Getting your Trinity Audio player ready...

The City of LaGrange has called for public hearings to hear comments from citizens about a potential new Tax Allocation District (TAD) in the downtown area as well as requested changes to the current Mill Creek Station TAD.

On Oct. 22, the Redevelopment Authority of LaGrange unanimously recommended the creation of the South Bull Street District TAD. The district would be TAD #7 for the city and potentially help create a second downtown hotel, retail/office space, housing and parking to support the amenities downtown.

Plans for the development would create apartments in the downtown area and retail space underneath, as well as potentially another downtown hotel.

The proposed development is projected to include: 100 Hotel rooms, 595 residential units, 34,500 square feet of retail space and 15,000 SF of office space.

The developers are seeking a pay-as-you-go where they would receive a refund on the increased taxes on as the property value goes up, which would be used to repay financing for the project over 20 years.

The group estimates that at the conclusion of the TAD, the taxable assessed property will have grown by $81.4 million.

“The general goal of what they want to do is just to bring residents downtown,” City Manager Patrick Bowie said. “I think we all agree that having people in the downtown area is good for the businesses downtown and keeps your downtown vibrant. That’s a big part of why the council is in favor.”

The way the TAD works is the city would reimburse the developers the increased taxes that would be collected from the area due to the improvement. The money would help pay for the parking decks and support infrastructure downtown, Bowie said.

The Redevelopment Authority also recommended changes to the Mill Creek Station TAD off of Davis Road, otherwise known as TAD #2.

The developer requested an extension of the TAD as well as permission to deviate from the original plan and swap some residential areas within the TAD for commercial.

Bowie said the TAD was set to expire in 2025 and the change will extend it through 2049. He said the TAD does include a “sunset provision,” which they are adding to all new TADs now.

“If you don’t start within a certain amount of time, then the TAD would expire,” Bowie said.

The city council called for public hearings on both TADs for Nov. 12.