Discussion and Direction:  Possible development incentive in the amount of $2,500,000 to assist with the relocation of Soliere Avenue to support Vintage Partners, LLC's commercial development at I-40 and Country Club.

Provide direction to staff regarding a potential Development Incentive Agreement with Vintage Partners, LLC, including Council's interest in entering the agreement and, if so, guidance on what to seek in the agreement.

Council received a presentation on Vintage's request for a development tax incentive in September of 2016.  The incentive would use a portion (less than 50%) of the transaction privilege tax (TPT) generated by the development to reimburse the developer for costs associated with the relocation and improvement of Soliere Avenue up to $2,500,000. Staff, based on Council direction, ordered a third-party analysis of the potential incentive and has used that and other information to better understand the implications of the incentive.  That analysis shows that the City can anticipate recapturing more tax revenue than the amount of the incentive within 15 years.    

There has been City participation in economic development activities in a number of areas of town supporting a number of businesses and/or districts.  This incentive agreement would make possible the development of a grocery store and other commercial activities in currently undevelopable land along Soliere Avenue which can provide services to the area south of I-40.  The City's analysis (referenced above) acknowledges there will be cannibalization, but also shows that the City will gain more than $2,500,000 in new tax revenue within the first 15 years regardless of the level of cannibalization.