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La Porte approves Beechwood Lakes economic development agreement for 122-unit mixed housing project
Summary
The La Porte Common Council voted Aug. 18 to approve an economic development agreement with Beechwood Lakes LLC for the Residence at Beechwood, a planned mixed community of about 122 units.
The La Porte Common Council voted Aug. 18 to approve an economic development agreement with Beechwood Lakes LLC for a project described in the agreement as the Residence at Beechwood, a mixed single-family and townhouse development expected to total approximately 122 units.
Bert Cook, executive director of the La Porte Economic Advancement Partnership, told the council the development is anticipated to include roughly 75 single-family homes and 47 townhomes, with about $30,000,000 in expected capital investment. The developer would pay $1,865,000 for the property; the developer is responsible for constructing the required roads, water, wastewater and stormwater infrastructure, Cook said.
"We will allow them to receive payback on that, based on the funds that they're putting into the development, the purchase price, as well as a developer-backed bond," Cook said, explaining the mechanism for reimbursing infrastructure costs. He added that the reimbursement would be financed through taxes generated within the development and that the city would not assume the developer's debt: "We are not taking on any risk or any debt associated."
Cook told council members the city expects two tax-increment financing (TIF) districts tied to the project: a residential TIF for the single-family portion and a traditional commercial TIF covering the townhome portion. He estimated infrastructure costs in the range of $3,000,000 to $5,500,000 in current dollars and said the developer is required to begin work within a year.
Council members discussed the property's history, the public solicitation process and the need for an adequate density to justify infrastructure expenses. City staff emphasized the developer bears the financing and construction risk and that the agreement will next be presented to the Board of Public Works and the Redevelopment Commission as part of the procedural review.
Council approved the reading and then voted to pass the economic development agreement. City officials said the two existing homes on the site will be retained and readied as part of the project.
The agreement's final implementation depends on additional proceedings by the Redevelopment Commission and satisfaction of the agreement's conditions.
