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Moore holds first public hearing on Verner's TIF plan proposing three increment districts and $42M in infrastructure
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Summary
Jeff Sabin of the Center for Economic Development Law gave an overview of the Verner's project plan and tax increment financing (TIF) structure, describing three increment districts, a $42 million project budget (mostly public infrastructure), an expected 250–300 jobs from the primary site and a 15‑year cap on TIF apportionment.
Jeff Sabin, a partner at the Center for Economic Development Law, presented the first of two required public hearings on the Verner's economic development project plan, explaining how tax increment financing would support public infrastructure and private development in three proposed increment districts north of 27th Street.
"TIF does not impose any new taxes. It also does not abate any taxes," Sabin told the council as he outlined the tool and how the increment is collected and apportioned. He said staff proposes three increment districts—with TIF A intended for a regional fulfillment center, and TIFs B and C for adjacent light industrial and commercial uses—and described the project area as lying between I‑35 and Paul Road.
Why it matters: the project plan would let the city apportion the increase in tax revenue generated within the district to a separate fund used to reimburse public infrastructure costs that make development feasible. Sabin said the plan is designed to be funded on a pay‑as‑you‑go basis and that the city is not proposing to issue upfront TIF debt.
Sabin told the council the project budget is approximately $42,000,000, most of which is for public infrastructure (roughly $28 million), including widening Northeast 27th Street and Eastern Avenue, rebuilding Poe Road for heavy truck traffic, on‑site water and sewer service (including a new pump station west of I‑35), and drainage improvements to address flash‑flooding risks. He said the plan includes a six‑year reimbursement and a small allocation (about $950,000) to reimburse city and county setup and administrative costs, plus a roughly 10% contingency.
On local economic impact, Sabin estimated "about 250 to 300 jobs" at the primary TIF A project and said the combined districts could generate more than $200,000,000 in new market value over a 15‑year period. He added that if TIFs B or C develop without assistance, the district could be paid off faster than the 15‑year horizon proposed in the plan.
Sabin also described the statutory process: a review committee of affected taxing jurisdictions and at‑large public members had reviewed the plan and recommended it as a reinvestment area; the planning commission also reviewed the draft and recommended approval. He reminded the council that tonight's hearing was informational and that a second public hearing is scheduled for the council's regular meeting on May 4; the council will not be able to consider an approving ordinance until after that second hearing.
Council members asked clarifying questions about the project's effect on taxing jurisdictions, how developer assistance would be budgeted (Sabin said the plan budgets up to half the potential increment for private assistance if necessary), and the contingency of the plan on the actual development occurring. Sabin noted that if the underlying project fails to occur, the city may terminate the project plan but any outstanding contractual obligations could have legal consequences.
The council recessed the hearing without taking a vote; the second public hearing is set for the May 4 council meeting.
