IDA consultant says project costs rose sharply; financial analysis shows modest net public benefit and school impacts

During the March 11 meeting the IDA’s consultant, Grow America, reviewed the project’s cost-benefit analysis and said that economic conditions since 2018 have materially changed the project’s economics. Kevin Grams told the board the development budget is now roughly $250 million and that project costs have increased by about $50–70 million compared with earlier estimates; at one point he stated, “I was reminded that, the increase of the project cost is $70,000,000.”

Grams explained the proposed PILOT follows the same schedule authorized in 2018 with a deviation (a front-loaded abatement of 75% in years 1–2 then a phase-in) and said the analysis shows an average incremental tax increase of roughly $1.2 million per year over the 20-year schedule. He reported the development package totals were in the tens of millions (Grow America cited roughly $29,000,000 of IDA-related tax savings and attributed $43,000,000 of public-benefit value in fees and other measures across the 20-year period in the analysis presented to the board).

On schools, Grow America estimated the unit mix (mostly studios and one-bedrooms) would generate about 18 net new students; staff noted there is a five-year look-back and reconciliation process that allows the school district to request an audit and make a case for underpayment if appropriate. Board members asked for updated per-pupil cost inputs and for staff to coordinate directly with the school district to validate student-generation assumptions.