Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Project Timing topic
No spam. Unsubscribe anytime.
Board weighs penalties and proof-of-funding to keep TIF projects moving
Summary
Fort Myers commissioners discussed reducing rebates for project delays and a graduated incentive tied to milestones. Counsel warned penalties tied to executive-order-extended deadlines may be illegal; commissioners proposed requiring proof-of-funding letters to ensure projects can proceed.
Commissioners discussed tools to discourage delays on projects that have received TIF awards, including a graduated award system that increases the rebate percentage as developers complete milestones and the idea of withholding or reducing awards if target dates are missed.
Attorney Clifford Shepherd cautioned that penalties applied while governor-issued emergency orders are tolling deadlines could be legally problematic: “If you're going to impose some sort of a penalty ... that was extended by executive order, then that is probably going to be seen...as a bridge too far legally.” Instead, Shepherd recommended mechanisms akin to liquidated-damages schedules that exclude delays covered by executive orders. Several commissioners proposed operational fixes, including requiring proof of funds or a bank commitment letter before awarding TIF so the board is not committing funds to projects lacking financing. One commissioner summarized the approach as: require evidence developers can start now and "earn your way to the max" by meeting milestones.
The board asked staff to amend the application to require proof-of-funding documentation and to bring revised application language and milestone-based rebate options to a future CRA meeting.
