Get AI Briefings, Transcripts & Alerts on Local & National Government Meetings — Forever.
Council approves TIF agreement for 122 North Main Street; third payment conditioned on sales-tax-generating lease
Summary
The council unanimously approved a TIF redevelopment agreement with Curious Nomad LLC for 122 North Main Street. The agreement provides three equal annual payments not to exceed $87,783.95 in total; the third payment is contingent on a lease for a sales-tax-generating business expected to produce at least $5,000 in annual home rule sales tax.
The Washington City Council unanimously approved a tax-increment financing (TIF) redevelopment agreement for 122 North Main Street with Curious Nomad LLC.
Community and Planning Director John Alfond told the council the agreement is structured to provide three equal annual payments with a not-to-exceed total of $87,783.95. “The third of those… would only kick in if or when there was the submittal of a lease with a sales tax generating business,” Alfond said, and noted the agreement requires that the business would be projected to generate at least $5,000 in annual home rule sales tax.
Alderson Blende asked how the city would validate that $5,000 projection. Alfond replied the city would review the submitted lease, compare it to similar businesses and estimate likely sales tax generation; he described $5,000 as “admittedly an arbitrary number” intended to create a measurable threshold.
The council moved and approved the resolution to adopt the agreement (motion by Johnson; second by Sluder) with a unanimous vote.
What the agreement says: the TIF reimbursement is capped at $87,783.95 in total, paid in three equal installments, and the final installment is contingent on documentation that a lease with a sales-tax-generating tenant is in place and projects the minimum threshold.
Next steps: the city will rely on submitted lease documentation and staff review to determine whether the third payment becomes payable; the resolution was adopted and no additional changes were made during the meeting.
