The Board of Estimates met Monday, but deferred discussion regarding the Edgewater Hotel project finances.
The committee was planning to discuss a $16 million Tax Incremental Finance loan that would assist the redevelopment project.
However, the topic had to be postponed because the Board did not have the signed TIF agreement, according to Ald. Bridget Maniaci, District 2.
The agreement involves the project developer and is reviewed by the TIF policy coordinator and city attorney's office, Maniaci said. It must be tended to at the same time as the land use agreement.
""If one is not ready, then we don't take up the other,"" Maniaci said.
As the financial committee, the Board of Estimates handles all city expenditures and TIF details.
Ald. Bryon Eagon, District 8, said there have been some misconceptions about what TIF is.
""It's not a one-way check [to the developer, Hammes Co.]. It's an investment that encourages growth and development that will return its larger tax increment to the city in higher property taxes,"" Eagon said.
The Edgewater Hotel would generate additional property tax money to pay $6 million, while taxes from other properties, such as those on State Street and University Square, would pay the other $10 million, according to Ald. Mike Verveer, District 4.
Once the Edgewater is built, the higher property tax votes on places like University Square would be enough to cover the Edgewater costs, Verveer said.
Under the proposal by Mayor Dave Cieslewicz, Hammes Co. would receive an $8 million payment this year and $8 million in 2011. The increased property taxes, above what the Edgewater already pays, would in part pay money back over several years, in addition to the other TIF district properties, Verveer said.
The delay in monetary decisions regarding the Edgewater project may affect the tentative Feb. 23 Common Council vote on the development.
""Our goal was to incorporate the TIF, the zoning, the design [for Feb. 23]… for a clear decision on the project as a whole,"" Eagon said.
