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Breaking down the Eager building numbers

I'm sure curiosity has pushed many of you to check out the renovated Eager building downtown. A grand reopening event was held last month, and more events are planned including the Chocolate Extravaganza on Saturday night.

City Administrator Dan Wietecha sent a press release breaking down the city's assistance in the redevelopment.

Evansville Redevelopment Authority Plays Role in Success of Commercial Renovation

Evansville, WI, 2/1/2008 – The recently completed rehabilitation of the Eager Economy Building in downtown Evansville was the successful result of cooperation between the City and the developer Dysis II.

The project included the complete renovation of the historic building, the second largest retail space in the state when it was built in 1900. The rehabilitated Eager Economy Building now offers over 18,000 square feet of commercial/retail space as well as eight loft apartments on the second floor. The restoration was done according to plans approved by the State Historical Society.

Being such a large and prominent building in the historic downtown, the City Council saw the project as a priority to help anchor redevelopment efforts downtown. The City’s Redevelopment Authority (RDA) helped in securing Community Development Block Grant (CDBG) funding from the Wisconsin Department of Commerce. The RDA also provided tax incremental financing (TIF) as an incentive to the developer.

The developer wanted as many local contractors and trades involved in the project as possible. Approximately 85 percent of the trades were Evansville based.

The Eager Economy Building was a $2.4 million project, including acquisition cost of $315,000 and construction expenses of $2,085,000. Funding came from the following sources:

--$397,000 in developer’s cash equity and $1,220,000 in conventional bank financing.

--$280,000 in CDBG funds from the State of Wisconsin. This is a zero interest loan to be repaid over 25 years. As it is repaid, the city of Evansville may lend the funds out for other rehabilitation projects under similar terms. The loan is secured by a second mortgage on the property and personal guarantees of the developers.

--$503,000 in TIF funds. Although given as a grant, this is in effect an interest free loan from the City to the project. The city will be repaid from the increased property taxes on the building as a result of the redevelopment; the building was valued at $186,700 prior to its rehabilitation. The development agreement includes provisions that the developer guarantee to an assessed value of at least $1.9 million. Projections are for the City to recoup its investment within 20 years.

Charged with encouraging redevelopment of the downtown area, the RDA offers loans and grants to induce property owners to invest in renovations and upgrades to their property. The resulting higher property assessment then generates increased tax revenues which reimburse the city for the TIF funding.

Some examples of joint efforts of the RDA and business property owners in TID #5 include renovation of The Grange Mall (Evansville Pharmacy), Start Printing, and Pete’s Inn. TIF has also been a major funding source for water, sewer, and street infrastructure to benefit all the downtown.

”The RDA is very proud of the work we have done over the past few years to help revitalize Evansville’s business district,” said RDA chairman Chris Eager.

The Evansville Redevelopment Authority has responsibility for the City’s redevelopment efforts, primarily within Tax Incremental District #5. TID #5 is comprised of Main Street, Union Street, and parts of East Church and Maple Streets. RDA board members are Betsy Ahner, Tom Calley, John Decker, Chris Eager, Barb Jacobson, Roger Roth and Anthony Wyse.