On August 27, 2018, the Community Redevelopment Agency approved a Real Estate Development Accelerator (REDA) Pilot Program Agreement in which the New Avonlea PUD project would receive tax increment benefit to assist in the debt service that is required to fund the construction costs associated with the offsite infrastructure improvements being built as part of this project. The off-site infrastructure improvements include on-street parking, new roundabout, gateway features, sidewalk inter-connectivity, street landscaping, lighting, street furniture, crosswalks and neighborhood connectivity. In addition, the New Avonlea PUD will provide housing options and a mixed-use development in the CRA.
Pursuant to the REDA agreement, the offsite improvements were to be completed in two phases. Phase 1 improvements which include NE Baker Road and northern portion of Cardinal Avenue were to be completed by January 2020 and the 50% tax increment financing (TIF) revenue benefit was to be paid for 5 years based upon the increase in assessed value of the lots adjacent to Phase One. In addition, Phase 2 required all the off-site improvements on NW Green River Parkway, NE Dixie Hwy, southern portion of Cardinal Avenue and eastern portion of NE Baker Road to be completed by May 2022 or the TIF benefits for the lots adjacent to Phase Two would be void.
The REDA agreement is linked to the off-site infrastructure improvements plan in the New Avonlea PUD. The applicant of the New Avonlea PUD is requesting to amend the off-site improvements plan to clarify obligations of developer(s) with respect to offsite improvements related to parcels within the PUD and develop a more realistic plan for the proposed offsite improvements. The proposed amendment to the offsite improvements plan requires updating the adopted REDA agreement to be consistent with the off-site improvement plan in the PUD and updating the timeline to complete the off-site improvements.
The existing REDA agreement has TIF revenue distribution based on the two-phasing plan. However, the development pattern within the PUD has caused confusion related to the obligations of parcel owners. The Off-site Improvement Plan has been updated to eliminate phasing plan and instead, the applicant has provided a color-coded plan that demonstrates which tax parcel is financially responsible for the associated off-site improvements on the plan (see “Exhibit A”). The incentive payment will remain the same, which is 50% of TIF revenue generated from increase in assessed value of the tax parcel associated with off-site improvements for a period of five consecutive years. At the end of the five-year period, the tax parcel will be removed from the TIF calculation due to the Company.
The development schedule for each tax parcel will determine the time frame for off-site improvements. The CRA will not be obligated to make any TIF payments for any tax parcel after May 1, 2039.
During this time, if the City completes a portion of the off-site improvements as required in the approved off-site improvement plan, then the company will not receive any payments until the City has been reimbursed for its expenditure through TIF revenue.
At any time, the offsite improvements plan of the New Avonlea PUD is amended, the agreement binding the improvements will remain and require an amendment to the REDA agreement.
Community Redevelopment Board
On May 5, 2020, the Community Redevelopment Board approved amendment to the New Avonlea REDA Agreement, by a 6-0 vote with Board Member Frank Wacha abstaining.