Title
Transformational Incentive Program Changes (B)
Explanation:
At the April 18, 2005 meeting the CRA directed staff to explore options to restructure the Transformational Incentive Program in the following ways: 1) Provide for a 50% incentive cap on the program; 2) Create a differential for those districts redeveloping more slowly; 3) Address public safety, infrastructure and land assembly issues; 4) Recommend changes to the Points system; and 5) Provide a timeline for the changes.
Based on the significant investment made by several projects currently underway staff recommends a compromise where the first complete eligible application submitted by noon on December 29, 2005 in each district be given grants under the current 80% program. Second applications received regardless of date would be under the modified program.
Staff has been working with the City's Finance Department to provide an overview of the financial impact the change to a 50% cap would have on the developers. A chart showing those calculations is attached. Based on the direction given at last month's meeting staff recommends the following changes to the Transformational Projects Incentive program. These items are outlined in the attached backup.
1. Provide for a 50% incentive cap on the program- Staff is recommending that several items be changed to meet this goal including clarification that the incentives are based on the "but for" test with the given percentage over 15 years serving as a cap; the removal of the additional 10% for projects receiving over 50+ points; the removal of the 19-24 point category; and the removal of the decreasing percentage formula.
2. Create a differential for those districts redeveloping more - Staff is recommending that the CRA offer three Transformational Grants per district in the Downtown and College Park University Heights districts with the first complete eligible application submitted by noon on December 29, 2005 be given a grant ...
Click here for full text