The council in February conditionally approved a 95 percent tax increment finance rebate not to exceed $1.26 million over a decade. Frantz-Hobart would need to prove it has paid taxes in order for the taxes to be rebated. This rebate would leave the city with $19,000 in property taxes annually.
Rather than an upfront cash incentive, the city will provide a “backstop” cash incentive to be used only if the development was not rented at 100 percent. The city would be responsible for up to six units for 10 years at $800 per month per unit. The maximum risk for the city in providing the backstop would be $576,000 over the course of a decade.
These incentives will not officially be approved until Frantz-Hobart has purchased the building and cannot be approved until the urban renewal plan for the area that encompasses the Wilson Building is amended. On June 11, the council set a public hearing to amend the central business area urban renewal district to include the Wilson Building.
Following the public hearing, the amendment will come before the council on July 9 for adoption.