The Watertown City Council officially approved during its May 12 meeting a previously discussed amendment to the TIF District relating to the downtown senior living center.
The amendment will allow both the city and the developer full access to increment generated by the project that otherwise would have been lost due to project delays. When the city council first passed the development agreement in December, it did so with the belief that the TIF Note needed to have a fixed start and end date.
Because the original TIF district linked the collection schedule to the assumed collection start date of 2012, but the project has not yet commenced, both the city and developer stood to lose as many as three to four years of increment.
The new amendment adds language that will base the start and end of the district on when the first increment is collected, allowing both parties to capitalize on the full length of the 25-year district. If the project commences in 2013, it will provide the developer with two additional years of its portion of increment, which is $20,000 per year. The amendment does not change the overall cost to the city, but rather, redefines when the city collects its increment.
The City Council previously discussed the amendment on March 22, but the issue had first include a public hearing before it could be passed.
In other business, the city council approved seal coating projects for this year in three areas. The projects, designed to extend the life of the city’s streets, will include Tuscany Village, Kings Meadows and Newton Avenue.
The total cost of the projects this year is expected to be just under $33,000, less than half of the city’s anticipated costs of $70,000. The projects were scaled back so as to have more cash on hand to address other street maintenance needs that may arise.
Contact Matt Bunke at email@example.com