The Economic Development Department is recommending adoption of a resolution by the Orlando City Council designating a site owned by T.C. Two-Colonial, LLC as an Orlando Economic Enhancement District (OEED) site pursuant to Florida Statute 376 (FS 376).  The site is approximately .57 acres in total, generally located east of North Ferncreek Avenue and north of State Road 50 (East Colonial Drive) as shown on attachment "A".  In November of 2002, the Orlando City Council approved a Downtown Economic Enhancement District (DEED)/Downtown Model Resolution, pursuant to FS 376.  The State of Florida established the Brownfields Program to assist local governments with redevelopment projects.  The State Brownfields Program provides economic incentives and resources to property owners, businesses and local governments to redevelop designated brownfield sites and/or areas.  In order to receive the program incentive(s), a site or area must be designated a brownfield.  

Notification of the City’s intent to adopt a resolution was placed in the Orlando Sentinel on November 30, 2015, giving interested parties the opportunity to appear and be heard regarding this resolution.  A second advertisement will be placed in the Orlando Sentinel on December 9, 2015.  Florida Statute requires that one of two public hearings be held after 5:00 p.m.  At the present time there is not a scheduled evening City Council meeting.  Because of the timeline involved in the Brownfield designation process, City Council may vote to hold this second public hearing during the scheduled 2:00 p.m. meeting.  This motion must be approved by a majority plus one vote.   

The State of Florida created the Brownfield Program in 1997 and authorized local governments to designate areas, targeting them for redevelopment.  The key objectives of the State of Florida program include; community economic enhancement, increased tax base and tax revenue, job creation, better utilization of community resources, improved quality of life, and environmental improvements.

The designation is recommended because it streamlines the incentive process when a project is proposed and makes the incentives available immediately to the client.  The following is a listing of incentives that become available upon adoption of the T.C. Two-Colonial, LLC Resolution, FS 376: 

·         Job creation bonus with no requirements ($2500 under the State of Florida Brownfield Program);

·         Tax credit of 35% on voluntary cleanup costs; 10% additional credit during the final year of cleanup;

·         Low interest loans for the purchase of liens, tax certificates, or other claims;

·         Risk-Based Corrective Action principles apply;

·         Sales tax credit on building materials used for the construction of a redevelopment project (residential or mixed use);

·         Up to 5 years of state loan guarantees of loan loss reserves;

·         Grants/loans available for cleanup (if applicable); and

·         Technical assistance from state university system.

Upon adoption of the resolution, T.C. Two-Colonial, LLC will be able to qualify for various applicable incentives under the Brownfield's program. 

T.C. Two-Colonial, LLC recently purchased the subject property, an abandoned former gas station.  A resolution from the City is necessary in order for T.C. Two-Colonial to negotiate a Brownfields Site Rehabilitation Agreement (BSRA) with the Florida Department of Environmental Protection to pursue cleanup of contamination on the site. 

T.C. Two-Colonial, LLC has plans to redevelop the site.  However, the existing environmental concerns will complicate its efforts to redevelop the property without the Brownfield designation.  When clean up is complete, T.C. Two-Colonial has plans to redevelop the property with a mixed-use project, resulting in creation of at least 15 new jobs.  T.C. Two-Colonial is an affiliate of Kobe Japanese Steakhouse, with seven (7) restaurants in and around the City of Orlando.  It also owns other developments in close proximity to the property.

The proposed redevelopment is consistent with the City's comprehensive plan and is an allowable use under the land development code and future land use designation for the site.  The project is consistent with the State's objectives for the Brownfields program, which include community economic enhancement, increased tax base and tax revenue and job creation.