More pieces of the puzzle for a much-discussed and controversial mixed-use project along Rainbow Boulevard in Westwood fell into place last week.
The Westwood City Council on Thursday approved the creation of a tax increment financing district along Rainbow Boulevard. The district would allow for a portion of tax revenues generated from a development to pay for a new city park on the 8-acre site between 50th and 51st streets.
The city council’s action comes after the Karbank Holdings LLC proposed to remake the site cleared a planning commission hurdle earlier this month.
The plan — which calls for 106,000 square feet of office and retail and a 3.8-acre park — has come under scrutiny by residents who think it doesn’t belong in Westwood, especially on what they see as the city’s last remaining block of green space.
The city anticipates capturing a portion of property tax revenues generated within the newly formed TIF district to pay for the park project, and possibly a portion of sales tax revenues.
City officials have been clear that if this private project moves forward, then any TIF dollars would go toward the development of the new public park in Westwood. Under the current proposal, developers won’t get any incentives to complete the project.
While high-level talks about building a new and bigger city park have already begun, the city has yet to consider any specific project plans within the new TIF district. Additionally, the city is under no obligation to use this TIF district for the park or any specific public project.
Further action is needed to actually generate TIF dollars
- The city council voted 5-0 to create a 8.72-acre TIF district as a “conservation area,” one of the uses for TIF under state law. The geographic footprint of the TIF district makes up less than 15% of the city and is occupied by structures that are dilapidated.
- The former Westwood View Elementary building that sits on the site — which is currently being used for Rushton Elementary students this year as their new school gets built — is “dilapidated and obsolete” due to the need for a new roof and HVAC system replacement, according to city documents.
- In order for any TIF dollars to go to the city, Westwood must approve a TIF project plan at a later time.
- Any TIF dollars connected to this specific Karbank Holdings project proposal will go toward the park and not to the office or retail buildings, Mayor David Waters previously noted.
- The city council also got a first look at three separate agreements related to the Karbank project ahead of the final vote next month.
The city council calls out accusations of corruption
- Council President Jeff Harris said people who have good faith questions would “do well” to distance themselves from those who made accusations of corruption with no evidence and insulted volunteers, elected officials and city staff.
- “Those folks aren’t helping your argument, they’re hurting your argument,” Harris said.
- Mayor Waters echoed Harris’ comments, urging anyone who questioned his financial integrity to check public records about his employment, his children’s college savings and his finances.
- Councilmember Jason Hannaman said he respects that some people dislike the path the city is on right now, but the alternatives residents gave on Sept. 11 — primarily to remake the entire 8-acre site into a park — have already been evaluated and discussed.
- Considering the city has spent years evaluating its needs and is aware the school district wants to sell the former Westwood View building, Hannaman said he sees two viable options for the land.
- “Those are: Some way for the city to acquire it, or to do nothing and let somebody else buy it,” Hannaman said.
Next steps:
- On Oct. 2, the planning commission will discuss the final development plan for the Rainbow Boulevard project.
- The final decision on all parts of the project will be made by the city council at the Oct. 12 meeting.
Go deeper: Read the city’s timeline for next steps online here.
