0:00Central to the meeting was the exploration of TIF as a financial mechanism to facilitate the redevelopment of the eight-acre Macy’s site. The current Macy’s Furniture Store is slated for relocation, creating an opportunity for new development. The economic development manager outlined the financial challenges, noting a $23 million funding gap that TIF could potentially cover. The redevelopment project’s total cost is projected to be just under $300 million, with TIF covering approximately 7.7% of this, aligning with common practices to keep TIF under 10% of total costs.

A significant portion of the discussion focused on the potential consequences if TIF were not utilized. The development team stressed that without TIF, the project would struggle to proceed as planned. They acknowledged that simplifying the project by reducing the number of phases or merging buildings could lower construction costs, but this might also lead to design compromises, such as eliminating an underpass connection that currently complicates the site layout.

34:00The sustainability requirements also introduce additional costs, with $1.2 million identified for compliance with city policies, including solar installations.

0:00The meeting also broached the broader implications of TIF on the city’s tax structure. Concerns were voiced regarding the potential impact on future tax levies, with some raising the possibility that TIF could strain the city’s general fund in the short term, despite long-term community benefits. Historical precedent was cited, comparing the Macy’s project to previous successful developments that utilized TIF, such as the transformation of a site at 50th and France.

51:48In addition, the discussion highlighted the need for a decision, driven by a January 10 deadline for the purchase agreement on the Macy’s site. This urgency prompted suggestions for alternative site plans that could simplify the project, making it more feasible under constrained financial circumstances.

The authority expressed a desire for transparency in the project’s financial and logistical elements, advocating for a collaborative approach among city officials, developers, and the community to reach a consensus.