Polk City council approves TIF-backed development agreement for 1401 Bridge Road

The Polk City Council on April 27 approved a development agreement with PC Dev Partners LLC that authorizes annual appropriation tax-increment financing (TIF) rebate payments not to exceed $665,000 over eight years for a commercial project at 1401 Bridge Road. Mayor Rob opened and closed the public hearing on the proposal before the council voted to adopt the resolution.

City staff told the council the proposal covers construction on lots two and three of the site, which will contain two strip retail buildings and a standalone commercial building. The estimated construction cost for the phase before the council is about $6.6 million, and the total anticipated private investment for the overall site exceeds $10 million. Staff said the city previously amended its urban renewal plan for this project not to exceed $1 million; the $665,000 rebate is for the phase now under consideration, with a later agreement expected for lot one (not to exceed $335,000) so the total remains inside the $1 million amendment.

Trent Smith of ATI Group, the developer working on the project, told council members the rebate agreement is structured as a post‑completion tax rebate. He said the rebate would be used to reduce tenant rents ("buy down" rent), closing a financing gap created by current construction costs and market rents; he estimated the reduction at roughly 10–15% on a typical 1,500‑square‑foot strip bay and said the rebate is a condition lenders expect for the project to proceed.

Council members asked about new reporting clauses in the agreement. Staff and the developer said the final agreement includes a vacancy reporting requirement that would obligate the developer to notify the city and provide documentation if a space remains vacant for six months, and that the agreement restricts certain uses (staff noted the agreement excludes vape shops). The developer identified two early tenants in public remarks: an end‑cap drive‑thru food user and a ~2,500‑square‑foot medical office.

The council voted on the resolution in roll call: Zborac — yes; Hill — no; Otis — yes; Serchett (variant spelling) — yes; Savage — yes. The motion passed, and staff will finalize the contract documents and proceed with execution and implementation steps.

Next steps: staff will finalize the development agreement documentation, return an executed contract for the council's file, and monitor developer compliance with reporting requirements during the rebate period.