08-13-09 Planning Comm. Agenda - Laserfiche WebLink

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MEMORANDUM TO: Mayor Blesener and Members of the City Council FROM: Joel Hanson, City Administrator DATE: July 17, 2009 RE: Adoption of TIF llistrict 6-1 (2966 Arcade/Masterpiece Homes) Attached is the proposed Tax Increment Financing Plan for the establishment of Development District #6 and TIF Dish•ict 6-1. As you know, the City entered into an agreement with Masterpiece Homes, Inc. to assist with the financing of the acquisition of the property at 2966 Arcade Street that was being sold on a foreclosure auction (a copy is attached for your review). The City provided 50% of the cost of acquiring the site at a cost of approximately $219,000. We entered into a Development Agreement with Masterpiece Homes to document our relationship and layout the steps that would be taken to redevelop the site, subject to economic conditions. One of those steps was to create a TIP District to provide us the ability to ensure a quality development and to protect our investment in the property while enabling the developer to invest in the project. Ideally, economic conditions will improve in the future to enable the development to occur without subsidy. However, should that not be possible, the TIF District will enable the developer and the City to remain whole. Also attached is a resolution adopting the Development Program a<~d establishing TIF District 6-1. This program is compliant with our Comprehensive Plan, but we still need the planning commission to comment on the program. Staff recommends adoption of the Development Program and creation of TIF District 6-1 as presented and subject to ratification by the Planning Commission.