Pershing Center Redevelopment Process Timeline for
Developers Seeking Tax Increment Financing
As the City's Redevelopment Authority, the Urban Development Department will serve as a guide to the Developer through the redevelopment process, coordinating meetings with the Mayor and our Development Services Center representatives, fulfilling administrative and legislative requirements, and addressing questions and concerns along the way. During preliminary meetings the Developer and Urban Development will discuss basic concepts and components of the redevelopment project including uses, financing, design, and requested involvement of the City.
Urban Development can begin to estimate the TIF and other sources of funding that will be available for the project when an estimate of the project's value and/or construction expenses are provided.
The following is a step by step description of the expected Pershing Redevelopment Process, with the average length of time of each step.
Step One: Invitation for Redevelopment Proposals, Pershing Center Site
4 to 5 months
The Urban Development Department will advertise an Invitation for Redevelopment Proposals for the Pershing Center Site for approximately three months. Following the review of proposals, the City will interview selected developers and make its final selection.
Step Two: Amending the Redevelopment Plan
2 to 3 weeks
Urban Development prepares an amendment to the Redevelopment Plan to reflect the proposed reuse and/or redevelopment of the Pershing Site. This amendment establishes a project area from which tax increment financing (TIF) can be collected. While TIF is a financing tool used to alleviate slums and blight, it is also generally viewed as an economic development tool. However, the tool can only be used on projects that will generate property taxes.
Step Three: Administrative Review
The Planning Department coordinates the review of the plan amendment by various departments and sets the date for the plan amendment to be reviewed by the Lincoln-Lancaster County Planning Commission. The Planning Commission schedules a public hearing and votes on whether or not the plan amendment is in conformance with the Comprehensive Plan.
Step Four: Action on the Redevelopment Plan Amendment by City Council
The City Council schedules a public hearing and votes on creating the project area for the redevelopment project. By this point, the Urban Development Department has also prepared a cost/benefit analysis of the project that the Council reviews. The Developer makes a presentation to City Council on the project.
Step Five: Redevelopment Agreement
2 to 18 months
The developer and the City enter into negotiations to develop a legally binding redevelopment agreement. This step often occurs simultaneous to steps three and four. The redevelopment agreement identifies in detail what the developer will build, the estimated value of the new development, and the timing of the construction. The agreement also identifies in detail the extent of the City's assistance including the amount of TIF and the uses to which those funds will be put. The time spent on negotiating the agreement will greatly depend on both the complexity of the project and the readiness of the developer.
Other documents will be created supporting this agreement and may include an MOU to begin agreement negotiations, bond ordinance, CIP amendment resolution, parking agreements, maintenance agreements, etc. Additionally, other administrative or legislative activity may take place, including, but not limited to, vacations of rights-of-way, changes of zone, etc.
Step Six: Final Action by City Council
The redevelopment agreement and supporting documents are then submitted to City Council for action. Once the developer and the Mayor sign the redevelopment agreement, the agreement becomes a legally binding document, bonds can be sold, and implementation can get underway. Any work that begins before this point (e.g., demolition, site preparation, utility work) cannot be reimbursed with TIF funds.
At various times throughout this process, the developer will be meeting with the Development Service Center (including the Departments of Planning, Public Works, Building and Safety, and Health) as a group and with individual departments, including the Finance Department, as needed. Urban Development will assist the developer in setting up appropriate meetings between steps one and six.
Overall, a Developer that is ready with a plan and financing, has a responsive legal counsel, has experienced engineers and/or architects assisting with the project, and has clear and reasonable expectations about City involvement, can expect the process of obtaining a redevelopment agreement to take six to twelve months. Every project is different and the City has built some flexibility within the confines of the state law to assist developers in reducing time constraints.
Urban Development will also assist with project implementation, including the issuance of the TIF note through the Finance Department and Bond Council, plan review, pre-construction and construction meetings related to public improvements and traffic management, reimbursement of TIF-eligible expenses, and other assistance as needed.