The City has reached an agreement with the few remaining tenants in 6th St. Marketplace to close the building after offering them a generous debt forgiveness package.

You can read the April 22 letter from CAO Sheila Hill-Christian to City Council announcing this offer. After hearing no objections in this proposal, the final preparations are now underway to close the building in mid-May.

All tenants were provided with two options:

A)   The City would pay for actual moving costs plus a re-establishment cost capped at $25,000.

B)   A fixed moving cost known as an “in Lieu of Payment Moving Cost.”

Furthermore, the City is subtracting 50% of each tenant’s back rent, which in some cases exceeds $50,000, from the relocation payment it will provide each vendor.

An example of one settlement with a tenant that owes $26,000 in back rent:

The City will pay their moving costs of $7,000

The City will offer a re-establishment payment of $25,000

Total payment of $32,000.

The City is reducing the back rent owed by 50%($13,433).

Result:

The tenant will receive $18,566 to get started elsewhere in a new location.

You can view the payments to each tenant here (names removed for privacy).

The City is working with all tenants in a fair and equitable manner to allow them to move to another location without worries about large bills, and the City can move ahead with planning and redeveloping the 6th St. building and Blues Armory. In only two of eight cases will exiting tenants owe the City payment, and that is due to the large amount of back taxes owed the City.

We think it is a win-win for everyone involved.