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Commission authorizes staff to draft Tax Allocation District plan for Willow Road site as potential pickleball/hockey sports complex
Summary
The commission directed city staff to draft a Tax Allocation District redevelopment plan for a Willow Road parcel proposed as a multi-sport complex (pickleball and related facilities) so the developer can pursue financing tied to future incremental tax revenue.
The commission voted to authorize the administrator, finance and legal staff to prepare a Tax Allocation District (TAD) and redevelopment plan for a Willow Road parcel that a private developer proposes to convert into a multi-sport complex with indoor/outdoor courts and ancillary development.
What was authorized
Attorney Plunkett explained the stepwise approach: 1) prepare a redevelopment plan and proposed district boundaries; 2) hold a public hearing and adopt the plan if the commission approves it; 3) negotiate a development agreement that would tie reimbursements from increment revenues to project deliverables. The commission approved starting the process so the TAD could be in place before the state's December 31 reference date used to set baseline assessed value.
Developer proposal and conditions
Developer Troy Akers (presenter) described a concept estimated in the $80–$90 million range for site grading, indoor/outdoor courts and related amenities. City staff told the commission the developer identified approximately $8–$10 million in development-related costs (grading, infrastructure) that could be the target of a TAD reimbursement equal to roughly 10% of the project cost in a common local model. Plunkett and staff emphasized that any reimbursement would be limited to tax increments actually generated by the project and that the school board would need to agree to participate (a school-board waiver of the increment can materially affect the project's feasibility).
Why it matters: If the project proceeds and the TAD is used to finance site preparation and infrastructure, a period of diverted increment revenues would be required before the full tax revenue stream returns to the general fund. The commission's vote to start the TAD process does not obligate the city to specific payments; a subsequent development agreement would be presented to the commission for approval.
Next steps
Staff will draft the redevelopment plan and return for public hearing and possible adoption. If a plan is approved, staff and the developer would negotiate a development agreement that specifies what work qualifies for reimbursement, timing and any performance guarantees. Plunkett said design and development milestones would be phased and reimbursements limited to actual collected increment taxes.
