City staff detail downtown TIF priorities, parking-garage concerns and special assessment process

City economic-development staff and Chief Engineer Jeff Davis presented an overview of the downtown Tax Increment Financing (TIF) district at the June 3 budget workshop and outlined how the city proposes to use the funds going forward.

Davis explained that a TIF captures added value from new development inside the district and reinvests that value in the district. He said a recent change in state statute expanded allowable uses to include arts and entertainment, and the proposed budget includes funds for a cultural assessment and to expand the cultural commission’s grant program so more projects can be supported.

Staff also described capital priorities for the downtown area: sidewalk replacements and pedestrian safety work, downtown traffic-signal electrical upgrades, the Kosby retaining-wall design-build procurement to address a rapidly failing section of infrastructure, waterfront projects such as dog-pool replacement and monument restoration, and parking-square garage maintenance. Davis noted the downtown garage — built in the 1980s and exposed to salt — currently requires frequent maintenance and that a capital-plan consultant (Thomas Eddie) is studying long-term alternatives and timing. Councilors asked whether the current approach is delayable or whether replacement or relocation will eventually be required; staff said the study will inform long-term options.

Davis also said the city is monitoring a potential Department of Transportation (DOT) beautification project on Main Street and seeks to coordinate sewer and stormwater work with DOT and the water district to avoid duplicative construction and advance CSO-reduction goals.

On a separate but related item, staff explained the downtown special-assessment district is governed by a different statute than a TIF: a special assessment applies an added fee to existing property value and requires its own public-hearing process. Staff said the public hearing on the assessment district will be held at the next council meeting on June 8. During the workshop staff also noted a corrected $30,000 spreadsheet omission in the TIF materials and confirmed the online budget sheet reflects the corrected amount.

Next steps: staff will return with results from the cultural assessment if funded, proceed with the retaining-wall RFP and design-build procurement, and present the special-assessment district for a public hearing on the June 8 council agenda.