Village staff briefed trustees on a potential restructuring of the 2013 development agreement for the Madison & Maine property in Tax Increment District (TID) No. 5, recommending the village replace the existing agreement with a tax agreement that would preserve increment protections through the life of the district.

Staff said many developer obligations in the 2013 agreement have been satisfied and noted the property’s assessed value now exceeds $12 million. Officials proposed negotiating a tax agreement that retains necessary preservation and maintenance language (such as requirements to keep the property taxable and maintain the site) while removing personal guarantees that a prospective buyer would not want to assume.

Rob Evans, attorney for the sellers, confirmed there are rent restrictions on certain units that extend for roughly 20 years and said those restrictions will continue to limit rent increases for affected units. The buyer’s representative, Carter, said the buyer intends to continue to operate the property as currently used.

Trustees asked staff to draft a replacement tax agreement and return with final language; staff said a follow-up document would come back for board approval and that the existing development agreement would be terminated at closing when the village is paid under the agreement.