Columbus has approved a resolution changing specifics in its Central Economic Development area, and is moving forward with plans to create a separate TIF district to fund a multifamily urban grocer development.
The Columbus Redevelopment Commission has committed to contribute “land, cash and a bond to be valued at some $11.8 million” to the multifamily urban grocer project, which is estimated to cost about $40 million. City officials have said in the past that the development’s property tax dollars will go to repay the bond. The developer, Flaherty & Collins, will pay about 70% of the project cost.
Redevelopment Director Heather Pope said that after the city council’s approval, the matter will return to the redevelopment commission for a confirmatory resolution to create the separate TIF district, along with a public hearing.
The item will be on the agenda for the next regular meeting on May 17, she said.
“We will notify the underlying taxing units and the remonstrance period will start on May 6,” she added.
The resolution on TIF amendments was unanimously approved by the six council members present, including Jerone Wood, who had previously voted against approving the commission’s project agreement with Flaherty & Collins. At the time, Wood expressed concern about the strain this new development could put on other apartment complexes. Councilwoman Grace Kestler was absent Tuesday and therefore did not vote.
Wood is not the only city official to express concerns about the project. Prior to coming to city council, the TIF amendments were considered by the Columbus Plan Commission. While the commission unanimously approved the changes, some of its members questioned the viability of the project and potential occupancy rates for the approximately 200 market-rate apartments that are planned.
However, other city leaders are more optimistic on the matter. At Tuesday’s meeting, councilman Tom Dell thanked those involved with the project and expressed his support for the development.
“This is an exciting time,” he said. “Within five years, you’ll look down the downtown area, and it’ll be transformed into a beautiful area with plenty of people living and the downtown grocer and activity beyond our wildest dreams.”
The city is working with August Mack Environmental on environmental mitigation in order to provide Flaherty & Collins with a clean site, Pope said.
This includes a soil management plan for the former location of Bob’s Car Wash, where now-removed underground storage tanks contaminated some of the soil. Pope said that the contamination may mean that the tanks leaked or were removed improperly.
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The city will notify underlying taxing units, and a remonstrance period on the TIF begins on May 6.
The Columbus Redevelopment Commission will consider a declaratory resolution creating the separate TIF district and have a public hearing on the matter at its May 17 meeting, which is scheduled for 4 p.m.
City meetings can be livestreamed at columbus.in.gov/video/live-streaming/.
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The multifamily urban grocer development downtown being planned by the city will include approximately 200 market rate apartments and a 12,000-15,000 square foot urban grocer facility. There may also be some retail space in the development.
The multifamily urban grocer development started out as part of a larger joint project. Originally, when the city was considering developers for its hotel conference center project, companies were told that they could get “bonus points” if they brought a multifamily urban grocer partner to the city as well.
For the hotel conference center development, the city chose Sprague Hotel Developers, who partnered with Flaherty & Collins (with the latter company providing the multifamily urban grocer piece).
However, because of the pandemic, the multifamily urban grocer project and the city’s plans for a hotel conference center were later split off into two separate projects, rather than taking place simultaneously.
Sprague Hotel Developers put the hotel conference center project on hold in July of 2020 until the hospitality industry recovers from the impact of the pandemic.
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