Urbandale, R&R add a ‘creative’ twist to tax increment financing
KENT DARR Nov 11, 2015 | 8:46 pm
1 min read time
264 wordsAll Latest News, Government Policy and Law, Real Estate and DevelopmentThe city of Urbandale has worked out a tax increment financing package with R&R Realty Group with a twist: Rather than rebate a portion of property taxes based on improvements to a property, those payments will be based on maintaining or boosting employment.
“It is unique,” said Steve Gaer, R&R’s general counsel and a man who has presided over a fair number of tax increment financing packages as mayor of West Des Moines.
Gaer said the company frequently is contacted by national employers who want to expand operations, and development packages often are the sweeteners that seal the move.
“It could make the difference between them wanting to expand here as opposed to another location,” he said.
R&R has no shortage of office space and land that can be developed for new office space. The agreement with the West Des Moines-based real estate company covers six related limited liability companies that include Paragon Office Park, home to Marsh & McLennan Cos. Inc. and Citigroup Inc., as well as a planned office and retail development called Highland Pointe.
“We have the buildings; we would like to put more people in them,” Gaer said.
A base employment level is part of ongoing discussions about the plan.
Under the agreement, the city will rebate a total of no more than $750,000 over six years, providing employment levels are maintained.
The Urbandale City Council set a public hearing for Nov. 24 to discuss the proposal.
“This is more of an experiment; we’re open to being creative within the boundaries of the law,” Urbandale City Manager A.J. Johnson said.
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