Committee approves development agreement for mixed-use project at former Kmart site

The Finance & Personnel Committee voted to forward a development agreement for a three-phase mixed-use redevelopment at the former Kmart site, 2415 State Road. Staff and the developer described the project scope, TIF request and commitments for affordable units.

Julie Emsley explained the project would include 214 apartments, 33 townhomes, about 163 garage and 136 surface parking stalls, 25,000 square feet of commercial space and approximately 3,000 square feet of community/amenity space. She told the committee public utility improvements for the site are estimated to cost up to $1,000,000 and that the term sheet — reviewed and recommended by ECDC — reflected those needs. Emsley said the developers agreed to commit 12 units to the Pathways program with rent controls for a 10-year period.

Council members asked about financing structure and why the development was organized into four LLCs; the developer representative explained the parcel-by-parcel LLC structure facilitates stand-alone financing for each parcel. Committee members discussed compliance oversight and the sequence of steps after council approval; Emsley said the city will execute the development agreement, monitor compliance against timelines and conditions, and use compliance mechanisms if requirements are not met. The committee adopted the agreement and will forward it to council for final action.