City staff presented a proposed economic development agreement with Alberta Land LLC to redevelop the former Leland Shopping Center site in Alberta City. Staff said the developer is committing to an initial $10 million investment that would cover acquisition, demolition, engineering and construction and that the developer has the property under contract and expects to close shortly.

Under the terms staff described, the city would provide a 100% rebate of city taxes generated on the project site (sales, liquor, lodging, rental, business license and non-educational ad valorem taxes) and a 100% rebate of the building permit fee. The agreement as presented would include a clawback provision of about $250,000 per year under certain conditions and a maximum city obligation of $35,500,000, with an abatement period of 27 years and a five-year trigger/option period. Staff said the developer has agreed to return the site to greenfield condition within six months of the agreement if the project does not proceed.

Councilmembers spoke in support and the committee approved a motion to move the agreement to the full council for consideration on Jan. 6. Staff said the public-notice materials for this and related items would be published ahead of the meeting. The committee did not finalize incentives at the meeting; the full council will consider the agreement.