Crocker Park, City, Schools Work Out Development Financing

The city of Westlake and Crocker Park developers are working out the details of a tax increment financing agreement .

“None of the details have been finalized,” said city Finance Director Prashant Shah. “We’re looking at a lot of drafts and there are a lot of people involved.”

Representatives and lawyers from the city, school board, Stark Enterprises and American Greetings are considering a proposal for a 30-year property tax exemption for the new development.

To assist in infrastructure construction, the city would issue non-tax revenue bonds in the area of $40 million for public infrastructure like streets, water lines and sewers, as well as parking decks.

“$40 million is a moving target,” Shah said. “That’s the maximum amount we would issue. The city will look at the breakdown and analysis of the construction value and then decide the issue.”

Developer Stark Enterprises is planning to put $3 million of infrastructure work into the expansion.

Under the tax increment financing agreement, Stark Enterprises would still pay property taxes, which the county gives to the city to pay down the debt issued for the development. The property tax will be used to pay down principle and interest on the bonds.

The school district would usually see about 55 to 60 percent of the property tax revenue from the new development, but instead would receive minimum payments from either the city or Crocker Park.

“It’s not decided who will pay the schools yet,” Shah said. “Typically, since the city is collecting the tax increment financing money, the city would end up paying the schools an amount they agree upon to make up for the loss from the tax abatement.”