College Station may decide on TIF in May

[aggie0083]

http://www.theeagle.com/stories/042306/local_20060423001.php

College Station may decide on TIF in May

By APRIL AVISON

Eagle Staff Writer

The College Station City Council could decide next month whether to establish a tax increment finance district in Northgate that would partially fund a planned hotel-convention center.

City Manager Glenn Brown said the boundaries of the potential district are Wellborn Road, South College Avenue, University Drive and the Bryan city limits.

If the district, also known as a TIF, is approved by the City Council at its May 25 meeting, College Station can issue debt to build its part of the hotel-convention center. Then the city can pay off the debt with property taxes generated on new development within that district.

Several months ago, city officials projected it would cost about $25 million to build a 90,000-square-foot convention center with a ballroom, exhibit hall and meeting space.

A developer would be responsible for building the adjacent 10-story hotel. The entire project would cost more than $62 million, officials have estimated.

City officials said Friday they aren't sure how much debt would be issued. If the zone is established, an advisory board will be appointed to recommend what projects are constructed and how much money is spent. The City Council has ultimate approval over the plans.

"The number that's been talked about is $25 million, but I don't think we would issue that much in actual debt," said Charles Wood, interim economic development director. "The TIF will not pay all the debt service. There are other sources of revenue, like hotel/motel taxes."

The City Council voted in December to begin negotiations on the project, but it appears not much progress has been made since then. The lead negotiator on the project was Kim Foutz, College Station's former economic development director, who was asked by Brown in February to resign.

Brown has said that Foutz was asked to leave because of her job performance. She reached an undisclosed settlement agreement with the city and has accepted a job in Temple. Brown said Friday the hotel-convention center project has not suffered because of Foutz's departure.

Although the project is moving at a slow pace, Brown said negotiations with developer Drake Leddy are ongoing. The project is planned for an area between Nagle Street and College Avenue owned by the Culpepper family.

"The city is committed to getting a hotel-convention center in the Northgate area," Brown said. "If something doesn't work out with the Culpepper land, we'll look at other locations. We still have discussions going on. This is probably one of the most difficult things that any city tries to negotiate."

Leddy is the third developer who has attempted to work with College Station on a hotel-convention center since 1995.

Plans for a $6 million project in the Wolf Pen Creek area fell through in 1997 when the developer could not meet his financial obligations. Another agreement in eastern College Station fell through in 2003 when the developer, TAC Realty, withdrew because construction costs for the hotel exceeded a spending cap of $38 million.

Wood said more than 400 pages of documents have to be generated and signed before such a deal can be finalized.

"Public-private partnerships in general are difficult to put together," he said.

Jessica Guidry, a consultant with Planning and Land Use Solutions, said some of the property owners in Northgate have indicated they would like the city to establish a TIF district.

"I think a TIF in Northgate would be appropriate with or without a conference center," Guidry said. "There's a Northgate revitalization plan that has identified some things that need to be funded. It includes everything from bathrooms to sidewalks to safety measures like lighting. Northgate really needs more parking. It's almost time to start talking about another parking garage."

City staff also has recommended that a TIF zone be formed for infrastructure improvements in Northgate even if the hotel-convention center plan falls through, Wood said. College Station has one other tax increment finance district, in the Wolf Pen Creek area.

[Scotch]

That line was surprising. Building in other areas of Northgate would require buying up smaller properties to form an area large enough for the convention center. The Tradition and Gameday did this, but Gameday didn't need that much land on the ground and The Tradition was able to get most of their needed space by buying church property.

This will be interesting how this plays out. Strike three wouldn't make the convention center out, but it wouldn't be good.

[aggie0083]

The parking lot at College Main and Church Ave would be a good location for them. That would be across the street from the NG parking garage, and closer to the more "urban" part of Northgate.

I still can't believe they are hinting at this failing for a third time...

[CDeb]

http://www.theeagle.com/stories/062206/local_20060622005.php

Voting on it today.....

[mrfootball]

Interesting. Looks a lot like what they're doing in Lubbock (across the street from the TTU campus) except that the Overton redevelopment and the planned Hotel/Convention center are funded privately.

http://www.houstonarchitecture.info/haif/i...?showtopic=6288