Committee advances Grama Eagle TIF amendment that clarifies increment capture and developer bonds
Summary
The committee recommended approval of an amended development agreement and ordinance language for the Grama Eagle project to clarify how tax-increment financing (TIF) increment is captured and distributed to developer-purchased conduit bonds and project components.
The Budget Finance Committee advanced an ordinance amendment for the Grama Eagle development that adjusts how tax-increment revenue is captured and distributed among project components and developer-purchased bonds.
Staff said the change codifies an allocation area and clarifies the mechanism by which increment above debt service flows to the developer and how revenues will be split among the apartments, townhomes and golf-course components. The presenter described the bonds as conduit debt: the developer will issue and purchase their own bonds, which are issued as city conduit debt under the developer's purchase arrangement. Staff emphasized that the developer (purchaser of the bonds) assumes the credit risk; if the developer's increment falls short, the city is not liable to make up shortfalls.
Committee members asked about timing and whether the apartment component was ready to proceed; staff said the apartment group appeared ready to close by year-end. Members also asked whether improvements to the golf course and clubhouse remain part of the agreement; staff confirmed those improvements remain in the plan.
A committee member moved for approval; another seconded and members present voted "aye." The ordinance amendment will proceed to the council.
