Body approves boundaries and project plan for TIF 37, a $519,000 grant pass-through for Lot 4 of Iverson Second

The governing body voted to establish boundaries and approve the project plan for Tax Increment Financing (TIF) District 37, a grant pass-through request of about $519,000 for Lot 4 of Iverson Second. Staff said the notice initially included more land than necessary and that boundaries were narrowed to the legal description in the project plan.

Staff described the TIF as a grant pass-through structured over 20 years so the associated debt does not count against the city’s constitutional debt capacity. Staff said the funds must be used within the first five years of the TIF and that the developer, identified in the project plan as Interstate Glasses, expects to move to the location with the potential to hire at least three employees. "It's fairly standard when compared to our other TIFs," a staff member said.

The TIF review team provided comments that were incorporated into the project plan, and the project plan was sent to the Department of Revenue, which provided preliminary approval as an economic development TIF. Members voted to set the boundary to Lot 4 and then to approve the project plan and recommend it to council. The transcript’s recorded roll call for the project plan shows several members voting yes and two members—Sunny and Gerza—recording abstentions; the motion carried.

Staff noted the developer must certify its costs to the city. The project plan in the packet lists estimated project costs and indicates the applicant requests $519,000; staff said the total TIF-eligible project cost figure in the materials is higher and that the request is limited to the $519,000 passed through over the 20-year term. The plan includes a provision that the TIF would end early if the requested amount were paid prior to the 20-year term.