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Joint Review Board approves creation of Tax Incremental District 12
Summary
After a presentation from Ehlers, the Joint Review Board voted unanimously to create Tax Incremental District (TID) No. 12. The project plan lists about $12 million in infrastructure costs, projects roughly $27.1 million of incremental value and anticipates nearly $10 million in tax increment over 20 years.
The Joint Review Board voted unanimously to adopt a resolution creating Tax Incremental District No. 12 following a presentation on the proposed project plan.
Ella Greg of Ehlers, the city’s financial advisor, presented the project plan and financial analysis. Greg said the proposed district is a mixed‑use district with newly planted residential estimated at about 17% of the district (under the statute’s 35% cap). The plan lists roughly $12,000,000 in identified infrastructure and development incentive costs and projects about $27,100,000 in incremental value; Greg said that amount would generate just under $10,000,000 in tax increment over the district’s 20‑year maximum life. “So within the project plan, there’s about $12,000,000 of infrastructure and development incentive costs identified,” Greg said.
Greg described how reimbursements to a developer would be tied to construction and valuation milestones and presented financing illustrations including sewer reimbursements and promissory notes referenced for 2025. The plan cites several developments already in progress within the proposed boundary, including WW Dairy, Medjaste cold storage and BiTech. Greg also said the development agreement being prepared would include security provisions: the developer would guarantee sufficient increment to obtain reimbursements, would be required to make shortfall payments if increment were insufficient, and the city could use a letter of credit and, if necessary, special assessments as additional security.
A board member asked whether the plan’s cost estimates — prepared in January — remained reliable given recent events that could raise construction costs. Greg replied that the proposed development agreement would cap the city’s contribution at the January estimates and shift increases above that cap toward the developer. The chair and another board member noted they expect the agreement provisions to limit the city’s financial exposure.
After discussion, the chair called for a motion to adopt the resolution creating TID No. 12; a motion and a second were made and the clerk conducted a roll call. The recorded votes — Jim Namath, Ariana Vaguely, Jane [name redacted in transcript], Ron Olson and Britney Randy — were all recorded as yes, and the resolution passed.
The board then moved to adjourn and the meeting closed.
