Atlantic City Council to hold Public Hearing on Boulders agreement
June 14th, 2011 by Ric Hanson
Public hearings will be held during the Atlantic City Council meeting Wednesday evening, with regard to a proposed Development and Minimum Assessment Agreement between the City and Boulders Inn and Suites, and a proposed internal advance and loan to fund a $125,000 incentive grant for the company, to be funded through the City‘s Economic Development Fund.
City Administrator Doug Harris will report to the Council Wednesday, that negotiations have been completed, and the Finance Committee has reviewed the package. The Committee will recommend the Council approve both agreements, which have been signed by Boulders’ officials after more than a year’s delay.
Under the agreements, the City would provider Boulders’ developers with a $125,000 up-front grant, and a total of $41,000 in tax rebates, for a total incentive package of $166,000, which is $59,000 less than what was initially offered in May, 2010. Because the City had incurred additional legal costs associated with the agreement, the total price tag comes to $247,464, which is slightly less than what was offered last May, but the Tax Increment Financing savings to the City will be a little more than $48,000.
Harris says Boulders has agreed to a minimum taxable value, which protects the City against a potential State imposed commercial property assessment rollback, until 2022. The tax rebates, according to Harris, will be $41,000, spread over nine-years, rather than $100,000, spread over a period of four-years. He says the City will also capture the incremental increase in the value on the land, which had increased by over $60,000, due to its conversion from agricultural to commercial zoning.
Harris says the changes will enable the City to capture over half the TIF revenues generated from the project, which will enable Atlantic to fund much needed street improvements.
Following the public hearings, Wednesday, the City Council will act on resolutions approving the agreements and internal advance for the incentives package. Their meeting at City Hall, begins at 5:30-p.m.