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Council approves final documents on new development: Land valued at $63 million, store plot valued at $11 million
The Colony city officials held a special called meeting last week to approve final documents on the real estate appraisal, deed of sale, and the creation of a public improvement district for the Nebraska Furniture Mart site.
The land, which totals 439.12 acres, including the 433 acres of which is mixed-use development, has been appraised at $66 million. The 90-acre plot where the Nebraska Furniture Mart will sit has been valued at $11 million.
Tim Miller, assistant city manager for The Colony, said at last week's meeting that the city is in control and the owner of the land until the store is constructed. The land will then be turned back over to the developer and, at that point the land will not be in control of the city, although the city will be in control of the TIF that directs the development's incentives.
The public improvement development is an assessment that can be levied on the property in the event that sales or property tax collections do not meet the debt service payments for the improvements on the land, Miller said.
"The debt will be secured by sales tax revenues, but this will be an additional security so that the city and its corporations are protected financially and the entire burden of performance lies on the shoulders of the developer," he said. "For example, if the annual debt service payment is $10 million and the tax generated is only $9 million then the PID assessment is $1 million. Should the site generate 10 million and up then the assessment would be zero. This analysis will be done every year and will continue until the debt is satisfied."
The target date for having that debt paid off is 35 years, but the intention is to retire it sooner, Miller said. However, that will depend on the success of the development.