City agrees to put $62M in Electric Works, with strings attached

The city announced Wednesday it entered an Economic Development Agreement with developers, RTM Ventures.

Posted: Jun. 13, 2018 9:14 PM
Updated: Jun. 13, 2018 10:47 PM

FORT WAYNE, Ind. (WFFT) - The city of Fort Wayne is agreeing to put the $62 million into the Electric Works project.

The city released Wednesday a proposed Economic Development Agreement with developers, RTM Ventures.

Conditions in Economic Development Agreement for Electric Works

1. The City must review and approve the environmental conditions found on the site.

2. The City must review and approve the remediation plan for any environmental conditions found on the site.

3. The Developer must provide evidence that the Project can be constructed at the anticipated cost.

4. The City must review and approve commitments to lease a minimum of 250,000 square feet within the Project.

5. The City must review and approve the strategic marketing analysis prepared by the Developer's consultant, RCLCO, Inc.

6. The Developer must demonstrate that the economic impact predicted for the Project will occur within a timeframe acceptable to the City.

7. The Developer must provide a strategic parking plan showing that there will be sufficient parking for the Project.

8. The Developer shall have obtained all approvals for construction.

9. The City shall have approved the final construction plans.

10. The City shall be prepared to close on the financing necessary for the public investment in the Project.

11. The City and the Developer will have executed all other necessary closing documents to consummate the financing of the project.

However, there are 11 conditions that need to be met.

The city and developers have until August 31 to secure the funding for the project and all conditions need to be met by December 31.

RTM Ventures have been asking for $65 million in local funding for the project.

Until Wednesday, Fort Wayne mayor Tom Henry said he was comfortable putting $50 million into the project.

Allen County commissioners and the Capital Improvement Board put in a combined $3 million.

RTM Ventures is also asking for Legacy Funds to be put toward the project.

RTM partner Josh Parker issued a statement after the proposed agreement was release.

"We’re thankful to the Mayor, City Council and county leaders for their support, leadership and considerable efforts that went into this draft agreement. Combined with the $3M already committed by the CIB and County Commissioners, the $62M represented in this draft will complete the full local investment of $65M, an important and notable milestone in this process.

"At the same time, it’s important to remember that this a draft agreement, not a final agreement. We look forward to the next step in this process: working closely and collaboratively with the city and county towards a negotiated, final development agreement that ensures a smart and sound local investment in Electric Works and helps bring high-quality jobs and significant economic impact to our city, county and region.”

The developer will also need to post a $5 million letter of credit to the city in case there a defalt during the project.

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