Council approves amendment to Dunn Industrial Condominiums development agreement, delays TIF rebates
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Summary
Norwalk approved a resolution to amend the Dunn Industrial Condominiums development agreement and terminate a $5 million minimum assessment requirement that hindered project financing. The amendment delays TIF rebate payments and schedules partial rebates to begin in 2028, per staff and bond counsel advice.
Norwalk’s council on Feb. 5 approved a resolution amending the development agreement with Dunn Industrial Condominiums LLC and terminating a minimum assessment covenant that staff said impeded financing for phase 2 of the project.
Staff explained the developer requested the amendment because phase 2 is not proceeding on the original timetable and the minimum assessment agreement — which had set a $5,000,000 minimum assessed value by Jan. 1, 2026 — made it difficult for the developer to secure financing when the project’s assessed value is lower during phased completion. Holly (city staff) said bond counsel advised terminating the minimum assessment because the city had not provided an upfront incentive and current practice is to rely on tax‑increment rebate structures tied to actual assessed value.
The amended agreement delays the start of TIF rebate payments and provides the developer a schedule of partial rebates beginning in 2028. Holly said amending agreements in response to construction delays is a routine tool to support project completion. The council approved the resolution by roll call.
The resolution authorizes staff to finalize the amended development agreement and terminate the minimum assessment covenant; the agreement’s implementation will follow standard administrative steps.