Story County sets public hearing on urban renewal amendment to enable TIF support for housing

The Story County Board of Supervisors voted Tuesday to set a public hearing on Nov. 18 on an amendment to the Story County urban renewal plan that would authorize a new urban renewal project providing tax-increment financing support to the Story County Housing Trust.

The board's action sets the November 18 public hearing and schedules a consultation meeting for Nov. 4 to share the draft amendment and likely TIF agreement. The resolution to set the hearing (Resolution 26-28) passed on a voice vote: Basil, aye; Merkin, aye; Heddens, aye.

Why it matters: the amendment would create a TIF mechanism the county could use to help fund qualifying housing projects for low- and moderate-income families. Board members and county officials emphasized that certifying TIF debt is a separate, later step with important timing and fiscal consequences, and several supervisors warned they needed more detail before certifying any debt by the Dec. 1 deadline discussed in the meeting.

Board debate and concerns Supervisor Merkin said she supported moving the housing effort forward but voiced several concerns about the speed of the process. "I have some concerns. I really think we need to be moving forward on affordable housing, which this gives us an opportunity to do. I have some concerns I just want to state for the record," Merkin said, citing what she described as a rushed timeline and incomplete answers about what TIF dollars can and cannot pay for.

Merkin requested clarity about whether attorney fees, possible administrative fees charged by the Story County Housing Trust, and other expenses would be allowable TIF expenditures or instead would have to be paid from county general funds. She asked for a clear list of project types that would be eligible or ineligible under the amendment before the board certifies any debt.

County staff and the auditor answered procedural questions during the discussion. Staff said the amendment had been prepared and, if the board adopted the resolution, the amendment would be placed in the Clerk's office and the Offices of Planning and Development. The consultation meeting to discuss the draft amendment and likely TIF agreement is scheduled for Nov. 4; the public hearing is scheduled for Nov. 18 at 10 a.m.

The county auditor cautioned about broader state-level uncertainty around property-tax and school-backfill rules. The auditor warned that changes at the state level could affect TIF revenue streams and noted that certified TIF debt remains a legal obligation even if state formulas change. "TIF debt is debt. If the funding formula changes, the debt doesn't go away," the auditor said.

Procedure and next steps The board did not certify any TIF debt at Tuesday's meeting. County staff said mailings and publication notices tied to the amendment and the Nov. 4 consultation would go out if the resolution was adopted. Officials told supervisors they expected to provide additional answers to the outstanding questions before any debt certification deadline.

The board's passage of Resolution 26-28 only schedules the public hearing on the urban renewal amendment; any later step to certify debt, adopt a TIF agreement, or commit County funds would require separate board action.

Ending note The county will hold a public consultation on Nov. 4 to review the draft amendment and likely TIF agreement. The board's formal public hearing is scheduled for Nov. 18 at 10 a.m.; staff said publication and mailing of notices would follow the board's adoption of the resolution.