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Council approves up to $2 million in TID assistance for Jamestown Quarry retail center
Summary
The council approved a development agreement authorizing up to $2 million in pay-as-you-go TID assistance (two-thirds of increment for up to 11 years) to support extraordinary site costs for a 69,500 sq ft Jamestown Quarry retail center, contingent on joint review board action and finalized leases.
The Common Council on June 23 approved a developer assistance package for the Jamestown Quarry retail project that provides up to $2 million in pay-as-you-go tax‑increment financing (TIF) assistance to cover extraordinary site costs.
Project and assistance: staff described the project as an approximately 69,500 square-foot retail center and estimated total private investment around $20 million. The developer identified extraordinary groundwork costs, including excess soil removal, an on-site retaining wall and underground stormwater facilities that could not be daylighted; these costs were estimated at roughly $2.7 million. Ellers, the city's financial advisor, presented a two-step analysis that (1) identified extraordinary costs and (2) evaluated the developer's projected return on investment to determine minimum public assistance necessary to achieve financial feasibility.
Recommended structure: the financial analysis recommended pay-as-you-go assistance equal to two-thirds of the increment generated by the development, for an 11-year period, to bridge the financing gap identified for the extraordinary costs. The city's remaining one-third of the increment would remain in the TID for public improvements listed in the TID plan.
Conditions and process: council members were told the agreement is contingent on the joint review board's action (scheduled separately), on final lease execution for an anchor tenant, and on the mayor's final sign-off when a lease is complete. The mayor and staff noted the joint review board would receive the TID report and that the developer agreement would not be executed until the lease and required approvals are in place.
Council and staff comments: alder members and staff emphasized the —but-for— test (that the development would not proceed without public assistance) and highlighted upcoming opportunities for public review during the joint review board meeting. Staff said TID annual reports and a TID 101 overview would be presented to the joint review board to improve public understanding of the financing mechanism.
Outcome: council approved resolution R-1826 authorizing the TID pay-as-you-go assistance, contingent on joint review board approval and final lease terms. Staff said construction across the front of the site (bank, Chick-fil-A, McDonald's) is already under way and later phases (the retail center) could begin this fall depending on tenant leases and permit timing.
What's next: joint review board action (scheduled immediately following the council's committee of the whole) and final lease execution are prerequisites to actual TIF payments; staff will present TID annual reports and additional financial details at follow-up meetings.
