Developer says Fox Ridge project needs TIF as Norfolk planning commission recommends redevelopment plan

The Norfolk Planning Commission on Aug. 5 heard a public hearing and voted to recommend the redevelopment plan for the Fox Ridge project after a presentation by the applicant, Steven Ramikers of Granville Custom Homes.

Ramikers said the city included the parcel in a Highway 275 blight study and that he purchased the land intending to develop smaller, more-attainable lots using tax increment financing (TIF) to lower lot costs. He told the commission that TIF is necessary to make the project financially viable: "This project will not happen but for TIFF [TIF]," he said.

Key numbers presented at the hearing: staff and the applicant referenced exhibits showing a TIF sizing figure read in the record as "1,071,184" (transcript read as "1 million 71,184"). The applicant discussed total development cost for full buildout in excess of $9.1 million, with about $7.2 million attributed to the houses. The applicant said Granville would front development costs and that the TIF would reduce the developer’s lot cost to approximately $35,000 per lot to support homes targeted roughly at $400,000 retail prices. The plan presented includes housing with main-floor plans near 1,500 square feet and options to provide garages; the developer said initial spec homes would likely be built without finished basements to control costs.

Commissioners and staff asked questions about the TIF percentage and timing. Staff referenced exhibits (Exhibit D and Exhibit E) showing uses and TIFable development costs and said the blight/substandard percentage for the area is about 27.7 percent. Staff (Randy) said he expects the TIF to pay off sooner than the 15-year period if assessed values rise as projected.

Commission members discussed the public-policy implications of using TIF, concerns about whether the property qualifies as blighted or substandard, and whether stacking other assessment districts (paving, water, sewer) would be appropriate. The applicant said his firm does not intend to stack assessment districts on top of the TIF for this project.

A motion to recommend approval of the Fox Ridge redevelopment plan (including the TIF sizing shown in the exhibits) was made, seconded and approved with all commission members present voting in the affirmative. The record does not show a separate formal vote tally by name beyond the commission’s announcement that all present voted yes.

The record contains multiple numeric references in discussion and exhibits; where the transcript presents inconsistent or approximate figures, this article reports the numbers as they were stated in the hearing and marks them as presented by staff or the applicant.