Verona Common Council rejects TIF amendment for Sugar Creek multifamily project

In a recent Common Council meeting held on July 14, 2025, the City of Verona discussed a significant proposal regarding the Sugar Creek Commons development, which has been under scrutiny since its inception. The original agreement, executed in March 2021, included a Tax Increment Financing (TIF) arrangement that allowed for a potential payment of $3.2 million to support a mixed-use project, which was to include a hotel and conference center. However, as of now, the hotel project has not materialized, leading to a proposal from the developer, Forward Development Group, to modify the agreement to allow for a multifamily development instead.

City staff clarified that the proposed multifamily project does not meet the original TIF agreement's requirements, which were contingent upon the completion of both the hotel and public improvements by specified deadlines—deadlines that have since been missed. The city has never provided TIF funding for market-rate apartments, having previously reserved such financial assistance for affordable housing projects.

During the meeting, council members expressed strong opposition to amending the TIF agreement. Several council members articulated concerns about the implications of providing public funds for luxury housing, particularly in light of the loss of naturally occurring affordable housing in the area. They emphasized the importance of upholding contractual obligations and maintaining the integrity of public funding processes.

The consensus among council members was clear: they are not inclined to amend the agreement to facilitate TIF payments for the proposed multifamily development. This decision reflects a broader commitment to ensuring that public resources are allocated in a manner that aligns with community needs and values.

As the council moves forward, the developer will need to reassess their options without the support of TIF funding, potentially reshaping the future of the Sugar Creek Commons project. The discussions from this meeting highlight the ongoing challenges cities face in balancing development interests with community welfare and fiscal responsibility.