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Authority approves plan and pay‑as‑you‑go incentive for 90‑unit Bel Avenue project, with higher front‑loaded share
Summary
The RDA approved a development agreement and new TID for Del Locus Investments’ proposal to build 90 units at 1409 Bel Ave; the body approved a front‑loaded pay‑as‑you‑go reimbursement schedule (90%/75%/30%) with a $2 million cap after staff presented fiscal projections.
The Redevelopment Authority approved terms to support a proposed "missing middle" housing project at 1409 Bel Avenue, where developer Del Locus Investments plans three 30‑unit buildings totaling 90 apartments.
Staff said the currently assessed value of the property is about $564,000, producing roughly $11,700 in annual property taxes. Staff reported an assessor estimate that, on completion, the project could be assessed at about $9.5 million and generate nearly $198,000 in annual property taxes, with approximately $79,000 of that returning to the city.
City staff told the Authority the developer has said the project is not financially feasible without public assistance and therefore requested creation of a new Tax Incremental District (TID 33) and a pay‑as‑you‑go (PGO) reimbursement for certain public improvements. Staff recommended a reimbursement schedule of 85% for the first five years, 75% for the following five years and 35% thereafter, subject to a $2 million reimbursement cap.
The developer urged a more front‑loaded share. "At the 85% requested, the returns are barely 7% ... Having that extra 5% raises that to 8% where I can squint and nod and say great things are coming," Garrett Bader told the Authority, arguing a 90% initial share would materially improve investor returns.
After discussion about precedent and fiscal mechanics, a motion that included a PGO schedule of 90% from 2029–2033, 75% from 2034–2038 and 30% thereafter (reimbursement cap $2,000,000) was moved, seconded and approved by voice vote.
Next steps: staff will finalize the development agreement language and return it for execution; construction timing depends on plan submission and funding side‑deals, with the developer aiming for fall groundbreaking if approvals and financing align.
