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Peosta council signals support to pursue TIF for Burt Family Practice
Summary
Council gave verbal support and a straw poll to pursue a 10-year tax-increment financing package for Burt Family Practice, discussed front-loaded percentage schedules and a not-to-exceed cap while staff outlined next steps including adding the project to the urban renewal plan and drafting a development agreement.
Peosta’s City Council on an April meeting signaled its intention to pursue tax increment financing (TIF) for a proposed Burt Family Practice clinic, giving the project a verbal green light and directing staff to start the steps needed to formalize a package.
During a long discussion about structure and timing, council members said they favored a 10-year, front-loaded schedule to provide early relief to the developer. Council members described illustrative schedules that begin with larger reimbursements (examples discussed were two years at 90% followed by gradually lower percentages over the 10-year period). Council members also asked staff to identify a “not-to-exceed” cap; staff and the applicant discussed using a cushion and the council referenced $200,000 as a potential ceiling for now.
Paul Desmond, who identified himself as representing the project’s architect, said he wanted clarity about how the county assessor sets post-construction valuation and whether there is an appeals route. “Paul Desmond with Form Function Studio, 101 16th Street Southwest, Suite A, Cedar Rapids, Iowa,” said, identifying himself and his office’s address before asking how appraisal and appeal processes would affect the TIF calculation.
City staff explained that the county assessor will set the valuation on the January 1 snapshot after construction and that any appraisal appeal would be handled through the county assessor’s processes; the city’s role is to approve the TIF schedule and the development agreement that implements it.
Council members and the applicant discussed next steps: the council can give a verbal intent tonight, add the property to the urban renewal plan (which requires public hearings), and direct bond counsel to draft a development agreement. The council’s direction was framed as an intent to proceed rather than a final binding action; staff said formal steps and public hearings—likely over the coming months—would be required before any TIF reimbursements began.
The council also asked staff to prepare a not-to-exceed number and to have bond counsel and staff draft the development agreement language for a future work session. The mayor and multiple council members expressed general support for the project and appreciation for the applicant’s commitment to the community.
What’s next: staff will prepare the formal materials—public hearing notices, an urban renewal amendment and a development agreement drafted by bond counsel—so the council can consider formal approval at a later meeting.
