Chris Giesen, EDA coordinator, detailed the request from Main Street Properties LLP (partners Mark Welch and Mike Sogla) for assistance through redevelopment tax increment financing (TIF) at the city council’s August 14 meeting. Councilor Mike Urban was absent.
The former apartment building located on Grand St. was destroyed by a fire in November 2022. The damaged structure has since been demolished, and the site was cleaned up earlier this year. The owner wants to rebuild a larger apartment complex consisting of 14 units with a mix of one- and two-bedroom units.
The owner’s request for TIF assistance for redevelopment of the property is due to additional costs associated with site improvements including demolition, clean-up, site prep, larger utility service connections, and additional parking area. The total cost of the project is estimated to be $1.8 million. The total TIF assistance package will provide $410,000 plus interest over 20 years.
Mike Bubany, David Drown Associates, explained the reimbursement to the developer of tax increments for up to $410,000 for eligible site improvements will be in a pay as you go format with 5% simple interest. The financial assistance from the city will make this redevelopment project feasible. The increase in the estimated market value due to the proposed development is $1,755,800.
During the public hearing there were no comments from the public. Welch was present to answer any questions. Councilor Josh Broadwater asked about the parking lot. Welch said it will be connected. A resolution to authorize the establishment of TIF District No. 3-6 within Municipal Development District No. 3 was approved. The Development Agreement between the city and the developer was then approved as recommended by staff.
Other business in brief
• The Enterprise Drive Rebate Program which would have expired this month was extended for two more years with some modifications. The extension was recommended by Public Works Committee and EDA. The program was established to encourage commercial building construction and sale of the lots along Enterprise Dr.
• Pay application # 2 from Pearson Backhoe Service in the amount of $5,855 was approved. Craig Britton said the Bench St. Drainage Improvement Project and restoration has been completed. This was the final payment for the project; the total project cost was $98,313.50.
• Pay application #1 from Griffin Construction in the amount of $190,034.92 was approved for work completed on the 2023 Street Improvement Project (Prospect St. SE). Work completed to this point includes the removal of bituminous pavement, installation of sanitary sewer, water main and services on Prospect St. SE.
• Brian Burkholder asked the council to add a sixth Public Works position and to eliminate the summer help position. The new position would be for general maintenance working in all areas of public works. The creation of the new position was approved as recommended by the Personnel Committee.
• A resolution was adopted accepting a $2,000 donation from Chatfield Youth Sports to benefit the Frisbee Golf Course.
• The city council’s next meeting will be held on August 28.