CC PACKET 11122002 - Laserfiche WebLink

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• Several factors to be considered during the evaluation of this proposed development program include: 1. Because of the project size and costs it is recommended and anticipated that the project would be "phased". 2. The developer was encouraged to prepare an option for the first phase that would not require significant financial assistance in addition to tax increment. This would increase the probability of the project being constructed. 3. A major emphasis has been placed on developing a concept that is market and financially feasible. There have been some changes in the general development market place since the initial developer selection. Those changes include some improvement in the retail marketplace. This would enable the developer to increase the amount of retail space under limited circumstances. Increased retail capacity for this site substantially improves the financial feasibility of the project. To capture the increased market capacity it will be necessary to attract a major retail anchor(80,000 s.f.+) to the site. According to retail experts, the retail anchor would attract additional smaller retail tenants. 4. Without an additional major retail tenant, the total retail space is likely to be limited to 50,000 s.f. or less. With a major retail tenant the total space could increase to • 200,000 s.f. This change would increase the financial feasibility of the project because of higher land payments for the retail space. 5. It is important to note that the proposed'concepts prepared by the developer are different than the initial concepts reviewed during the planning process and at developer selection. This is an expected outcome during the pre-development planning phase. These differences are the result of changes in market, financial and planning considerations. The initial planning process anticipated that there would be changes during the development process and provided that the initial concept should be considered a framework for the final plan and not the final plan. 6. The proposed development program prepared by Pratt-Ordway is consistent with the initial framework accepted by the City. The financial information presented by the developer would indicate that phase one of the project could be developed without the need for assistance in addition to tax increment. 7. Obviously, no commitment to provide tax increment has been made to the developer at this time. However, it is likely that some assistance would be needed. If the City does elect to provide assistance it is recommended that the developer be permitted to use all or a portion of the increment to pay for the public improvements required for the development. This could be accomplished by assessing the developer for the public improvement cost. This would increase the "efficiency" of the tax increment by reducing the effective interest rate for the increment revenues. • 8. The second phase of the.proposed development would require assistance beyond tax increment. It is more likely that this additional assistance would be available if the Ehlers &Associates— November 6, 2002