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Westwood continues public hearing on Woodside Village financing, anticipating amended development agreement

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Construction is well under way on the Woodside Village project on the north side of 47th Place.
Construction was well under way on the Woodside Village project on the north side of 47th Place in January.

The Westwood City Council Thursday continued a public hearing on a new Tax Increment Financing project plan for the Woodside Village development until more information from the developer can be processed and a companion amendment to the development agreement for the property finalized.

The north phase of the project already is under construction and a second phase for south of 47th Place has received its final site plan approval. The original financing for the project was approved in 2011. The TIF incentives include use of available increment increases in property tax and 40 percent of the city’s current one-cent sales tax. A Community Improvement District also would place an additional 1.1 percent sales tax on retailers in the development that could be directed toward financing.

Chase Simmons, attorney for developer Blair Tanner, said the construction costs for the south phase have increased by 80 percent on the southside and doubled for the renovations to the health and tennis club since the approvals five years ago. The north phase is fully financed, Simmons said.

Westwood City Attorney Ryan Denk said the project costs on the southside have increased from $35.2 million to $61.3 million. The original agreement capped public financing at $22 million for the entire project. The public financing is supported by the use of the TIF and CID revenues. The city is not liable for bonds in case of a default. A final proposal on changes in the financing are expected from the developer in the next month.

Westwood resident Jim Orr made several objections to the plan, saying he doesn’t believe it is appropriate for the city to “pick winners and losers.” He cited the Walmart market and Lulu’s restaurant as improvements that did not receive economic support.

The council also set the start of the CID for July 1. The TIF start also will be reset on the south phase. That portion of the project is not slated to start until 2017 and then will take 20 months of construction.

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