Fiscal Note
The proposed resolution amends the Economic Development Division's (EDD) 2026 Adopted Capital Budget to add $2.0 million in TID-supported GO Borrowing. It further authorizes a $2.0 million loan to Odana Apartments, LLC, or its assigns ("Developer"). A new capital project would be created in Munis for TID 57.
The Developer proposes the construction of approximately 227 affordable apartment units and approximately 132 parking stalls at a total cost of $78,193,000 ("Project"). The TIF Loan would be repaid through incremental taxes generated by the Project. The amount of the loan represents 55% of the present value of all incremental taxes anticipated from the Project over the TID’s 20-year life. While it is anticipated that the incremental taxes generated by the Project will be sufficient to repay the loan within approximately 9 years, the Developer is required to guarantee a minimum payment if sufficient future tax increment is not available. The increment guaranty is secured by a subordinated mortgage on the property. The TIF Loan also requires that Developer be prohibited from selling or transferring the Property prior to repayment of the TIF Loan. If Developer sells or transfers the Property to a tax-exempt entity, Buyer shall pay an annual payment in lieu of taxes (PILOT) in the amount of the property tax paid as of the date of sale, frozen, until 2050. See the attached TIF Memo from TIF staff for additional information about TID condition and compliance with the City's TIF Goals, Objectives, and Process policy and the TIF Underwriting Policy.
The City providing TIF assistance for the Project is contingent upon the Council's adoption of a resolution authorizing the creation of a TID 57 (Medical Circle) Project Plan and Boundary and approval of the TID creation by the TIF Joint Review Board.
Title
SUBSTITUTE Amending the 2026 EDD Capital Budget (TID 57) and authorizing the Mayor and City Clerk to execute a development agreement to fund a $2,000,00...
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