Council approves Water Street incentives and up to $7.58 million in industrial bonds for Water Street Lofts

The Liberty City Council unanimously approved creation of a Water Street Community Improvement District and authorized a taxable industrial development revenue bond package not to exceed $7,580,000 to support the Water Street Lofts project.

City staff told the council the CID would seek “up to 1% additional sales tax for just the new development,” limited to the new construction that includes 16 lofts, a parking garage, a proposed restaurant and retail on the square. City staff said the CID sales tax would be charged only on the new development and would be in addition to the existing 1% downtown square sales tax.

The council also approved a Chapter 100 (industrial development) incentive structure for the project. According to the presentation, the package includes a 25-year abatement schedule tied to a Chapter 100 plan with the first 15 years at 100% and years 16–25 at 50% (as stated to the council by city staff). City staff said the project also requires a sales-tax exemption on construction materials that made Chapter 100 the preferred tool rather than the Chapter 353 (15-year tax abatement) route.

On the bond authorization, city staff stated the bonds are taxable industrial development revenue bonds and that the city would not be liable if the developer failed to pay: “the city is not backing the bonds, so there is no risk to the city,” the presenter said. The council was told the developer would be responsible for backing the bonds and seeking bond purchasers if necessary.

Council members and the mayor framed the project as central to downtown revitalization: speakers referenced the city’s downtown master plan, Historic District Review Commission (HDRC) requirements that make downtown construction more expensive, and the need for on-site parking. The presentation noted the project had been revised to meet city requests and HDRC standards and would add a parking garage intended to reduce parking pressures in the square.

The council voted unanimously to waive rules and consider the CID ordinance and then approved it on first reading. The bond ordinance likewise was approved unanimously after a roll-call vote.

Votes at a glance - Ordinance establishing the Water Street Community Improvement District (CID): motion to approve passed unanimously after public hearing and waiver of rules. (No public speakers.) - Ordinance approving a Chapter 100 plan and authorizing taxable industrial development revenue bonds up to $7,580,000 for the Water Street Lofts project: passed unanimously by roll call. The council recorded the ordinance as approved by the mayor.

Why it matters: The incentives package and bond authorization are intended to make the Water Street Lofts development financially feasible by providing tax exemptions and a bond financing tool; city staff and council framed the project as a catalyst for downtown revitalization, additional housing and parking.

What the council did not do: The city did not assume liability for the bonds, and council members repeatedly stated the bonds are structured so the city would not back them if the developer defaulted. Council action approved the CID and bond package as presented; no amendment to the incentive terms was recorded during the meeting.

What’s next: The presentation and approvals clear a formal step in the incentives process; further administrative and developer actions (bond issuance, construction approvals, HDRC compliance) were discussed as part of the project timeline but were not finalized in the meeting.