Committee of the Whole refers downtown sale and 30‑year TIF to full council

Lakewood’s Committee of the Whole on an informational meeting referred two ordinances to full City Council that advance the planned redevelopment of the former hospital site, including a proposed transfer of title to Bell Ave Partners LLC and creation of a 30‑year tax increment financing (TIF) fund to subsidize construction of a public parking garage, plaza and parks.

The referral came after a presentation by Planning Director Byington outlining the development plan previously approved by council that calls for about 25,000 square feet of new commercial or retail space, renovation of the Curtis Block, 298 apartments, a 567‑space parking garage, a public plaza and two public park spaces. Byington said the sale price for the city parcel is $1,500,000, payable 30 days after issuance of the final certificate of occupancy for Building A, with repayment forgiven if the city determines the developer has completed the parking facility, community space and public parks and recorded easements or declarations providing public access.

Why it matters: The ordinances under review would allow a developer to use a long‑term TIF vehicle to underwrite public assets tied to the project while the residential portion would be handled as a non‑school TIF subject to a previously executed school compensation agreement. Council members raised questions about timeline, affordability and the scope of public benefits before voting to refer the ordinances to full council.

Key details and council discussion

Planning Director Byington recapped earlier approvals, including December ordinances that adopted the planned development and authorized a development agreement. Those approvals included a requirement that 20% of apartments be affordable, public access be retained for plaza and parks, commercially reasonable efforts for minority and women business enterprise participation, and specified TIF structures (85% for commercial, 100% for the parking garage and a non‑school TIF for residential).

Byington said the school compensation agreement required by the development agreement was executed December 16. He summarized the project’s estimated financial figures as presented: “estimated PILOTs projected at this time are just under 60,000,000, the school share being just over 22,000,000 and the project share being approximately 37,500,000.” The presentation described a service payment agreement (payments in lieu of taxes) that directs the county to collect payments equal to what taxes would have been without the TIF, remit those to the city, and have the city deposit them in the TIF fund for payments as agreed.

Developer timeline and financing

Developer representatives said they are finalizing lender documents and aiming to reach closing and begin construction within roughly 45 days. Brent Sobchak of the development team said, “I think that TIF is absolutely necessary to make the project work,” and said the developer will invest about $30,000,000 of equity in the project. Sobchak estimated a roughly 26‑month construction timeline from the start and described phasing that will build from the street frontage toward the rear, with the garage and Building 1 proceeding concurrently. He said the first 12–16 months will produce leasable ground‑floor retail and portions of the Curtis Block that could be occupied before the full project is complete.

Affordability and public benefits

Council members pressed for details on the affordability requirement. The development team said the project will use Lakewood CRA requirements, which the presenter described as 20% affordable units split as “10% at 80% AMI and 10% at 120% AMI.” The presentation did not specify exact rents for affordable or market units; the developer said those figures would be provided later. The sale/forgiveness terms tie the city’s $1.5 million receipt to substantial completion and city acceptance of the public parking facility, community space and parks; Byington confirmed forgiveness applies to both principal and interest if the city accepts the public assets as complete.

Formal action and next steps

Committee members voted to refer both ordinances to full council for final action. President Keppel moved to refer Ordinance 24‑20‑25 (transfer of title/sale) favorably to full council; the motion passed with Councilmember Epstein recorded as an abstention. The committee then voted to refer Ordinance 25‑20‑25 (TIF and service payment agreement) favorably to full council; Vice President Baker had earlier stated she would abstain from discussion and voting on the TIF and was recorded as an abstention on that referral. No final vote adopting either ordinance occurred—the referrals send the measures to the next full council meeting for final consideration.

The developer said lenders and counsel are reviewing documents and the target for closing and “putting a shovel in the ground” is roughly mid‑September to October (approximately 45 days from the presentation). Council members requested regular updates from staff during the construction period so the public will be informed as visible work begins.

The committee adjourned after referring both ordinances to full council.