FAQs: Frequently Asked Questions
Why would the City increase the Public Financing Cap and give the developer more incentive?
If approved by the City Council, the City would be agreeing to additional incentive funding to recognize the developer's increase in costs, enable the developer to pursue an improved project and to insure completion of both the Club Phase and the South Phase.
The City's negotiating team has fought to minimize the City's participation in these increased costs. The City is not considering sharing 50% of the increased costs – any additional incentive would represent less than 1/3rd of the increased project costs. Also, when the City's negotiating team evaluated the overall budget for the project with the newly increased costs and the increased incentive that is being considered – the public incentive-to-private money ratio is actually going down (which is positive from the City's perspective).
In other words, the original project budget for all three phases was estimated to be approximately $63M, of which $22M could be reimbursed with public incentive money – a 35% public/private money ratio.
The new proposal is for an overall project budget in excess of $105M, with up to $28M in public incentives available for reimbursement of eligible costs – a 26% public/private money ratio. If the City approves the new CID money discussed in detail below, the result is a 29% public/private money ratio.