One University Place Approvals

At our City Council meeting tonight Council voted 4-1 (Quezada voting "no")  to approve the TIF Development Agreement which essentially approves the One University Place project. While this is nearly the culmination of 7 years work on planning this project, it is truly the beginning of the project itself. 

Unlike most times, tonight I had a prepared statement to make regarding the vote. However the way our discussion went, I never had a chance to deliver it. So here are my thoughts on why I voted to approve the TIF :

As I consider tonight’s vote I want to reflect the journey that has gotten us here. When I was first elected in 2009, my hope was the U-Heights would be a financially secure community that maintained its high quality of life. Approving this project, and the TIF that will make it happen is a major step toward realizing that goal.

What I think is important to remember here is that the City is not a part of the purchase process for this property. This development is located on private land owned by St. Andrew Church. Unlike River Landing in Coralville, or Plaza Towers in downtown Iowa City, we as a City do not own this site, we could not solicit bids and choose a developer from among competing projects.

Despite this, the residents of this community have molded this project over the past 7 years and their ideas have resulted in improvements and enhanced amenities. We will have commercial enterprises that will add to our community. We will have a community center, at an attractive price, where we can gather and celebrate. There will be playground space and attractive outdoor facilities. The ravine east of the project will be preserved in its current state. We will have an improved arterial intersection with better traffic flow than we have currently. Those traffic improvements will be paid by the project itself.

I don’t think anyone on council believes that Tax Increment Financing is to be given away lightly or surreptitiously. We have received advice from the National Development Council as to the need and amount of gap financing. Without a TIF, this project does not proceed.  While a gap of $4 million dollars, which results over time in a $6.7 million rebate payout is certainly not small, it is a reasonable amount, and the city will be able to repay without putting the city or its residents at a financial risk.

This TIF we are considering complies with the guidelines set forth by Peter Fisher of the Iowa Policy Institute for responsible use. Only taxes collected on property in this development will be used to rebate costs. Dr. Fisher advised not including the cost of a community center in the TIF because we shouldn’t TIF for non-tax generating space. We are following that recommendation.

Because I certainly know that tonight’s vote is not the end but the beginning of the next chapter in the future of U-Heights, and I know that approving this project will make us a financially secure community that maintains its high quality of life  I will be voting yes.

Here is the link to more information about the project. 

One University Place Information