News release from the City of Fort Wayne:
RTM Ventures and Mayor Henry announce language in economic development agreement for Electric Works has been approved
Agreement moves forward to governing bodies as progress continues
(August 30, 2018) – RTM Ventures and Mayor Tom Henry today announced the language contained in the economic development agreement for the Electric Works project has been agreed to by the development team and the City of Fort Wayne Administration.
The economic development agreement is now ready to be presented to the local governing bodies responsible for approving elements of the Electric Works project.
The Fort Wayne Redevelopment Commission will be the first entity to consider the development agreement. If the agreement is approved by the Fort Wayne Redevelopment Commission, that body would serve as the signatory for the City of Fort Wayne on the agreement and would oversee implementation and compliance of the terms and conditions of the agreement and coordinate efforts with the other local entities from which approvals will be required. The Fort Wayne Redevelopment Commission will consider the development agreement at its next meeting at 4 p.m. Monday, Sept. 10 in Room 030 of Citizens Square, 200 E. Berry St.
Local governing bodies that would also be responsible for considering and approving public funding set forth in the economic development agreement for the Electric Works project include the Fort Wayne-Allen County Capital Improvement Board (CIB), Fort Wayne City Council, Allen County Board of Commissioners, and Allen County Council. In addition, the Fort Wayne Board of Public Works would have a role with approvals related to infrastructure for the project, the Fort Wayne Redevelopment Authority would implement elements of the local public funding transaction and the Legacy Joint Funding Committee will likely be asked to consider a financial request from RTM Ventures. While no official timetable for the project to go before the governing bodies has been established yet, both the City and RTM will begin seeking the necessary approvals as soon as possible.
Highlights of the economic development agreement are included below. The entire summary of the agreement and an approval process summary are available on the attached sheets:
- To incentivize the Electric Works Project, the City agrees to pursue the authorization of $62 million ($3 million has already been approved) in local public funding to the Electric Works Project, subject, however, to certain procedures and conditions.
- In consideration of the local public funding to the Electric Works Project, the Developer agrees to develop, finance, construct and operate the Electric Works Project as described within the Economic Development Agreement.
- City agrees to pursue the authorizations and approvals necessary for the City to provide the public funding on or before October 31, 2018, subject to an extension to November 30, 2018, if more time is needed.
- Developer agrees to provide the commitments and approvals necessary for the Developer to develop, finance and construct the Project within 60 days of the City’s receipt of authorizations and approvals, but no later than December 31, 2018.
- City and Developer have agreed on a set of conditions to closing that must be satisfied by December 31, 2018, and an additional set of conditions to closing that must be satisfied by June 30, 2019.
- Upon satisfaction of all conditions to closing, City and Developer have agreed that the closing of all financing for the Project, including all public and private loans and investments, shall occur simultaneously.
“I’m encouraged by the progress we’re making with Electric Works as we work together to continue the positive momentum and investments we’re experiencing in Fort Wayne. This is an important next step in the process, and I want to see the project become a reality and succeed,” said Mayor Henry. “We recognize that successful public-private partnerships are critical to advancing our community and region as a point of destination for job and business growth, strong neighborhoods and quality of amenities that are attractive and unique. My administration, our colleagues in Allen County government, the CIB and RTM have been working diligently for several months and will continue to work in a collective effort to determine the best path to help Electric Works move forward.”
“We are excited to reach this important milestone – and we are thankful to the Mayor, his team and to the many more community leaders who played critical roles in getting us here,” said Josh Parker of RTM Ventures. “We appreciate the Mayor’s leadership and collaboration – collectively, we understand that local financing for Electric Works enables us to unlock extensive state and federal tax credits, as well as private investment, in our community. Given the strong public support for Electric Works, we’re excited about the next phase of this process, starting with the Redevelopment Commission on Sept. 10.”
Electric Works is a mixed-use district of innovation, energy and culture, developed as a public/private partnership between RTM Ventures and the City of Fort Wayne. A redevelopment and adaptive re-use of the former General Electric campus, Electric Works includes 39 acres, 18 historic buildings and more than 1.2 million square feet of space that will maximize the facility’s density of existing structures and offer a broad array of uses – including innovation/education, residential, commercial, community and hospitality.