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Council schedules public hearing on development agreement for Edible Gardens Prairie Hills LLC, cites $6.3M TIF cap
Summary
The council set a June 15 public hearing to consider a development agreement for Edible Gardens Prairie Hills LLC for a commercial redevelopment at 401 Des Moines Street; staff said the draft ties annual appropriation TIF payments to a cumulative cap of $6.3 million and that those payments are not general obligations of the city.
Webster City — The Webster City Council on June 1 voted to set a public hearing for June 15 at 6:05 p.m. on a proposed development agreement with Edible Gardens Prairie Hills LLC for redevelopment of 401 Des Moines Street.
Ariel, city staff, said the draft development agreement provides annual appropriation TIF payments “capped at a cumulative total of not to exceed $6,300,000 over the life of the agreement.” Ariel emphasized the financial commitment “is not a general obligation of the city,” and that payments will be funded solely from increment tax revenues generated by the specific property.
City staff and council discussed obligations tied to the TIF assistance: the company has represented a $25,000,000 private investment in site improvements, must remove temporary fencing and mounds of dirt, maintain on-site business operations, pay property taxes without requesting abatement, and comply with any IEDA economic development grant requirements if applicable. Staff described the developer’s TIF request as 75% of anticipated increment and said the TIF is expected to run about 15 years.
Why it matters: If approved after the public hearing and subsequent council action, the agreement would use TIF increment from the specific property to support the project rather than city general obligation debt; the arrangement is intended to spur commercial redevelopment and expand the local tax base.
What’s next: A public hearing is scheduled for June 15; council members and interested residents may comment at that hearing.
