The Municipal Service and Properties Committee on Nov. 10 approved Ordinance 13-10-2025, which requires the director of community development or the director of finance to deposit any voluntary payment-in-lieu (PIL) from the Heirloom company into a fund designated for Hermann Park renovations and site improvements.

Director DeRosa summarized the measure as a vehicle to ensure that funds received through the citys tax-abatement process are directed toward the parks future improvements. "They'll be paying $660,000 in a voluntary payment in lieu instead of providing affordable housing," DeRosa said, describing the payment as the product of the tax-abatement formula. Councilwoman Spencer told the committee she has also set aside $200,000 toward the project and said the ordinance pairs with a separate measure that would rename the park "Judge Raymond L. Pianca Park" once the improvements are complete.

Council members pressed staff on timing and oversight. Staff and council clarified that the PIL is due upon issuance of the certificate of occupancy and that the tax-abatement ordinance establishes a fund; all expenditures from that fund will require legislative authority from city council. Councilman Brian Casey and others asked whether PIL dollars are restricted to the ward where the development sits; staff said the ordinance does not mandate local spending and that the council has authority to decide where funds are used unless the ordinance sets restrictions.

Councilman Harrison and others asked whether the Heirloom entity had prior projects in the city; staff said the developer previously built a project on Detroit Avenue ("the Wellian") and that this appears to be their first project under the current company name. Several members asked staff to provide written documentation of legal and policy provisions about when a transfer below fair market value might be considered and the mechanics for collecting PIL funds at certificate of occupancy.

What happens next: The funds will be held in the PIL fund established by finance and any expenditure will require separate council authorization and public engagement through capital projects when the city programs the renovation.