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Council tables Third Millennium development agreement, asks for TIF calculations and school/county concurrence
Summary
Developers asked the council to extend a 10-year TIF to 15 years to meet project returns; council members requested underlying valuation and build-out calculations and voted to table the resolution until planning-and-zoning review and further documentation are provided.
During a public hearing, a representative for Third Millennium Development LLC requested city approval of a development agreement that would authorize annual tax-increment (TIF) payments and pledged certain increment revenues. The developer said their financial model assumed a single-family home valuation around $290,000 with an annual 3.5% increase and an aggressive build-out pace of 5/5/6 homes across three years to produce the requested TIF capture.
The developer asked the council to extend the originally proposed 10-year TIF to 15 years to capture the full estimated increment needed for the project. Council members asked to see the actual calculations and assumptions used to project the TIF revenue, and noted that school and county levies would need to concur with any extended exemption. One council member said, “I’d like to see that—what are the calculations behind it?” and another asked for school and county approval language.
After discussion, a motion to table the resolution approving the development agreement was made and carried, with council members saying planning and zoning needs to review final plat changes and the council needs the developer’s valuation assumptions in writing before moving forward.
Next steps: staff will route the final plat and any proposed changes to planning & zoning and return the development agreement to council after planning review and the developer provides the underlying calculations and required concurrence documentation.
