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Le Mars approves Crossroads Commons development agreement; city to fund infrastructure reimbursed from TIF
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Summary
Council approved a development agreement with the Le Mars Business Initiative Corporation (LBIC) to fund Crossroads Commons infrastructure; the city will front costs and LBIC will repay by mortgage as lots sell, with the city citing a reimbursement amount of $1,308,320.65 to be covered through TIF.
The Le Mars City Council on March 3 approved a development agreement with the Le Mars Business Initiative Corporation (LBIC) to fund infrastructure for the Crossroads Commons addition.
Administration presented a development agreement under which the city will fund the infrastructure construction and LBIC will repay the city as lots are sold, securing repayment by mortgage. The presentation cited a reimbursement amount of $1,308,320.65 and noted the city cost will be reimbursed from tax-increment financing (TIF).
A city staff member (S6) described the arrangement as consistent with past agreements between the city and LBIC, saying repayment of infrastructure costs as lots are sold has been the typical approach. Council member S4 moved to approve the development agreement for the Crossroads Commons addition, the motion was seconded and carried.
The council did not discuss detailed timelines for lot sales or the mortgage repayment schedule at the March 3 meeting. The agreement, as presented, places the city’s initial outlay on the capital plan and relies on future lot sales and TIF reimbursement to recover the stated amount.
