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Glendale CDA adopts resolution recommending creation of Tax Incremental District No. 9 for 2510 W. Good Hope Road
Summary
After a developer presentation and a consultant review, the Glendale Community Development Authority adopted a resolution recommending the Common Council create Tax Incremental District No. 9 to support remediation and redevelopment of the 2510 West Good Hope Road site.
The Glendale Community Development Authority voted March 3 to adopt a resolution recommending that the Common Council establish Tax Incremental District (TID) No. 9 at 2510 West Good Hope Road to help fund remediation and redevelopment of the former nursery site.
Developer Newland Enterprises and city consultant Ehlers presented the project plan at a public hearing before the CDA. Joey Wisniewski, senior development coordinator for Newland Enterprises, described the proposed Arden development — 79 mixed rental and townhouse units — and said "the ARDN would not be developed but for the use of tax increment financing," citing roughly $7,880,000 in estimated remediation costs that Newland contends are necessary to make the site buildable.
Todd (Ehlers consultant) summarized the financial analysis and the recommended TIF structure. Ehlers modeled a 27-year district with a 95% incremental split to the developer on a pay-as-you-go basis. Todd said the TIF assistance raises the project's returns into a range that makes the development feasible and stated, "Without TIF, the project would not be able to proceed." Ehlers’ cash-flow exhibits show an estimated completed project value of about $44,300,000 and project costs shown in the plan totaling $25,600,000, of which approximately $24,500,000 is labeled as development incentives to be distributed over the life of the district.
During the public hearing resident Robert Cromwell asked why the CDA proposed a blight TID rather than an environmental remediation TID and questioned whether the city borrowing to provide the upfront financing would be cheaper than the developer-based structure. Ehlers and staff replied that an environmental TID confers no material additional authority in this case, is seldom used, and that the city policy established in 2018 prevents the city from borrowing for private TIF districts. Staff also said the development agreement will include maximum payment amounts and clawback provisions in the event of refinancing.
The CDA adopted the resolution recommending formation of TID No. 9 and its project plan; the resolution will go to the Common Council on March 10 and back to the joint review board on March 24 for final creation authority. CDA members approved the resolution by voice vote with no recorded opposition.
