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Council advances second reading of Imagine More TIF ordinance after public questions
Summary
After extensive public comment and legal explanation, Pella City Council approved the second reading of Ordinance 1090 establishing the Imagine More Urban Renewal Area and laying groundwork for potential future tax increment financing, with staff and bond counsel stressing the ordinance alone does not obligate the city to fund projects.
The Pella City Council on Monday advanced the second reading of Ordinance 1090, which would create the legal mechanism to capture incremental property taxes for development inside the Imagine More Community Urban Renewal Area. Mayor DeWerck and city staff emphasized that adoption of the ordinance establishes the option to use tax increment financing (TIF) in the future but does not itself obligate the city to fund projects.
Resident Anna Rupert asked, “Has the city demonstrated that this project truly justifies public investment through tax increment financing?” citing the Marion County housing assessment and asking how a projected need of 279 rental units aligns with a proposal that could enable roughly 1,350 rental units. Kathy Dow and other residents pressed the council on the blight assessment and the ownership pattern in the study area, saying much of the stock is owned by Central College.
City staff said the urban renewal plan identifies potential projects but that TIF would only be activated if and when a specific taxable development and development agreement comes forward, debt is incurred and certified to the county auditor. Bond counsel Nathan Overberg told the council, “The urban renewal plan ... is just that, a plan that identifies an area and potential projects that the city could elect to do in the future,” and that adopting the plan “opens essentially the toolbox in chapter 403” without forcing any specific tool.
Several speakers urged more public outreach before final adoption. Council members debated whether to table the second reading for more public engagement; after procedural discussion and legal input, the motion to table was withdrawn and the council voted to approve the second reading to move the ordinance forward. The vote was taken by roll call and the motion passed.
The record shows staff estimate roughly $22 million of public infrastructure is included in the Imagine More plan and that the urban renewal area would be active only if taxable development occurs and future council actions proceed. City officials and counsel repeatedly noted any actual use of TIF would require separate votes, public hearings and individual project agreements.
