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Council approves TIF redevelopment agreement for Mill Street Tap property

Pontiac City Council · April 7, 2026
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Summary

Council approved a redevelopment agreement with Eric Barnard for work behind Mill Street Tap (316 N. Mill St.), authorizing up to $50,000 in reimbursable TIF funds at 75% city / 25% owner with up to 25% advance payment; staff said clawback language will be added for unpaid/incomplete projects.

City staff presented a redevelopment agreement for 316 North Mill Street, owner Eric Barnard's Mill Street Tap, describing interior and rear-site work beyond a simple facade grant. The program would reimburse up to $50,000 of eligible costs at a 75% city / 25% owner split and permit up to 25% of the grant to be paid before final completion in order to keep construction coordinated with nearby city work.

"We would grant him up to $50,000 for this work ... at the rate of 75% city, 25% him," staff said, explaining the agreement structure and that the grant would be reimbursement-based, with a limited advance of up to 25% to assist cash flow. Council raised a question about safeguards if the project is not completed; staff said repayment and clawback language could be included.

Councilor Mike Barr moved to approve the redevelopment agreement; Sarah Horner seconded. The motion included the request to add repayment language to address incomplete projects and passed on a roll call vote.

Why it matters: The agreement is intended to accelerate private investment that dovetails with the city's Centennial Plaza work and to prevent duplicated heavy construction. The reimbursement structure shifts most immediate outlay to the owner while providing a public subsidy to secure exterior and non-façade improvements that the staff characterized as redevelopment rather than a simple façade grant.

What's next: Staff will finalize the agreement with the added repayment/clawback language and transmit the amended document to the owner.