Council approves Grand Millennium PUD amendment; introduces TIF-backed bonds and parking garage financing

The Westfield Common Council on April 14 adopted an amendment to the Grand Millennium Center Planned Unit Development and approved a related declaratory resolution that creates three tax-increment finance (TIF) allocation areas to support the project.

The action clears the way for city-supported financing the council introduced this evening: an economic development bond ordinance that would permit up to $25 million in developer-backed bonds and a redevelopment authority financing package that would allow up to $40 million in bonds or bond anticipation notes for land acquisition and a municipal parking garage.

Why it matters: Councilors and staff said the package is intended to provide infrastructure and catalytic development in the Grand Park/Grand Millennium area, including replacement parking that must be built before other planned private development can proceed. City officials said the financing is structured so most repayment will rely on TIF revenues tied to the project or to the specific developments and not on the city’s general fund.

Community Development staffer Ryan Collingwood told the council the PUD amendment applies to roughly 17.1 acres generally located on the west side of Westfield Boulevard within the Grand Millennium planned development area and that the amendment includes a new development concept plan, character exhibits and a commitment to allow up to 20 additional housing units. The amendment also incorporates a developer commitment exhibit that binds the development approach to the project’s economic agreement with the city.

Developer David George of CRG Residential said the documents before the council tonight reflect the elevations and site plan previously shown to the planning commission. He said the owner of the first medical office building in the area has expressed interest in continuing development and that negotiations are under way for future purchases of the second building’s parcel.

Public comment and concerns: Nedra Moran, who identified herself as representing a surgery center on Westfield Boulevard, said she was concerned earlier in the agenda that a proposed apartment building and site plan could block the surgery center’s visibility from the road. David George noted he had met with the owner of the nearby medical office building and said the project team is attempting to create regional amenities, including combining detention ponds to form a larger pond and plaza, and adding pathways and exercise stations.

Financing details presented to the council: Brad Bingham of Barnes & Thornburg summarized the draft economic development bond ordinance that was introduced for later adoption. The ordinance would authorize economic development revenue bonds in one or more series to support the Grand Millennium Center project, with a maximum aggregate principal amount of $25,000,000, a maximum term of 25 years and a maximum interest rate of 8 percent. Bingham described those bonds as “developer-backed,” secured by the project’s TIF revenues and not by the city’s general fund.

Separately, the council reviewed an ordinance (introduced this meeting) that would authorize the Westfield Redevelopment Authority to issue bonds and bond anticipation notes and appropriate proceeds for acquisition of land and construction of a municipal parking structure. City Director Janelle Fairman said the first parking garage is planned at roughly 600 spaces and that cost estimates are in the $25 million to $27 million range (roughly $35,000 to $40,000 per space as presented). The ordinance establishes maximum parameters: a combined maximum not to exceed $40,000,000 for the authority’s issuance, a maximum lease term of 30 years and a maximum annual lease rental payment of $3.5 million; those figures provide financing flexibility and will be refined at final sale.

Oscar, identified as a consultant from Boundary Consulting, and other city advisers told the council there is currently sufficient existing TIF coverage in the broader Grand Park/Grand Junction district to support interim payments for the bond anticipation notes if needed. Oscar said coverage and cashflow estimates put projected payments in the neighborhood of $3.9 million per year for the financing as structured, though the city emphasized final sizing and repayment terms will be set at the time of bond sale.

Timing and next steps: Councilors approved the PUD amendment (Ordinance 24-71) by roll call, 7-0. The declaratory resolution that creates three allocation areas within the East Side economic development area and specifically references the CRG project was also adopted, 7-0. The economic development bond ordinance (introducing up to $25 million) and the redevelopment-authority lease-and-bond ordinance (introducing up to $40 million and authorizing bond anticipation notes) were presented for introduction and are scheduled for adoption consideration at a subsequent meeting; official public hearings and final bond approvals will follow. City staff said they anticipate a bond closing in mid-June if approvals proceed on schedule. Janelle Fairman told the council the city is aiming for a phase 1 groundbreaking by the end of the calendar year and projected other developments to follow within roughly two years, contingent on continuing negotiations and private commitments.

What the council decided: The PUD amendment and the declaratory resolution were adopted this evening. The related bond ordinances were introduced for consideration at a later meeting; the council did not adopt the financing ordinances tonight but opened the required public hearings where noted.

Council action (selected): Ordinance 24-71 (Grand Millennium Center PUD amendment): approved 7-0. Resolution creating TIF allocation areas for Grand Millennium Center: approved 7-0. Draft bond ordinances for developer bonds and redevelopment authority bonds: introduced; adoption and final bond approval expected at future meetings.

The council packet and staff presentations include the developer commitment exhibit and a map of the new allocation areas; those exhibits will be part of the record when the council considers final bond ordinances at the next meeting.