Council removes residential parcel from Merriam TIF and approves IRB resolution for Grand Station redevelopment

The council considered two linked redevelopment actions for the Merriam Grand Station Marketplace (Serrano Apartments project). Brian Dyer, the city's community development director, explained that the residential portion must be removed from the I-35 Redevelopment TIF district so the developer can receive a 10-year property-tax abatement; doing so would leave the parking structure inside the TIF so it remains eligible for reimbursement of allowable vertical construction costs.

"What the IRBs provide to the project is, 1st of all, provides a sales tax exemption for construction materials for the project, then also provides for the residential portion a 10 year property tax abatement for the residential portion," Dyer said. He emphasized the city is not responsible for principal or interest on the IRBs.

Council members voted to waive the first reading and adopt the ordinance removing the residential portion from the TIF district (motion passed 8-0). The council also approved a resolution of intent to issue federally taxable private-activity Industrial Revenue Bonds for the commercial portion of the development in a principal amount not to exceed $14,100,000 (motion passed 8-0). Staff said the actual bond issuance ordinance will return to council later in the process.

Why it matters: Removing property from the TIF and approving an NOI for IRBs are steps that structure tax incentives for the developer and affect how construction materials and property taxes are treated; those incentives alter the project's fiscal profile and public costs and benefits.