21 - RESIDENTIAL DEVELOPMENT PROPOSALItem No. 21
memorandum
TO: Mayor & City Council
FROM: John Godwin, City Manager
SUBJECT: RESIDENTIAL DEVELOPMENT PROPOSAL
DATE: May 11, 2017
BACKGROUND: GVD Construction proposes to build a 130+ apartment complex on Ruby
Way. They have developed preliminary drawings and are in the plating process. They propose to
construct higher quality apartments with no state or federal subsidies, so are looking for local incentives
instead to make their project financially viable. They have successfully received ad valorem abatements
in two other cities.
STATUS OF ISSUE: Gene Dixon, company owner and manager, initially requested a five -year
100% tax abatement, as well as reduced or no development fees. In response I developed a
memorandum of understand covering mutually agreed upon deal points. These include property
tax abatements in decreasing amounts, reduced fees, and a series of quality standards the
developer would be required to meet.
BUDGET: No out -of- pocket costs to city, but short-term potential revenues would be reduced.
RECOMMENDATION: Approve deal points, with modifications as required, and instruct city
attorney to prepare and mayor to execute a development agreement with approved points.