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City staff to propose $2.5 million in Capitol Hill TIF disbursement to developer; plan would pay over five years
Summary
Staff proposed using up to about $2.5 million in Capitol Hill tax-increment funds for the Anderson Construction redevelopment at the Capitol Hill Mall site, to be paid in five equal disbursements through November 2029; staff said the district lacks an adopted work plan and the TIF board is still being recruited.
City staff told the commission on Aug. 27 they will present a proposal in September to distribute up to roughly $2.5 million in Capitol Hill tax-increment financing (TIF) funds to D and M Development LLC (Anderson Construction) for redevelopment at the Capitol Hill Mall site.
Staff said the total project cost supplied by the developer was about $3.9 million and that roughly $2.5 million of that appears to be eligible for TIF reimbursement under staff review. Because the Capitol Hill TIF fund cannot support a single, full disbursement at this time and to preserve fund capacity for other projects, staff proposed breaking the disbursement into five equal payments with the final payment by November 2029.
Staff acknowledged the district does not yet have an adopted work plan and that the TIF board must be appointed; they said Senate Bill 3 (from the recent legislative session) effectively requires a formal TIF board and that the city is recruiting members, including statutory appointees from the county and school district. The presentation included a cash-flow chart that showed expected TIF increment receipts in fiscal 2026 of about $643,000; staff said they are confident, though not certain, the fund can support the proposed five-year schedule.
Staff said they would return with a formal proposal and resolution for commission action, along with any necessary development-agreement terms and details about eligibility and disbursement timing.
