Correspondence 1992-1993 Waldron

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� M E M O R A� D U M TO � Steve Sarl�ozy F'ROM: Craig A. Waldron� • G DA'I'E: July 6, 1992 �`'�� SUBJECT: Har Mar Jiffy Lube Project Summary: 1. Tf you will recall, the prelYminary PUD for the Jiffy Lube Sit� and the removal o� the Total gas station at the Har Mar Site was approved by the City Council. The Council required that brick be part of the Jiffy �ube facility. 2. Subsequently, based on the new �costs that had surfaced regarding this projec�t, it became extremely difficult for the project to move forward based on the lack of reasonable return on investment for the de�eloper. The possibility of cantinued use of th� Total site f�r a Ji f�y Lube resurf aced . 3o The Mayor subsequently called ar�d asked that we review � the poten�ial use af TIF with respect �to making absolutely sure that the Total gas station was incle�d re�noved and that the appropriate Har Mar imprc�vements occurred. 4. Based on that concern, staff inet with �he developer and reviewed opt�.on�s that would mak� the project f1doable°' . Essentially the staff would invest $23,0�0 in tax increm�a�� to "clean up" the Total site. Thus the TIF would be ut�.lized far environmental testing, demolition, tank removal and any environmental remediaician that raould be required. The Narth side of g3ar Mar would be subs�antially improved with Marshalls' proposed. improvement, the elimination of the gas �tation, the remed�ation of any env�ronamental problems, and the improv�d parking and traffic flow. 5. The $23,000 investment, re�aresents a r�turn on equity of 16o for the developer, however his return on i,nvestment is only in th� range of 2.380. �ased on the M�ayor's concern that the Tot�a1 gas sta�ion be removed as a priority, staff would recommend that we woulcl move fo�ward with this funding scenarioe � U