But in a departure from the anti-borrowing rhetoric that has dominated the political debate in
It's not necessarily hypocritical -- councilors say this deal has special appeal, because of built-in protections for residential taxpayers. And the way it's structured may serve as a model of sorts for future redevelopment deals in
The plans call for 422 luxury apartments, a retirement community, and townhomes for sale and rent. There also will be retail space and a spot for a future hotel. In addition to a parking garage, the loan would pay for an extension of
Here's how a typical TIF deal works: The property taxes are frozen at their pre-development level, ensuring developers continue to contribute to the city's general fund. As the property value increases, those new taxes that the developer would have owed to the city are set aside and used to pay off the construction loans.
But under the Edward Rose deal, the developer will buy the bonds and be forced to cover any tax shortfalls. And, the developer will only keep 75 percent of the new taxes. The rest will go to the CRC, which will help the commission pay off the
"The council has been saying that we would like to have a 75 or 80 percent split," said Snyder, who chairs the city
Redevelopment commission director
"Is there a model? No," Meyer said. "But, we are constantly trying to structure a joint partnership with our private partners to help facilitate development and increase our opportunities to pay down debt.
"That project is really a win-win," she added. "It's a win for the city; it's a win for the developer."
The Edward Rose request comes as councilors have been steadily ramping up pressure on the
The report showed a mixed outlook, with plenty for either side to use as ammunition in the debates to come.
On the one hand, TIF revenues alone are projected to fall
On the other hand, a TIF reserve fund is expected to grow to
Still, council members remain concerned about the future. And while projects like the Edward Rose deal at least don't add to the city's debt exposure, Council President
"Am I happy about it? No I'm not happy about it," he said, after acknowledging that he expects it to pass when it emerges from committee. "But the project's decent. They continue to make the argument, 'Well, without our project you wouldn't have the increase in (property) value.'
"The other side of that coin is, if we never gave out TIFs, the developers would have to spend the money anyway," he added. "And they would. They would spend the money."
Snyder isn't so sure. While most of
"This particular location has had years and years and years of infrastructure neglect," she said.
Seidensticker's take? Blight is in the eye of the beholder.
"You go find the same comparable area in the city of
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