Council debate focuses on Martin Tower site: LERTA, lost tax revenue and feasibility concerns

Council members discussed the future of the Martin Tower site and whether targeted tax incentives or other agreements could prompt development of rental housing.

Councilman Callahan summarized his view that the owners have no near-term plan to submit zoning changes and said the project would likely remain inactive until interest rates and construction costs improve. “There is absolutely no plan…there is nothing, that they will submit because the financials don't make sense right now,” he said.

Callahan argued that if the site were developed the city could gain substantial revenues (rec fees, EIT, property taxes) and that delays cost the city millions in foregone revenue. The mayor and staff noted the property is large and previously underwent multiple concept changes after the 2008–10 housing market shock; they said the administration is researching a model for one‑off LERTA (Local Economic Revitalization Tax Assistance) incentives that could require long-term affordable units or a master-lease for a portion of units.

“Rather than just taking money out as far as like a payment in lieu of, is there a way…could you sign a master lease with somebody like New Bethany or somebody for a certain percentage of units?” the mayor asked, describing an option to secure mixed‑income outcomes for a LERTA request. Staff emphasized they are still researching the model and that a one‑off LERTA raises fairness questions for other property owners.

Council members agreed the site has potential to add hundreds of units if a financially feasible plan emerges, but they did not adopt an incentive or binding requirement at the meeting. Staff said the site has been designated in the past as blighted for redevelopment purposes and that any LERTA would be subject to negotiation with other taxing entities.