Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Waverly council approves amended TIF rebate for Palace Theater redevelopment
Summary
The City Council unanimously approved a second amendment to the development agreement with Movie Guys LLC that extends the project completion deadline, reduces the total tax-increment financing (TIF) rebate pool and lowers the annual rebate cap.
The City Council of Waverly on Feb. 17 approved Resolution 25-13, authorizing a second amendment to the development agreement with Movie Guys LLC for redevelopment of the Palace Theater building.
Connie Tolan, planning and development specialist, told the council the amendment extends the minimum improvement completion date to Sept. 1, 2025; reduces the maximum cumulative TIF rebate from $300,000 to $263,373.50 (a $36,626.50 reduction attributed to river wall repairs); and lowers the maximum annual TIF rebate from $20,000 to $2,500 per year for a maximum of 13 years to align with the urban renewal area sunset date.
Tolan said the rebates apply only to the commercial portion of the project and only to increases above the existing tax base: "The original taxes are still there, we still receive that, it's only above and beyond that tax base that would be rebated if they do generate it." She explained the timing change was requested by the developer so the business could open when access improves after nearby bridge construction blocks the current entrance.
Council members who spoke expressed support for allowing the developer more time; one councilmember described the planned theater interior as "really nice" and said it should be a draw for downtown. The resolution was moved, seconded and approved by roll call vote; the motion passed unanimously.
Why it matters: the amendment preserves financial incentives for downtown redevelopment while reducing the city's maximum exposure to reflect construction costs attributed to river-wall work and the revised schedule.
Votes and next steps: Resolution 25-13 passed unanimously by roll call. The developer remains responsible for generating incremental tax revenues before any rebate is paid, and the city will execute the amended agreement as authorized by the council.
