CRA approves rebate of city tax increment for Gaines Street development after debate over student housing

The Community Redevelopment Agency voted to approve a city tax-increment reimbursement for a proposed 187-unit housing development at 730 West Gaines Street. The developer requested 100% of the city portion of the increased ad-valorem tax revenue for about six years (through the CRA’s remaining life) to offset extraordinary site costs; board members approved the request by a 4–1 vote.

The applicant told the agency the project requires demolition, deep soil remediation and two levels of subterranean parking because about half the parcel is encumbered by easements and contamination; the applicant said construction costs are about $253 per square foot and estimated the city portion of incremental taxes at roughly $238,000 per year. “The city will collect exactly what it’s collecting today, and the increase based on the project's completion will be reimbursed annually just for the city's portion,” attorney Aaron Tilton said.

Why it matters: The CRA will forgo…