The city of Fort Wayne has pledged public funds – to the tune of $62 million – toward the Electric Works project.
In an economic development agreement summary release by the city of Fort Wayne on Wednesday, the city agreed to provide $62 million in public investment toward the $300 million project. The pledge has conditions, however.
They include, according to the summary:
- The City must review and approve the environmental conditions found on the site.
- The City must review and approve the remediation plan for any environmental conditions found on the site.
- The Developer must provide evidence that the Project can be constructed at the anticipated cost.
- The City must review and approve commitments to lease a minimum of 250,000 square feet within the Project.
- The City must review and approve the strategic marketing analysis prepared by the Developer’s consultant, RCLCO, Inc.
- The Developer must demonstrate that the economic impact predicted for the Project will occur within a timeframe acceptable to the City.
- The Developer must provide a strategic parking plan showing that there will be sufficient parking for the Project.
- The Developer shall have obtained all approvals for construction.
- The City shall have approved the final construction plans.
- The City shall be prepared to close on the financing necessary for the public investment in the Project.
- The City and the Developer will have executed all other necessary closing documents to consummate the financing of the project.
The city promised the public funds “in light of the scale of the initial public investment requested and the potential for substantial future requests for public investment in the Project and in necessary public infrastructure supporting the Project,” the summary said.
In March, Electric Works developers said they requested $65 million in public funds from the city of Fort Wayne, which would be made back in tax revenue in 12 years.
Developer Josh Parker from RTM Ventures said, “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.”
This draft development agreement will now be sent to the developer. Once the developer and the City of Fort Wayne come to a final agreement the proposal will be sent to city council.
“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,” said Parker.
The plan for Electric Works is a mixed-use retail, industry, institution and residential area at the site of the former General Electric campus on the southwest side of downtown Fort Wayne.