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EDA outlines financing review, look‑back protections and application fees
Summary
Staff described the review workflow for incentive requests — staff review, third‑party financial advisors (Ehlers), a pay‑as‑you‑go TIF approach and a five‑year look‑back provision; applicants would pay application fees and escrow for consultant costs.
Dan walked EDA members through the public financing principles that will govern how the city evaluates incentive requests. He said complete applications will be reviewed by staff and third‑party financial advisers such as Ehlers, who will recommend whether eligible costs and projected returns meet feasibility and compliance standards.
Dan described safeguards including a look‑back provision and pay‑as‑you‑go TIF payments rather than an upfront bond. "A look back provision allows you then to look back at that and say, Okay, are you performing as you intended?" he said, explaining that a call‑back can be used if a developer's actual performance materially exceeds the original pro forma. He also told members that application fees help offset consultant and legal costs: "typically an application fee is right around between $10,000 and $15,000 to start... the escrow that they initially started, about 10,000."
The policy will require demonstrable development capacity from applicants and allow staff to require demonstrated experience for projects of the proposed scope. Dan said those checks are intended to reduce risk to the city and protect public investment.
