Title
Staff Update, Board Discussion and Possible Action on Request from TJM Research, LLC and MCREHCO Holdings, LLC (Project 18-06) to Terminate Their Economic Development and Performance Agreement.
Requested Action
Approve the Termination Agreement with TJM Research and MCREHCO Holdings, LLC
Recommendation
Staff recommends the Board approve the Termination Agreement with TJM Research and MCREHCO Holdings, LLC
Description/History
In September 2018, MEDC entered into an Economic Development and Performance Agreement with TJM Research, LLC and MCREHCO Holdings,LLC to assist with certain costs related to the development of a proposed 2,500 sq. ft. office warehouse facility located at 605 S. 6th Avenue. The agreement provided for reimbursement of actual cost of drainage improvements and a fire hydrant not to exceed $8,000. The agreement also required TJM to make a minimum capital investment of $320,000, receive a Certificate of Occupancy by August 31, 2019 and create four new jobs.
On June 18th, MEDC was informed by TJM that the project had encountered some significant delays and would not be receiving a Certificate of Occupancy by August 31, 2019. In addition, there have been some significant design changes to the building that no longer require the drainage and fire hydrant improvements. Therefore, TJM has officially requested termination of this agreement. MEDC legal counsel has prepared the attached Termination Agreement.
Justification
N/A
Funding Source
4A
Prepared By
Richard Nevins, Director Economic Development, 817-728-3652