ask. Key Takeaways from Previous Commission Meeting Upfront cash consideration is troubling Use of County services or materials is troubling An Ad-Valorem Rebate is less troubling as it places 100% of the risk squarely on the Developer and the Project Armed with this additional direction provided by the Commission, I went back and continued to massage the project for ways to reduce the burden. By taking on some additional development risk and adding additional small shop square footage I was able to repackage a new proposal for the Commission

15 Public-Private Partnership Ask The landscape of retail shopping center development has continued to evolve over the past several decades, and public-private partnerships have been increasing important to projects; particularly in secondary and tertiary markets like Lake City There is a day-one shortfall of approximately $1.45MM in order to reach required investment hurdle The City Council has voted to approve a 10-year rebate as well as provide a contribution to cover the cost of public infrastructure installation and misc. associated fees. This greatly reduces the project shortfall and with the support of County Commission we can work together to close the remaining gap. SOLUTION 10-Year Rebate of the County s share of incremental ad valorem property tax created by the redevelopment project (approx. $87k per year)

16 Gleason Place Redevelopment Before and After Benefit Summary Current Projected Property Value $ 1,156,050 $ 12,000,000 City Property Tax $ 4,676 $ 48,528 County Property Tax $ 9,266 $ 96,180 Sales Generated by Property (based on FL Avg - $311/SF) $ - $ 41,114,200 State Sales Tax Revenue (7% Total) $ - $ 2,877,994 Jobs 75+ Jobs During Construction 200+ Jobs Upon Opening - (178 Direct, 11 Indirect and 30 Induced) Job Creation Economic Impact (Per JobsEQ Q Data) $ - $ 17,646,816 In addition, the Public Infrastructure network will be greatly enhanced through the installation of new water and sewer facilities Immediate Incremental Value to Other Parties Columbia County School Board $ 76,981 Lake Shore Hospital Authority $ 10,432 Suwannee River Water Management $ 4,450 Other Misc Benefits $2.5MM in projected local material expenditures during construction Elimination of blight in the heart of the commercial corridor and increased retail synergy in the corridor Potential catalyst for future development activity Reduction in existing sales tax revenue creep to surrounding municipalities Significant Ad Valorem Property Tax Collection after the initial rebate period