Commission debates $1 million subsidy for Lincoln Point housing proposal

Commissioners heard a detailed presentation about the Lincoln Point housing proposal and a developer request for roughly $1,000,000 in subsidy to make the project feasible.

Nathan (presenting staff materials) summarized the pro forma: the construction portion (water main, sanitary sewer, storm and dirt work) was bid at about $1,900,000 and the total development cost including fees and contingency was roughly $2,700,000. He said, "They are asking for, in some fashion, 1000000 dollar subsidy, to underwrite some of that cost to bring the development cost down to 1.7," and described options including an upfront cash subsidy, using TIF bonds, or a per‑unit rebate. Staff also ran revenue scenarios that showed cumulative incremental tax revenue rising toward $1,000,000 by year 10 under conservative assumptions.

Commissioners pressed on structure, oversight and fairness. The chair said he would not move forward without consulting the mayor about water and sewer operations and emphasized that any subsidy should be tied to public infrastructure rather than a direct rebate for homebuyers: "I wouldn't feel comfortable going forward without at least... talking to the mayor, since they're gonna be the ones that'll be running the water and sewer," he said. Several commissioners said $1,000,000 out of a $2.7M project was a large share to subsidize and urged consideration of formulas to share upside if the project significantly outperformed return assumptions.

Staff also outlined an alternative: remove the parcel from the existing commercial TIF and create a residential TIF (a new base year) that would allow reimbursement for infrastructure costs and run for a new 25‑year life. Commissioners asked staff to confirm legal permissibility and costs; staff said setup costs would be "a few thousand dollars" and the base‑year process could be completed this year if approved. The commission did not take a formal vote on a subsidy; the matter was left with direction to staff to confirm TIF legality, invite developer Kevin Biggs back to the September meeting, and continue discussions.