Committee directs staff to advance Hunt Midwest redevelopment at 8036 Metcalf with 95% incremental TIF, 15% IRR cap and $35M EDRVs resolution of intent

The committee directed staff to prepare a resolution approving a redevelopment agreement with Hunt Midwest Real Estate Development Inc. for the 8036 Metcalf project and to take subsequent steps on TIF, a CID petition and an EDRB resolution of intent.

Staff said negotiations settled several disputed terms: the allowable increment for the developer was reduced from the developer’s 100% request to 95% (the city’s policy baseline had been 90%); the developer’s proposed internal rate of return (IRR) request of 16% was negotiated to a 15% cap; design fees and land acquisition costs were accepted within the negotiated framework; and the developer will provide a community benefit annual donation of $5,000 to Friends of JCDS for the term of the agreement (about 22 years), according to staff.

Staff introduced Janelle Bowers, CEO of Friends of JCDS, who confirmed the donation is meaningful to support an unrestricted fund for a building they are planning downtown to serve low and very low income residents.

Committee members emphasized public benefits, including underground parking and increased downtown activity. The motion directs staff, upon passage of the redevelopment resolution, to (1) work with the developer on a TIF project plan for further committee review, (2) finalize the CID petition and schedule a public hearing, and (3) prepare a resolution of intent for issuance of EDRVs in an amount not to exceed $35,000,000. The committee voted 6-0 to send the recommendation to the City Council.