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Council reviews new Broad & Main development agreement and proposed $3.5M grant and TIF rebate
Summary
Staff described a revised development agreement for the Broad & Main property transferring to DCI Properties on Jan. 16, 2025. The new agreement raises the grant to $3,500,000 and proposes an 80% tax-increment rebate over 20 years with project milestones; staff will present the developer and project graphics at the Dec. 17 council meeting.
Staff told the Council the city and DCI Properties have negotiated a new development agreement for the Broad & Main property (between 6th and 7th avenues) after the previous agreement with Uptown Development was released. The developer is expected to take ownership Jan. 16, 2025, as part of a settlement.
Leanne said the new agreement increases the grant to $3,500,000 (up from $3,350,000 in the previous agreement) and changes how rebates are issued. Under the prior agreement, grant debt service had to be paid before any tax‑increment rebate would be issued; staff said that structure would have made a rebate unlikely. The revised agreement separates debt‑service paydown from rebate issuance and proposes an 80% rebate of tax increment over 20 years. The agreement also includes milestone requirements that did not exist in the prior document.
Staff said the developer plans to complete the Broad & Main on 6th building by Dec. 31, 2026, and will appear at the Dec. 17 council meeting to answer questions. Jake Hahn and other city staff have been coordinating access and schedule issues between the Broad & Main site and the adjacent plaza project.
On financing (A10), staff said the funding ordinance will include the $3.5 million grant, the remaining internal loan balance related to the earlier agreement (about $525,000), and issuance costs. Staff plan to cash‑flow the grant with the capital projects fund and reimburse the city at spring bond issuance.
