ITEM TITLE:
Title
Consider approving a resolution amending the City of Lawton FY25 Budget, as amended, by appropriating up to $1,600,000.00 to the General Fund to provide assistance in development financing to Fisher59 Properties, LLC per the Redevelopment Agreement.
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INITIATOR: Rebecca Johnson, Finance Director
STAFF INFORMATION SOURCE: Rebecca Johnson, Finance Director
BACKGROUND: The City, LEDA, LEDC, and Fisher59 Properties, L.L.C., a Texas limited liability company (“Fisher59” or “Redeveloper’) previously entered into a Redevelopment Agreement dated April 23, 2024 (“Agreement”). Under Section 1.2 of the Agreement, the City agreed to provide assistance in development financing to Fisher59 by reimbursing the actual out-of-pocket costs and expenses associated with the design and construction of the Public Improvements, with an Initial Cap of $1.6 million. Thereafter, at the request of Fisher59, on June 25, 2024, the City Council approved Resolution No. 24-142, increasing the Initial Cap to $2.9 million (now the Adjusted Cap). The Redevelopment Agreement specified that Fisher59 would be reimbursed the actual out-of-pocket costs and expenses associated with the design and construction of the Public Improvements following construction, City inspection, and acceptance of the improvements by the City Council. $1.3 million was budgeted in the 2019 Capital Improvement Fund for the reimbursement to Fisher59. Since Resolution No.24-142 was approved after the FY25 budget was approved, a budget amendment is needed to appropriate up to $1.6 million to the General Fund for the remaining reimbursement expense.
EXHIBIT: Resolution No. 25-_____
KEY ISSUES: N/A
FUNDING SOURCE: General Fund
STAFF RECOMMENDED COUNCIL ACTION: Approve Resolution No. 25-_____ amending the City of Lawton FY25 Budget, as amended, by appropriating up to $1,600,000.00 to the General Fund to provide assistance in development financing to Fisher59 Properties, LLC per the Redevelopment Agreement.