New development agreement for Woodside Village in Westwood would alter public financing component for next phase

The north phase of the project is nearing completion and the first restaurant opened today. Many apartments are now occupied.
The north phase of the project is nearing completion and the first restaurant opened today. Many apartments are now occupied.

A new amendment to the Woodside Village development agreement will go before the Westwood City Council for a public hearing at 7 p.m. Oct. 13.

The amendment makes four changes in the agreement with the project developers: it increases the public financing cap for the south phase of the project; it changes the deadlines for the south phase; it creates a new .9 percent Community Improvement District (CID) on the Woodside Club property only; and it agrees to release the land under the south phase to the developer prior to the completion of the club renovations.

The potential for a modified agreement on the south phase of the project, which will be for the property on the south side of 47th Place, had raised questions from some residents earlier in the year.

In a letter to residents this week, Westwood Mayor John Yé said it was important for everyone to review the documents before coming to a judgment about the changes. The city has provided a full copy of the development agreement and an FAQ page explaining the changes from the current development agreement. The current agreement was approved in 2013.

The current plan caps the public financing portion – money that comes from a CID or TIF (Tax Increment Financing) at $22 million with more than $11 million earmarked for the south phase. The developer has said costs for the south phase have increased by more than $16 million and site work costs have increased more than $3 million since the plan was approved. The new agreement adds $6 million to the cap on the south phase.

The project has three phases: the current residential and retail component that is nearing completion on the north side, the renovations and expansion to the Woodside Club, and the south phase that has had plan approval and also contains residential and retail. Already in place was a TIF for the property and a 1.1 percent CID. The new CID means the combined additional sales tax will be 2 percent on taxable sales at the club. It does not change the plan in place for other retail.

The city owns the land upon which the south phase will be built. The new amendment would transfer the land from the city to the developer earlier than anticipated so it could be used to secure financing for the club improvements and the south phase. The city can take the land back if the south phase is not completed.

The full FAQ can be found here.
The details of the TIF plan can be found here.
The redevelopment agreement and amendments can be found here.