Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Heritage Square Tif topic
No spam. Unsubscribe anytime.
Andover council approves second amendments to Heritage Square development agreements to allow developer reimbursement from future TIF revenues
Summary
Council approved second amendments to development agreements for Heritage Square's TIF areas 1 and 2, allowing repayment to developers for a prior letter-of-credit draw while preserving city repayment priority and setting letter-of-credit coverage thresholds (22% area 1; 35% area 2); motion passed on a unanimous voice vote.
The Andover City Council on June 30 approved second amendments to the development agreements for the Heritage Square/Heritage Landing tax-increment financing (TIF) district for project areas 1 and 2, allowing developers to be reimbursed from future tax-increment revenues for a prior draw on a letter of credit.
City Administrator Jennifer McCauslin explained that the original development agreements allowed a first draw on a letter of credit in 2025; when tax-increment projections fell short the city made a draw. The amendments provide a mechanism to reimburse the developers from future increment once the city's advancing of funds, debt service and agreed future public improvements are satisfied.
Staff told the council the district supports public infrastructure including art, paving, wastewater and water lines and that current annual debt payments are about $2.2 million through 2039, with a reduced amount after 2040. The amendments set protective terms: the city will be repaid its advances first, and area-specific letter-of-credit coverage thresholds are specified (22% of outstanding principal for area 1; 35% for area 2, the latter matching the city's subdivision policy).
Jennifer McCauslin said city staff and the development team worked to protect the city's interests while accommodating a path to reimburse developers; representatives from the development team (Dr. Lease and Jerry Jones) were present for council questions. Council members asked clarifying questions about TIF vs. community improvement district (CID) funds and confirmed maintenance funding mechanisms under a CID are separate from TIF debt-service uses.
Council moved to approve the second amendment for area 1 and then for area 2; both motions carried on voice votes (recorded as 5-0 on the final tally). The amendments will allow the city and developers to agree on future mutually approved uses of increment and set conditions for reimbursements and improvements.
The action does not change the city's priority to pay debt service and city obligations before developer reimbursements; staff said any future improvements paid from increment would be mutually agreed upon.
