4A Board approves land sale and $950,000 in staged incentives for downtown redevelopment

The 4A Board voted unanimously to approve a land sale and related incentive package designed to support a two-story redevelopment in the Old Town plaza area.

A presenter for the developer outlined the agreement’s main terms, saying the project anticipates a $3,000,000 capital investment (excluding the land), a $1,100,000 land purchase with a closing by April 1, and a construction timeline that defines “commencing construction” as pouring the foundation by Oct. 31. The developer must complete the project by Dec. 31, 2027, obtain a certificate of occupancy and open to the public by May 1, 2028. “So a total incentive of 950,000,” the presenter said, describing three staged cash grants: $350,000 after asbestos removal and demolition, $300,000 upon issuance of a building permit, and $300,000 upon receipt of the CO tied to a corporate relocation milestone.

Board members discussed the pro forma return projections, which the presenter said conservatively do not include potential future sales tax from ground-floor retail. A committee member raised the pro forma concern directly: “The 81%, that was what I'm hung up on as well,” the member said, pressing whether adjustments could improve the 10-year return. The presenter responded that adding expected ground-floor sales-tax revenue would likely raise the 10-year return above the roughly 81–82 percent shown in the pro forma.

Chair comments during the discussion emphasized the board’s support for the design and the project’s role in completing the plaza redevelopment vision. “I love the building,” the Chair said, adding that while the board would prefer stronger short-term returns, delaying the project to chase a higher 10-year return could waste years of progress.

The board moved on two separate actions. For item 3b (the land sale) the Chair recorded “a motion by Adam, a second by Larry” and the motion passed by unanimous vote. The board then approved item 3c (motion recorded as moved by Phil and seconded by Larry) by unanimous vote; the transcript records no further substantive discussion of item 3c in these segments.

The presenter and developers were on hand to answer questions; the presenter noted the pro forma lists a CapEx line of $4,000,000 when land is included and that the incentives are funded from 4A dollars rather than the general fund. The board adjourned at 04:10 with no request for executive session.

The board’s actions set the project’s milestones and the conditions for staged incentive disbursements; next procedural steps were the recorded approvals of items 3b and 3c and the developer’s closing and permitting work that trigger the cash grants.