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Developer says Downtown Lofts still viable but timeline hinges on CDBG, county and tax incentives
Summary
The Downtown Lofts developer told the commission the project remains viable but cannot provide a firm timeline until county-sponsored CDBG steps and incentive packaging are final; staff will continue administrative coordination rather than pursue contractual remedies.
City staff presented a status update on the Downtown Lofts development agreement (executed April 2024), noting the contractual commencement deadline passed July 1, 2024 and that staff has requested information and meetings with the developer to determine a path to compliance.
The developer addressed the commission, saying the project remains committed but that key elements—including the county-sponsored Community Development Block Grant (CDBG) application and a tax-incentive "stack" (including RHID, HPTC, KHITC among others)—must be resolved before bids and a reliable construction schedule can be provided. The developer said early bids exceeded architect estimates and that the project requires the incentive package and clearer bid results to proceed.
Staff asked the commission for direction on administrative vs. contractual remedies; after discussion commissioners expressed support for continued administrative engagement with the developer and for returning to the commission if the developer fails to reengage or provide a milestone-based amendment. No formal enforcement action or amendment was adopted at the July 13 meeting.
