Economic development staff laid out changes to a proposed downtown redevelopment deal and asked the City Council to consider a local building-code amendment to accommodate smaller apartment units.

Dave, presenting the redevelopment terms to the Committee of the Whole, said the city would reimburse property taxes during construction and that the developer would be reimbursed up to $1,200,000 plus interest over the life of the TIF increment. "First of all, that during the construction period, the property will be reimbursed the property taxes that it pays," he said. He added the $1.2 million cap is a reduction from an earlier $1,750,000 figure the developer had sought.

Council members and staff focused on a long-standing local amendment that requires a 900-square-foot minimum for apartment units. Dave said the project’s smallest units are proposed at 531 square feet and that "if I add all those units up that are under 900 square feet, that would represent 41% of the building." He and council members discussed using an average-unit approach so the city could lower the effective minimum without immediately allowing extremely small units to become the new baseline.

The proposal also includes a 1% building-permit fee (of project cost), a requested parking waiver, and a requested waiver of loading-dock requirements; staff said the developer would provide a curbside "kiss-and-ride" drop-off area at the developer’s expense as an alternative to an on-site loading dock.

On timing and preservation, Dave said the developer wants to fast-track permits and begin demolition and abatement over winter ‘‘at his risk’’ and that replacement windows would preserve the building’s historic window openings. Council asked for a detailed square-footage breakdown for each unit type and for legal staff to draft any amendment: Dave said he has "Michael Morris doing that."

Council members emphasized that any change should be limited to new construction or major remodels (for example, over a 50% threshold) and that existing units would be grandfathered under whatever standard remains in force. No ordinance was adopted at the meeting; staff recommended drafting an amendment for council review and legal scrutiny.

The council also discussed the likelihood of first-floor commercial tenants and asked staff to press the developer for commercial occupancy on the ground floor where feasible. Dave said market conditions may push developers toward "work-live" units if first-floor commercial demand cannot be secured.

The next procedural step is for staff to circulate the proposed code amendment language and the developer’s unit-by-unit square-footage breakdown to council members for feedback and for legal drafting to follow.