The Fremont City Council approved two TIF projects along Morningside Road during its meeting on Tuesday.
The council approved two redevelopment agreements within the Morningside Road Redevelopment Area that will both use Tax Incremental Financing (TIF).
The first project includes the construction of a new commercial center, parking lots, and other improvements in a series of up to six phases in the Morningside Road Redevelopment Area with an estimated assessed valuation of nearly $12 million. The project would utilize $2.083 million in TIF funding.
The project represents the commercial aspects of the Morningside Crossing mixed-use housing development located west of the U.S. 275 interchange along the north side of Morningside Road.
“The multi-family apartment area is not part of the redevelopment project, my client is not seeking Tax Increment Financing (TIF) for anything related to the apartments,” Tom Huston of Cline Williams Wright Johnson & Oldfather, representing developer Pure Properties, LLC, said. “The apartment project is proceeding on its own with TIF because of the need for housing in Fremont.”
Huston said that Morningside Commercial expects the overall project to include six phases, with the first phase consisting of a 5,000 square foot convenience store with an approximate valuation of $2.7 million that will support TIF of approximately 467,000. Construction on the convenience store is anticipated to be completed in January 2020.
The overall proposed improvements for which approximately $2.083 of TIF will be utilized include site acquisition, site preparation, architectural and engineering fees, public utility extension and installation, installation of streets and sidewalks, landscaping, façade enhancements, energy efficiency enhancements, and other improvements deemed feasible and necessary in support of the public health, safety and welfare, according to information included in the redevelopment plan.
The cost-benefit analysis is based on the project consisting of four commercial flex-buildings, a convenience store and fueling station, a retail strip center and single-tenant retail building and a self-storage facility.
The second project involves the construction of a 70,000 square foot warehouse in the Morningside Road Redevelopment Area with an estimated assessed valuation of $2 million. The project will utilize $360,000 in TIF funding.
The project is being developed by Western Integrated Seed and will be located on the east side of Luther Road north of Morningside Road within the South Fremont Business Park.
According to Huston, construction on the warehouse building is expected to commence almost immediately and continue over the next year or so. He estimated the total project cost at approximately $4 million.
“The building itself would include a seed treating area, packaging area and warehouse uses,” he said.
He added that the new Western Integrated Seed facility would employ approximately 5-7 employees per shift, with the company running three shifts.
“At full operation, the employment gain could be over 20 jobs,” he said.
The Morningside Road Redevelopment area was declared blighted and substandard, and the Morningside Business Park Redevelopment Plan was also approved, by the Fremont City Council in July 2014.