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Pittsburg commission approves amendment to Villas at Creekside housing incentive to reflect higher construction costs
Summary
The commission amended the Villas at Creekside Residential Housing Incentive District (RHID) Exhibit C to raise eligible reimbursement amounts — up to $4.8 million paid over the existing 25-year period — citing higher actual infrastructure costs. The project delivered 29 villas (58 units), 53 of which are leased.
The Pitt sburg City Commission on Wednesday approved an amendment to the Villas at Creekside Residential Housing Incentive District (RHID) Exhibit C to increase the eligible reimbursement amounts for infrastructure costs, city staff said.
City staff told commissioners the amendment adjusts the dollar amounts in Exhibit C to reflect actual costs the developer incurred during construction and does not extend the 25-year term of the RHID. "We're just asking this evening to be able to amend that eligible cost list and we are not changing the time frame in which we would be reimbursing those costs," a city staff member said.
The amendment responds to higher-than-expected expenses stemming from inflation, supply chain disruptions and pandemic-era cost increases, staff said. The commission-approved change raises the ceiling of eligible reimbursements to $4,800,000, which will be paid to the developer over the existing 25-year RHID period and is not a single lump sum.
Staff described how the tax-increment portion of the RHID works: the property tax base remains the assessed value of the unimproved land and continues to flow to taxing entities; the incremental increase from the new improvements is the portion rebated to the developer under the RHID agreement. When a commissioner asked whether the base tax had been calculated on unimproved land, the city staff confirmed that the base tax remains the same and that only the incremental tax from improvements is rebated.
City staff said the Villas project includes 29 villas, for a total of 58 housing units; 53 of those units have signed leases and are occupied. Philip and Ron, identified in the meeting as project representatives, were present to answer commissioner questions.
The commission moved and seconded approval; members voted by voice and the motion passed with all voting "aye." The amendment will change the list of eligible reimbursable line items in Exhibit C to match the green-column amounts presented to the commission, up to the $4.8 million ceiling.
The change is intended to align the RHID's eligible-cost schedule with the actual expenditures of the completed phase. No change was made to the RHIDs duration or repayment schedule.
Votes at a glance: Motion to amend Exhibit C for the Villas at Creekside RHID to increase eligible reimbursement amounts (up to $4,800,000 over the existing 25-year period) Approved (voice vote, all "aye").
