Council approves development deal for Giese School site, allocates TID funds for infrastructure and down-payment assistance

The Common Council approved a development agreement on Aug. 5 authorizing the mayor and city clerk to enter into an agreement with the Community Development Authority and Newman Companies LLC for redevelopment of the Giese School property at 5120 Byrd Avenue. The project anticipates about 34 single-family homes and includes a fiscal plan using TID and infrastructure funds: about $2.3 million for roads and utilities, $1.7 million for down-payment assistance (approximately $50,000 per lot for eligible buyers) and $300,000 for stormwater infrastructure.

Alder Land described the proposal as an opportunity to create homes and attract city and RUSD employees into the city. Finance staff explained the intergovernmental (IG) revenue stream from a sewer-sharing agreement is limited and must be conserved for long-term obligations; the finance director said the project plan approved by council anticipates using TID 31 and project plan funding. Alder Weidner strongly objected, arguing that the proposal diverts TID funds away from existing district residents who were promised repair and renovation aid and that the down-payment assistance primarily benefits city and school employees rather than homeowners in TID 31.

After debate the council approved the agreement (11 ayes, 1 no); the council recorded concerns about oversight and asked staff to preserve homeowner grant programs in TID 31. The agreement includes specified infrastructure spending lines and a provision to reserve the homeowner repair grants before infrastructure draws.