Fiscal Note
The proposed resolution authorizes the execution of a development agreement with Starkweather, LLC to assist in the development and sale of 13 shovel-ready lots at the former Voit Farm property. The agreement between Starkweather, LLC and the City establishes Starkweather’s responsibilities in construction and delivery of saleable housing lots as well as the City’s level of TIF financial assistance to said housing developers. The purchase of the property and the costs of installing infrastructure on the property will be the responsibility of the Starkweather, LLC (approximately $18.8 million). The agreement further establishes a sales price and infrastructure cost framework to be used by both parties to determine whether such housing developers require TIF assistance, such that, but for TIF assistance, the project(s) would not occur.
The Common Council will receive an authorizing resolution for the creation of a proposed TID 55 (Voit Farm) Project Plan and Boundary later in 2025. TID 55 would qualify under TIF Law as a mixed-use TID, which allows a maximum of 20 years to collect tax increments to pay for project costs. The Project Plan will outline the eligible TIF project costs that may be paid with tax increments, including approximately $3,887,000 of TIF loan assistance for development projects and approximately $4,165,000 of City land banking for Lots 6, 9, 10 and 13 within the Starkweather, LLC project. Additional resolutions will be proposed at a future date for any TIF development loans and/or for the City’s purchase of the aforementioned lots. If additional budget authority is required for those proposed resolutions, it will be requested at that time or requested in future Capital Budgets.
The City providing any TIF assistance is contingent upon the Council adoption of a resolution authorizing the creation of a TID 55 (Voit Farm) Project Plan and Boundary and approval of the TID creation by the TIF Joint Review Board. Future amendments of the...
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