The Hayward City Council on Monday approved a developer’s agreement with Jeremy Hill of Hill Construction for the use of tax incremental finance (TIF) funds to develop a proposed $6 million apartment complex.
Hill had requested the developer’s agreement to help acquire financing for the proposed eight-building, 64-unit apartment complex he wants to build on a parcel located south of Hospital Road and north of Highway 27-77.
In the agreement, the city places the current estimated fair market value of the land at $122,000 and allows for 70 percent of the property taxes generated from the improvements to be returned to Hill over the next 15 years or until water and sewer installation costs are covered.
Hill estimated the $6 million project would generate more than $80,000 in property taxes. He asked for the TIF dollars to help pay for extending utilities to the project along a quarter mile of roadway.
Last October the council approved the creation of Tax Incremental District 5 where the apartment complex would be located. It allows the city to use TIF dollars to encourage development.
In other action, the council:
Approved a canopy agreement for 10556 Main Street for the Lynn Marie’s Candies store to create more site appeal.
Approved use of the fire hall and placement of fire trucks for the wedding ceremony of Fire Chief Mike Herrmann, and closure of Third Street in the afternoon of July 13. There were concerns about setting a precedent of using the fire hall in this manner and about liability. As a condition of the agreement, only fire department members are allowed to operate vehicles. Another concern about who would respond if there were a fire call was addressed when Herrmann said members attending the wedding would respond, including himself and his future bride.
Approved hiring Greg Schultz, a master plumber who has worked on city sewer and water projects, as a limited term employee to oversee the sewer and water work on the Highway 27 project starting this month. The Department of Transportation (DOT) and the Department of Natural Resources (DNR) require an individual to oversee the work because of the scope of the project.
Approved hiring Ayres Associates to prepare an application of a Community Development Block Grant (CDBG) for city improvements that matches every city dollar with two federal dollars up to $1 million of federal dollars for a total of $1.5 million. Possible improvement projects include Second Street, Main Street and a sewer project. Public Works Director John McCue said the application is for a $2 to $1 match when usually the match is $1 to $1. May 17 is the submission deadline.
An April participation hearing will be needed to allow public input on possible projects. Approved projects must have community wide benefit for low- and moderate-income people constituting 68 percent of the city’s population.
Approved engaging Ayres Associations for up to $15,000 to study options to reduce nitrogen outflows at the wastewater treatment plant. One option is covering the ponds to raise temperatures to process more nitrogen. The DNR is requiring the city to look at options even though the nitrogen level has been slowly declining over the years, McCue said.
Approved paying Haas Sons Inc. $49,000 in funds held back on the Second Street project pending a three-year warranty letter from the company. There remains $10,000 held back awaiting any problems that become visible this spring.
Approved the purchase of a Boss V-Plow from Naylor’s Auto Repair for $3,400, including $2,700 trade-in for the old plow.
Approved a 10-year contract with KLM Engineering Inc. for water tower inspection. The city is required to inspect the inside of tanks every five years. The contract will lock in the price for 10 years, including yearly visual inspections.
Approved hiring Crane Engineering to replace air relief values on the force main line to the wastewater treatment plant. The problem is seven manholes designed to remove air do not work and as a result the pumps have to work harder because they are pushing air bubbles. Crane was also hired to inspect lift station pumps for one year.
The city accepted a $10,000 grant from DNR for tree inventory. The city match will be $5,000 budgeted for tree trimming. The DNR will inventory the trees and give the city a plan.
The city also agreed to allow an owner of a home purchased by the Federal Emergency Management Agency in the Smith Creek flood plain until March 31 to remove items from the home, which will be removed. The owner was supposed to have items removed by March 1. Concerns were raised the city might be held liable if flooding occurred, so the city allowed the extension until March 31 on the condition the owner does not hold the city liable.