Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Development topic
No spam. Unsubscribe anytime.
Council adopts TIF No. 11 project plan, authorizes developer agreements for Stencil Group multifamily project
Summary
The council approved the TIF No. 11 project plan and related developer agreements to support construction of an estimated 220–230 rental units in a phased multifamily project on the south side of Roosevelt Street; staff said the first phase (about 118 units) would begin this year.
The Vermillion City Council on May 5 voted to adopt the project plan for Tax Increment Financing District No. 11 and authorized related developer agreements with Stencil Group (NJS Development) to support a multi-phase apartment development on the south side of Roosevelt Street.
The council heard from city staff that the base assessed value for the identified block is $23,953, that the developer is requesting $6,000,000 of TIF-eligible assistance for site and infrastructure work, and that the total project is forecast at about $23,000,000 with roughly $17,000,000 of non-eligible costs as described in the project plan. Staff and the Planning and Zoning Commission recommended approval.
Nut graf: Adoption of the project plan and execution of the developer agreements clears key legal and financing steps for the project: tax increment revenues generated by increased assessed value on the property will be used to reimburse eligible infrastructure work, and the developer will either complete required public improvements up front or enter a binding agreement guaranteeing their completion.
What the council approved and why it matters - TIF District No. 11 project plan (adopted): staff described infrastructure work including extension/completion of Roosevelt Street, curb and gutter, drainage and water and sanitary sewer connections; the first phase (east phase) would begin in 2025 and include approximately 118 units (mix of studio, 1- and 2-bedroom apartments). The increment would reimburse eligible costs for up to 20 years as set by the plan. - Developer’s agreement with Stencil/NJS Development (authorized for mayor signature): requires the developer to complete frontage infrastructure or enter a binding guarantee, to not remonstrate against assessments, and to provide required insurance, payment and performance bonds and lien waivers before final payment or acceptance. - Agreement permitting a private entity to construct public infrastructure under city oversight (authorized): the city will pay for oversized items as specified and will require documentation, lien waivers, a one-year guarantee period and performance bonds consistent with city standards.
Council discussion and conditions City staff and the developer’s representative (Toby Morris, Colliers) answered council questions about timing and unit counts; Morris estimated the full project would yield between 220 and 230 units depending on final design. Council members asked about assurances that the infrastructure will be accepted by the city; staff and the agreement language require bonds, insurance and lien waivers and provide for city review prior to final acceptance.
Implementation notes Staff recommended authorization of the mayor’s signature on the agreements; subsequent steps include execution of developer-provided bonds and insurance, the developer’s submittal of final construction plans, and coordination with SDHDA loan processes (if awarded) and permitting. The TIF plan anticipates the first phase beginning this year.
Ending: The council’s action enables contracted steps for the multi-phase project to proceed; final construction and reimbursement remain contingent on developer performance, grant/loan approvals and completion of required documentation.
