Powell City Council delayed a vote on a 308-unit senior apartment complex again last week after the developers requested more time to work on a proposed tax-increment financing agreement.
Powell City Council delayed a vote on a 308-unit senior apartment complex again last week after the developers requested more time to work on a proposedtax-increment financing agreement.
Margello Development Co. and Schottenstein Real Estate Group are planning a rental community with one-, two- and three-story buildings on 39 acres southeast of Sawmill Parkway's intersection with Seldom Seen Road.
Council on Dec. 1 unanimously approved a decision to table the vote on the project's final development plan.
Councilman Richard Cline said the developers and city officials had a "very lively" discussion about adding the site to a tax-increment financing district during council's Nov. 23 Finance Committee meeting. Cline said the developers asked for the Dec. 1 vote to be delayed so they could bring a more-detailed TIF proposal to the committee's meeting Tuesday, Dec. 8.
City spokeswoman Megan Canavan said council could vote on Powell Grand's final development plan and the TIF agreement during its meeting Tuesday, Dec. 15.
In a TIF district, property-tax revenue from improvements at a site is diverted to a fund that can pay for upgrades to the area's infrastructure.
A letter Friday, Dec. 4, from Gregory Stype, an attorney representing the developers, to city officials estimates the project would generate $221,000 in TIF revenue annually for 30 years.
Powell could issue bonds against the TIF revenue to pay for improvements to area bike paths, roads and sewer lines, as well as work on the nearby Park at Seldom Seen site.
The letter estimates the planned work on infrastructure and the park that can be funded through the TIF agreement at about $3.3 million. About $2.3 million would go to road and utility projects in the area, while the remaining $1 million would pay for a portion of the site work at the park.
The developer would be responsible for the road and utility work, while the city would be responsible for the work at the park.
Under the agreement, the developer would absorb the first $279,000 in costs. The next $2.2 million will be funded through monthly payments from the city to the developer after the city issues its bonds.
The final $775,000 would be reimbursed to the developer -- with interest -- from TIF payments after the city pays off its debt service for the bonds.
The agreement lists the possibility that 60 of the units could be removed from the TIF district and sold as condos. If that occurs, the developer might not receive reimbursement for the final $775,000 worth of work.
Although the development would be located in a tax-diverting district, the developers have said the project still would generate a significant amount of revenue for schools and emergency services. Canavan said the Olentangy Local School District and the Liberty Township Fire Department would be "made whole" in terms of revenue under the agreement.
According to the developers' letter to city officials, Powell Grand would generate an estimated $800,000 for Olentangy schools and the Delaware Area Career Center annually and $80,000 for fire and EMS services annually over the life of the TIF agreement.