(Atlantic) The Atlantic City Council approved a resolution authorizing a development agreement with Boose Building Construction, L.C., and an internal advance for funding an economic development grant.
Atlantic City Administrator John Lund says development agreements are standard features relating to economic development. He says a development agreement is necessary because the City is utilizing its American Rescue Plan resources and Tax Increment Financing to support the Redwood Subdivision Housing Project.
“The project is ahead of schedule,” stated Boose. “The sewer line installation is complete, water line installation will begin next week, and paving will start soon after that.”
Lund noted this is a simple agreement; since no external debt is issued, property taxpayers have zero risk of subsidizing this project. Lund added that Boose Building Construction is a local small business; they were the first ones out of the gate to tackle the City’s housing shortage.
Lund says Boose Construction assumed the risk of purchasing the land and had considerable expense. He says the City Council nor the Personnel and Finance Committee indicated additional requirements for this agreement which will act as the record of proof for the auditors that the City Council ordered the distribution of City funds to Boose Building Construction.
The City Council also approved an urban renewal plan amendment for the southeast urban renewal district. City Administrator John Lund pointed out in the City Council packet that the amendment would allow the City to recover housing development fund dollars through tax increment financing for the Redwood Subdivision without risking an increase in property taxes if the housing construction project is delayed. Additionally, it removes the risk to the City and relieves Boose Building Construction of the minimum assessment agreement where they would be responsible for paying the debt on the street.
Lund says the amendment also sets up the possibility of development for the Prairie Hills Addition, the property (41 acres) recently purchased by the City.
