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City presents Keystone Broad Street redevelopment plan and draft TIF agreement ahead of October vote
Summary
City staff and developers outlined a three-phase Keystone Broad Street redevelopment and a combined development/TIF agreement to be considered in October. The plan includes multifamily, condos, retail, parking garages and a potential hotel; presenters described a roughly $150 million private investment and a 20-year TIF reimbursement structure.
City staff presented a detailed overview of the Keystone Broad Street redevelopment plan and the combined development and Tax Increment Financing (TIF) agreement the council is slated to consider at upcoming meetings.
Darren, the city presenter, described the project as phased in three sections: Section 1 would contain approximately 239 multifamily units with much of the retail and a parking garage; Section 2 would include about 100 condominium units, retail and a second parking garage; Section 3 is a speculative hotel of about 115 rooms. Darren said the private investment is roughly $150 million in taxable value, with an assessed value example shown near $55.7 million for the purposes of TIF calculations.
Darren summarized the proposed 20-year TIF reimbursement arrangement, saying roughly 84% of property tax from the developed property could be routed through the TIF with county and city shares split as modeled; he noted the county would carry a majority share of the reimbursement. He also explained sale prices and phasing assumptions for the developer’s purchase of Sections 1 and 2 and the option on Section 3, and emphasized contingencies including a required relocation agreement with WGNS before certain closings and a city right to repurchase if vertical construction does not commence on schedule.
On financing and risk, Darren said developer financing for Section 1 is in place, that HUD loans and predevelopment equity are expected to cover upfront work, and that Section 2 presales would likely be a condition for conventional lending. He said the city built provisions to recover property if the developer fails to commence construction.
Why it matters: The redevelopment would alter downtown property, add housing, retail and hotel capacity, and use a long-term TIF to reimburse part of the property tax increment. Council members asked detailed questions about phasing, presales, garage costs, incentives and contingencies; Darren said the development agreement and TIF would be presented to the Industrial Development Board and then return to council for final action.
What’s next: City staff will aim to bring the development agreement and TIF to council for review on Oct. 2 and, if needed, again on Oct. 23 after IDB action. The council made no commitments at this meeting but indicated they want the draft agreement as soon as possible to review prior to the IDB meeting.
