Altoona council adopts urban renewal amendment, approves $17.5 million Sunstone development agreement

The Altoona City Council on Jan. 6 adopted an amendment to the Altoona Urban Renewal Plan and approved a development agreement with Sunstone Investments, LLC that authorizes annual-appropriation tax-increment financing reimbursements for an amount not to exceed $17,500,000.

Finance Director Andy Lent told the council the Urban Renewal Plan amendment covers three items: (1) a payment to Prairie Crossing for stormwater infrastructure previously approved by the council; (2) a proposed development agreement with Sunstone Investments for development of land north of Walmart with an expected valuation of approximately $72,000,000 once completed; and (3) the 9th Street NE Phase 2B project, anticipated to be funded with urban renewal bond notes not to exceed $2,000,000 and a RISE grant of $1,509,207. Mr. Lent also said the city held a consultation meeting with other taxing entities on Dec. 23, 2024; no officials from those entities attended the consultation meeting.

Economic Development Director Chad Quick summarized the Sunstone proposal and said the agreement would reimburse actual eligible costs up to the stated not-to-exceed amount and would be subject to annual appropriation by the council. The council opened and closed the public hearing at 6:38 p.m. with no members of the public speaking. The resolution approving the development agreement and the Urban Renewal Plan amendment passed by roll-call vote recorded as 4-0.

The development agreement as presented reimburses eligible costs using tax-increment revenues; the transcript records the not-to-exceed cap and the 14-year reimbursement window and notes that repayments are subject to annual appropriation. The council did not record additional funding details or developer obligations beyond what was summarized in the hearing record.