DATE: August 3, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator
SUBJECT:
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Discussion Regarding Harpeth Square Development Parking Financing
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning a request from Harpeth Square to create a tax-increment financing district in downtown Franklin.
Background
Harpeth Square is preparing to develop the downtown are located between Main Street, First Avenue North, Bridge Street and Second Avenue North. Within the plans for residential, retail and hotel facilities, a parking garage is proposed. Approximately one-third of the spaces in the parking garage would be designated for public parking. Because of the availability of additional public parking in the downtown area, the developer has requested that the City and County consider establishment of a tax-increment financing district to assist in financing the garage.
Under state law, an industrial development board may establish an economic development district in which new property taxes from a project may be used to finance certain improvements or infrastructure. A parking garage is one of the purposes for which such a district is legally permitted. The proposal from Harpeth Square is to apply a portion of the new taxes resulting from the development to the debt service for construction and equipping of a 500+ space parking garage.
Financial Impact
The estimate of new taxes that would be diverted to the parking garage debt service is approximately $48,000 per year for the City and $238,000 for the County. Harpeth Square initially requested a 10 year term, but has since modified this to a 15 year term. The term would begin within three years of the start of construction. There is an understanding that the County would not apply any taxes that were to be dedicated to edu...
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