Housing and Redevelopment Authority March 27, 2025

Wednesday, March 26, 2025

Economic development and financing restructuring for 70th and France project

Proposal to move forward with office site development at 70th and France

Discussion of tax-exempt financing and credit backing by the City/HRA

Potential use of Special Purpose Entity for development

Mitigation strategies for financial risk to the city

Conceptual shift from pay-as-you-go TIF notes to bonded debt models

Areas of Interest (5)

City HRA debates shifting from developer-risk TIF models to city-backed bond structures to save stalled high-profile development at 70th and France.
Concerns mount over increased municipal risk as HRA contemplates backing private development with full faith and credit of the city.
Developers claim current market conditions, including high interest rates and inflation, render original 2022 development agreements for 70th and France unworkable.
Proposal floated to treat city-owned parking structures as public utilities to secure tax-exempt interest rates for private developers.
Long-term financial exposure: HRA members question future budget impact of owning and maintaining a massive parking garage at 70th and France.

Votes (2)

Approve the meeting agenda as published

CarriedUnanimous

Moved by Mr. Jackson · Seconded by Commissioner Agnu

Adopt items on the consent agenda

CarriedUnanimous

Moved by Mr. Jackson · Seconded by Commissioner Pierce

Notable Quotes (3)

If we go with an alternative structure as we're discussing here today that Tiff note goes away but the same Tiff dollars that are coming in the door would go out the door to pay for the bond.
— Bill Nondorf

Financing structureClarifying the shift from TIF notes to bond repayment.

In order for us to make this project happen we need to be able to decouple the financing between the two sites.
— Ted Carlson

Project developmentExplanation of developer strategy to move forward independently on parcels.

It feels to me based on what you said that we as a city would be assuming more risk in this.
— Commissioner Agnu

Financial riskRaising concern over the change in city financial exposure.

People (5)

Scott NeilExecutive Director / City Manager

Coordinates the meeting and facilitates discussions.

Bill NondorfEconomic Development Director

Leads the presentation on the 70th and France development financing restructuring.

Ted CarlsonRepresentative

From Orion Investments, explains the need to decouple site financing.

1 quote

“in order for us to make this project happen we need to have need to be able to decouple the financing between the two sites”

Justification for moving away from combined project financing.

Nick An-HutConsultant

From ERS, advises on financial modeling and economic feasibility.

Chair HubandChair

Presides over the HRA meeting.

Places Mentioned

70th and France7250 France (Craftsman office site)Centennial Lake

Events & Meetings (1)

January 7, 2025 - 7:30 a.m. ATA Housing and Redevelopment Authority Meeting

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