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Consider approving a resolution that would increase the amount of assistance in Development Financing included in the Redevelopment Agreement between the City of Lawton, the Lawton Economic Development Authority, the Lawton Fort Sill Economic Development Corporation, and Fisher59 Properties, LLC, with said increase to be based on updated cost estimates for Public Improvements associated with the project.
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INITIATOR: Dewayne Burk, Deputy City Manager
STAFF INFORMATION SOURCE: Dewayne Burk, Deputy City Manager
Richard Rogalski, LEDA Executive Director
BACKGROUND: On April 23, 2024, the Lawton City Council approved a Redevelopment Agreement by and among the City of Lawton, the Lawton Economic Development Authority, the Lawton/Fort Sill Economic Development Corporation, and Fisher59 Properties, LLC, for the development of a 100,000 sf distribution center within the Airport Industrial Park. The agreement provided financial assistance to the Redeveloper via the reimbursement of an amount equal to the actual out-of-pocket costs and expenses (including all hard and soft costs and all bonding costs, including maintenance bonds) incurred by the Redeveloper in connection with the design and construction of the Public Improvements associated with the project. Per the agreement, said reimbursement is referred to as the "Initial Cap" and is limited to $1.6 million. However, the agreement also provided that the Redeveloper could submit an engineer's detailed cost estimate, or the construction contract with Redeveloper's contractor, prior to commencing construction of the Public Improvements specifying the costs of the Public Improvements, including without limitation, a contingency and any soft costs. In the event this documentation indicates that the cost of the Public Improvements will exceed the Initial Cap, City staff would, within fourteen (14) days of notification, present the updated cost estimate to City Council for consideration. If ...
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