Title
Action to Approve a Developer Agreement for TIF #8
Body
Summary:
Action to approve a Developer Agreement between the City of Brookings and P.E.M. Affordable Housing, LLC., for Tax Increment Financing District #8.
Background:
P.E.M. Affordable Housing, LLC. requested Tax Increment Financing assistance for the development of 42 affordable workforce residential lots in the Timberline Addition. Tax Increment Financing District #8 is a partnership between Developer and the City of Brookings as a portion of the eligible expenses are the responsibility of the Developer and the City intends to utilize a portion of the tax increment to construction West 16th Avenue, associated drainage improvements, and any trail(s) and greenspace deemed necessary.
The City Council adopted Guidelines for the Use of Tax Increment Finance on January 13, 2009. Two items in the Developer Agreement waiver from the TIF Guidelines policy.
* Discretionary formula - The TIF Guidelines state applicants agree to waive their right to the discretionary formula. The Developer Agreement if approved, would allow the discretionary formula on platted lots until such time as the lots are sold or upon reaching the 5th year after platting in which the discretionary formula would no longer apply. Developers automatically receive the discretionary formula when platting five (5) or more lots at a time. The discretionary formula is a 20%, 40%, 60%, 80%, 100% formula. Waiving the policy provides the developer with the opportunity to expedite the development process by platting more lots for the market to absorb while maintaining carrying costs associated with property taxes.
* City responsible for advertising for competitive bids - The TIF Guidelines require the City to advertise for competitive bids for construction projects utilizing TIF assistance. The Developer Agreement is proposing to allow the Developer's consulting engineer, Banner Associates, to handle the competitive bidding process f...
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