Council repeals city-backed bond authorization after developer opts for developer-backed financing for Park and Popppler

Janelle Fairman, executive chief of economic and community development, asked the council to approve ordinance 26-21 to repeal ordinance 25-85 after the Park and Popppler Midtown project’s developer shifted from a city-backed lease-rental bond to a developer-backed purchase bond. Fairman described the project as an approximately $123 million mixed-use development including two office buildings, a 523-space parking garage and about 240 multifamily units and brownstones.

“Because the developer opted for a developer-backed bond, the risk is on the developer rather than the city,” Fairman said, explaining that the alternative would have required a municipal building corporation and a lease component that would have left the city holding the land or asset for the bond term. Brad Bingham, bond counsel, told council that the revised financing mirrors common practice for developer purchase bonds and that, given the interwoven nature of prior documents, it was simpler and clearer to repeal the earlier ordinance and proceed with new bond documents.

Councilors asked whether parking allocation, advanced parking technology and management arrangements would change under the developer-backed structure. Staff said up to 30% of remaining parking spaces may be reserved for municipal use per the developer agreement and that the developer will implement the city’s eco-parking software and license-plate recognition technology. The council voted to adopt ordinance 26-21 as presented.