CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Conduct the public hearing and direct staff to prepare ordinances approving the Block 59 Business District Plan and setting an associated Business District tax of one percent
body
DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: William J. Novack, Director of TED/City Engineer
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Brixmor Properties owns both the Westridge Court and Heritage Square shopping centers and has been assessing major changes to the sites. The current plan seeks to remove many of the existing buildings and re-orient the site with a central public green space surrounded by outlots along Route 59 and Aurora Avenue. This will require complete removal and relocation of the infrastructure that serves these centers.
On September 20, 2022 the City Council adopted a resolution expressing the City's intent to consider the designation of a Business District, impose a Business District tax, and induce development interest for the Westridge Court and Heritage Square properties.
On December 20, 2022 the City Council passed an ordinance scheduling the public hearing to consider the establishment of the Block 59 Business District. As required by state statute, the Notice of The Public Hearing was published in the newspaper. Attached is the certificate from the Tribune Media Group confirming the notice was published on January 1, 2023 and January 4, 2023. Also attached is a copy of the draft Business District plan.
DISCUSSION:
Several questions have been raised regarding this proposed Business District.
First, regarding the financial amount of the request. When Brixmor initially proposed this project in 2021the estimated revenue needed from the business district was $15 to $16 million net present value at a 6% discount rate. The projected total amount to be collected when considered the time value of money was projected to be approximately $20 million. Brixmor has revised and ...
Click here for full text