Council establishes TIF district and approves redevelopment agreements for former Macy’s site, adds leasing commitments and agrees to study a France Avenue ped‑

The City Council voted Nov. 19 to establish a tax‑increment financing district covering the former Macy’s site on France Avenue and to approve three associated redevelopment agreements with Enclave Companies and Lifestyle Communities, with additional contract language to set expectations for commercial tenant mix and marketing disclosures.

Staff presentation and findings: Economic development manager Bill Neuendorf summarized an extensive review process and a TIF financing plan that staff said meets the city’s but‑for and public‑benefit tests. Neuendorf said the project would divide the eight‑acre site into multiple development parcels, create new public easements (streets, sidewalks and plazas), provide public parking at grade, require developer contributions (including park and utility fees) and deliver 10% of units as affordable for 30 years across rental and for‑sale portions. Staff said the developers’ budgets show a financing gap of roughly $22.8 million and that public benefits associated with the project total conservatively about $29 million.

Council debate: Several council members pressed staff and the developers on the but‑for determination, the long‑term permanence of affordable housing, and whether TIF is the right financing tool for primarily market‑rate housing. Member Risser and others cautioned that the but‑for test can be nuanced and asked about alternative, less‑subsidized scenarios. Staff and the city’s advisors noted they had reviewed developer financials, sought independent analysis from Ehlers, and included look‑back and clawback provisions in the contracts to protect public interests if the project substantially outperforms projections.

Amendments to agreements: Council approved adding a provision (section 15.11 in each agreement) directing developers to pursue a robust, destination‑style tenant mix and requiring the developers to disclose marketing/leasing plans at the point when they secure financing and give the city the 'go‑ahead' notice. The amendment also adds a reporting/disclosure requirement when the developer confirms full funding.

Pooling and pedestrian crossing: Staff also proposed reserving up to 25% of the future tax increment for public infrastructure or pooled uses. Council members said that reserving does not bind the council to a specific project but provides flexibility; several members highlighted the opportunity to pool funds toward a larger France Avenue pedestrian crossing (underpass, overpass or other) as a transformational regional improvement, while others urged caution and said the city should undertake a deliberate public‑engagement and engineering process before committing funds. Council adopted a modified resolution directing staff to conduct additional study and to explore grant and federal/state funding sources and to prepare a public participation plan and commission briefings.

Votes and safeguards: Council adopted Resolution 2024‑78 to establish the TIF district and approved the three redevelopment agreements with the added leasing/marketing language. The agreements include 30‑year affordability commitments for the 10% of units designated affordable, public parking easements, public‑space obligations, and look‑back/clawback provisions. Members recorded at least one 'nay' and one abstention during the sequence of votes, but the motions carried.

Why it matters: The project would transform a major commercial parcel into a mixed‑use node with new housing, public spaces and infrastructure that could change travel patterns on France Avenue. The TIF would fund a portion of public benefits but staff and council emphasized safeguards and further study for any pooled funds used for the pedestrian crossing.

Next steps: Staff will prepare a community engagement plan, present to relevant commissions, pursue appropriate state/federal grants and return to council for any future decisions to commit pooled or TIF funds to a crossing or other off‑site infrastructure.