Title
Introduction and Discussion on the Local Economic Development Act (LEDA) Public Participation Agreement High Level Terms for the 1735 Central Avenue Redevelopment Project (AKA Former CB Fox Building)
Body
The purpose of this item is to introduce the new 1735 Central Avenue Redevelopment Project (aka former CB Fox building) before the Council considers formal introduction and public hearing of a public participation ordinance. No action is requested and the developer representative, Central Investments, will attend to give a project overview and answer questions.
Central Investments is a partnership comprised of local resident Phil Gursky, commercial realtor Jyl De Haven, property owner Matt Miles, and Chicago based Steve Miszkowicz and Josh Silverman.
An initial LEDA application was submitted by Central Investments on December 31, 2025. After several conversations to clarify the project scope and public financial request, a LEDA participation agreement was drafted by legal counsel.
The proposed project renovates the former CB Fox building, located at 1735 Central Avenue, into small retail spaces facing Central Avenue, a commercial kitchen and food court on the lower level, and a 30 room boutique hotel on the upper level with a rooftop bar. The estimated project construction cost is 18 million dollars. It is important to note this project is a market rate development, meaning the public participation does not restrict market lease or room rates once the construction is completed. Additionally, although the project primarily uses electricity and is seeking C-PACE (Commercial Property Assessed Clean Energy) financing to improve the project's energy efficiency, there will be natural gas for the commercial kitchen. The electrical service to the building will be sized to accommodate a conversion of the existing natural gas equipment to be electric in the future.
The requested County fiscal participation from the Economic Development fund is a total of six million dollars. Four million is in the form of a grant and two million as a ten year, zero interest loan to be paid back starting in year four through year ten of the participation agreement. The economic benefit of the redevelopment project is estimated to exceed 4.27 million dollars of gross receipts tax on construction, food/beverage and retail sales, and lodgers tax revenues over ten years of the participation agreement term. Additionally, the project is anticipating to generate 25 new full-time equivalent jobs.
The anticipated Introduction of Public Hearing date is June 30 or July 7, 2026 and the Public Hearing for approval consideration will be on July 28, 2026.
Fiscal and Staff Impact/Planned Item
Approved and executed LEDA PPAs are funded from the Economic Development fund.
Attachments
A - Project Presentation