We have an economic development group locally that has identified a city owned area for a possible housing development. The infrastructure will be just under $1 million, with the cost being recouped through TIF. The city would also receive approximately $38,000 per lot (24 lots total) to help offset costs. Mathematically, it seems like the development would almost entirely pay for the infrastructure costs via the lot revenue (24*38,000=$912,000), but of course some of these lots may not sell for 5-10 years or more, and may not sell for the proposed price point. The TIF would allow the city to re-caputure the debt costs over time, but again, a certain number of houses would have to be built in a certain time frame to make sure this happens. Assuming the right number of lots sells initially to repay the bond, does this seems like a reasonable development? I've asked the city manager if we can create a set aside fund for the development to put a percentage of money away to pay for ongoing maintenance/replacement over the next 40-60 years, but he's not sure if it's possible. I'd love any feedback/thoughts.
Where am I?
In Strong Towns you can ask and answer questions and share your experience with others!