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2 <br />grocery store, which sets up the entire area. There is still a question of whether the increment <br />from the store would cover the improvements to the area. It’s undecided whether it would be a <br />“pay-as-you-go” where the developer is reimbursed from the taxes generated, versus city <br />developed improvements that are paid back through TIF. Infrastructure is the major impediment, <br />so it’s a choice to use the tools temporarily available or wait for a number of years. Mr. Tucci <br />stated that there is a value to the right of way that would be dedicated with this project. Mr. <br />Stranik questioned why size was an issue. Mr. Grochala said the look, bulk, and intensity of use <br />has been an issue. The original master plan calls for approximately 70,000 sq. ft. of uses on the <br />west side of Hodgson. The grocery has been reduced 10,000 sq. ft. from when Oppidan started. <br />Virtual reality imaging may need to be used to show the scope of development. <br /> <br />Ms. Divine asked about jobs created. Mr. Tucci said it creates about 130, with 20% full time. <br />This will likely be a union grocery store. Mr. Tucci said a $7 million project could bring <br />approximately $50,000 in city taxes after it is on the tax rolls. <br /> <br />Mr. Stranik proposed a recommendation adding that EDAC should specifically add TIF as a <br />consideration. The recommendation read as follows: <br /> <br />EDAC has reviewed the Concept Plan submitted by Oppidan for the grocery store on Hodgson <br />Road/County Road. J. EDAC recommends that the City Council move this project forward to <br />application based on the following: <br /> <br />1. A grocery store is a permitted use on the site <br />2. The 49/J intersection is a gateway to the city. Costs of municipal services and road <br />improvements have made development of the area prohibitive. <br />3. An anchor tenant on 49/J is needed in order to bring municipal services to the area and <br />improve the 49/J intersection <br />4. An anchor tenant on 49/J is necessary to kick start further development/redevelopment <br />of the 49/J intersection area <br />5. A grocery store will provide needed tax base and jobs <br />6. The developer has responded to neighborhood concerns in a reasonable manner <br />7. EDAC encourages use of the economic development tool (TIF) that is temporarily <br />available to the city to assist with the costs of municipal services and road <br />improvements. This opportunity will no longer be available by July 2012. <br /> <br />Mr. Salzman said that the city is asking the taxpayers to be a cosigner because of bonds that will <br />be issued. It’s financially challenging, and the city should learn from the Legacy project. If the <br />developer and the city don’t have the money, it’s not a time to speculate. Mr. Grochala <br />responded that the issue with the Legacy project was not TIF, it was special assessments not <br />being paid. The scope of the improvements for this grocery project will likely make it a city- <br />installed project. It will be an assessment project with improvement bonds, TIF bonds, or <br />revenue bonds, but because of the charter, the city probably won’t be able to levy assessments <br />until other landowners develop. There would be a dual track, where TIF would provide interim <br />financing, but when other landowners do develop, they would pay connection charges. The scope <br />of this project will include buying some additional right of way, which would happen regardless <br />if improvements are to occur.