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Maxwell approves development agreement with Third Millennium after amendments on term and fee reimbursement
Summary
After extended debate over 10‑year vs. 15‑year tax‑increment terms and whether the city should be reimbursed for engineering and legal fees, council approved the development agreement with Third Millennium with an amendment preserving a 10‑year base term, a mechanism to reconsider extension at year 10, and language about fee reimbursement to be clarified with bond counsel.
The Maxwell City Council approved a development agreement with Third Millennium Development LLC that authorizes annual appropriations of certain tax‑increment revenues for the project's infrastructure, after amending the resolution to address council concerns about term length and fee reimbursement.
Council members debated whether to approve a 10‑year tax‑increment term as drafted or grant a 15‑year term requested by the developer. Several members and advisers said the longer term could be justified by slower buildout projections; others preferred starting with 10 years and retaining flexibility to amend later. The transcript shows an initial motion to approve the agreement as presented failed; the council later approved the resolution amended to approve a 10‑year base term with a provision for reconsideration at year 10 and to include language addressing reimbursement of certain city fees.
Council discussion also focused on coordination with the local school district and bond counsel. A financial adviser present noted that consideration of school district impacts and consultation are part of the process. One participant said the difference between 10 and 15 years in their model could be a few extra houses in the early years, changing the schedule for when the increment repays infrastructure costs.
What the council approved: The amended resolution authorizes the development agreement as modified (10‑year base term with a planned review at year 10 to consider extension and inclusion of fee reimbursement language). Council instructed staff to work with bond counsel and to consult the school district and Story County as part of the implementation and to return any recommended legal changes to the council.
Next steps: Bond counsel will draft the specific language for fee reimbursement and any conditional extension language; staff will coordinate required consultations with the school district and Story County.
