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Council delays decision after developer asks to start tax incentive early and extend term
Summary
The City of Perry council debated a developer request to begin property-tax incentives before a planned 344-unit completion and to extend the incentive from 10 to 15 years; councilors said the change would weaken leverage to finish phase 2 and voted to table the item until the developer can appear.
At its April 14 meeting, the City of Perry City Council discussed a request from the operator of a multi‑phase apartment project to begin the project's property‑tax incentive immediately rather than after completion of 344 units and to extend the incentive term to 15 years.
Council members and staff reviewed the incentive's history (original action in 2016, an amendment in 2017) and the current status of construction. Staff said the developer has completed roughly 120–160 units so far and asked the council to allow partial payouts earlier to help secure financing for a second phase. Council member (speaker 5) summarized the objection many members raised: "They're asking more time to deliver less and get more." The remark captured a core concern that granting the incentive now would remove leverage the city intended to use to ensure full project completion.
Several councilors pressed for clearer guarantees if the city were to change the agreement. Members noted earlier promises and incentives had been rescinded in later documents and questioned whether the city would receive enough public benefit if the incentive were paid now. As one councilor put it, permitting the incentive before the additional units are completed would "take away your leverage when you allow them to be able to get the incentive now, which is paying back a portion of their taxes." (speaker 5)
After extended discussion about the ordinance, contract form, and the competing needs to support local housing versus protecting the city's fiscal interest, the council agreed to postpone action and ask the developer to appear in person to explain current financing and a timeline to complete additional units. Chair (speaker 3) directed staff to contact the applicant and reschedule the item; the discussion was tabled pending the developer's attendance.
Why it matters: The incentive was designed to spur a large, multi‑phase project; modifying the timing or length of the incentive changes the tradeoffs councilors used to justify subsidizing private development. Councilors said they want any early payout tied to verifiable milestones and safeguards to protect the city's tax base.
Next steps: Council tabled the item and asked staff to invite the developer to a future meeting to explain financing and construction timelines. No final amendment or ordinance change was adopted on April 14.
