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Council authorizes release of developer guarantees for Haymarket Landing after 10 years
Summary
The council voted unanimously to release $4 million in developer guarantees tied to the Haymarket Landing (Mixed Use Building) after the project met its tax increment benchmarks and generated more than the guaranteed amount.
The Eau Claire City Council unanimously voted Tuesday to authorize release of developer guarantees tied to the Haymarket Landing portion of the Confluence project after the city determined that the private partners had met their minimum tax-value guarantees.
City Attorney Nick told the council the confluence project had been enabled by two development agreements and private developer guarantees that ensured a minimum recovery of roughly $4 million in local property-tax increment to offset public investments. Nick said the property has produced in excess of $4.5 million in taxes and the Haymarket Landing building is now valued at more than $34 million. "I am very pleased to be presenting what is really a successful 10-year update on our very substantial confluence project," Nick said.
Council members asked procedural and operational questions about what "releasing the lien" means and about the remaining life of the related tax increment districts. Nick explained that releasing the lien removes the city's potential legal right to recover against the property for the guarantee and that the TID increment remains on the tax rolls until its planned close in the 2030s. One council member asked whether the $4.5 million collected was increment above what would normally have been collected; staff described how TIF increment works and that the increment benefits the TID during its life and returns to all taxing jurisdictions upon TID closure.
The council moved, discussed briefly and approved the resolution authorizing recording of the release. The roll call vote was unanimous.
Votes at a glance: The resolution authorizing release of the private developer guarantees was approved unanimously.
