City staff introduced an amendment to Tax Incremental Financing District 7 (Summit Place) and a related project area for TIF District 21 (South 90 Second West Greenfield) for council discussion. Staff described proposed budget changes that would use surplus increment in TIF 7 to address debt service in other districts and to create redevelopment and housing funds.

Patrick, a staff presenter, said TIF 7 currently has surplus increment and staff recommended donating some of that surplus to TIF 6 and TIF 13 to close out those districts. "We have around $6,000,000 surplus in that TIF currently," Patrick said, and staff recommended using the surplus to pay debt service for TIF 6, which he described as having about $1,200,000 in debt service. Patrick outlined other recommended set-asides that appear in the draft amendment: $880,000 to purchase a former Mordecai site, about $1,000,000 set aside for economic development to help retrofit office space and attract tenants, and $500,000 for Maker's Row and tenant build-out assistance. He said TIF 7 produces about $1,200,000 a year in increment and that closing/redistributing the surplus could remove future debt liabilities for other districts.

Patrick also recommended using a state-authorized option to extend the capture of increment for up to one year after closing a TIF so the city could create an affordable housing fund from the final increment. "We would actually recommend that as that is one of the advantages of the state law," he said. Staff noted the timeline for the amendment: the item was introduced for discussion at the current meeting, a resolution was scheduled for consideration on Oct. 21, and a review board meeting was set for Nov. 10 to consider the final action.

Council members asked questions and offered supportive remarks about including affordable housing and façade grant funding within a half-mile of the project areas. One council member said, "I think all the items that got brought up are great and especially having that side for affordable housing." Staff also reported a $90,000,000 reduction in property valuation between 2023 and 2024 that affected several TIF valuations; they said early projections indicate some recovery in 2025.

Patrick described TIF 21 as a proposed district covering roughly 5.3 acres intended to support a development package that could include garden-style apartments and a mid-rise building in projects totaling roughly $40,000,000. He said the development agreement and any incentive package would return to the council and to the community development authority (CDA) for approval once negotiated.

No formal council action was taken; the item was introduced for discussion and will return for formal consideration under the scheduled timeline.