Lennox approves first reading of ordinance to expand discretionary formula to multifamily developments

The council approved the first reading of ordinance 6-65, an update to the city's discretionary formula that aligns language with current state statute and expands eligibility to include commercial multifamily and affordable multifamily projects (defined as residential developments over four units).

Staff explained that the ordinance modernizes outdated statutory references and adds language so residential developments over four units can access the discretionary formula, which previously had been used mainly by industrial and commercial users. "Previously, this is doing two things. It's updating the language to current statute," staff said when presenting the item.

Council members discussed the mechanics and percentages tied to the formula under state statute and noted that, under certain state bills under consideration, eligibility for TIF and similar incentives might change; staff said the ordinance and memo would be updated as necessary if the state legislature acted.

A motion to approve the ordinance on first reading was moved, seconded and carried by voice vote.

Staff said the ordinance will return for additional readings as required by municipal code and that any cross-references to newly amended state statutes will be adjusted when final text is prepared for second reading.

The council did not take final action beyond first reading; the item will return for subsequent readings as part of the standard ordinance-adoption process.