Council advances 75 Scott Street redevelopment: first readings set, staff outlines PILOT terms

Monroe City Council placed on first reading two ordinances related to the proposed redevelopment of the former fire station site at 75 Scott Street, which would be developed as a 46-unit rental project financed in part through the Low-Income Housing Tax Credit (LIHTC) program.

Director Mark Cochran reviewed the proposal from developer Woda Cooper: 46 apartments (24 one-bedroom and 22 two-bedroom units) to be supported by the LIHTC program. Under the proposed payment-in-lieu-of-taxes (PILOT) structure, the developer initially proposed a 4% payment based on net rental income, and the city negotiated an additional 2% municipal services fee the city would retain in full. Staff presented example revenue ranges and explained that the net operating income estimates and resulting payments are illustrative and dependent on occupancy and rents.

Cochran said the proposed PILOT term in the draft ordinance is 20 years with council’s option to extend another 20 years. Staff calculated a potential city share that, under staff assumptions and at 100% occupancy, would be materially lower than standard property tax receipts in the early years, in part because the property has not recently been on the tax rolls.

Council members asked detailed questions about the math, the municipal services fee and the PILOT percentage. Councilman Felder pressed staff about whether the additional 2% is calculated as a percentage of the developer’s total rental income or of the portion already distributed under the 4% formula; staff clarified the administration’s approach and the calculation assumptions.

Council then approved first readings of both ordinances and set a special council meeting for the second reading and public hearing on Sept. 29, 2025. No final tax agreement or pilot contract was adopted at this meeting; staff said final calculations and the formal PILOT agreement will be returned for council consideration at the next hearing.