Developers planning 1,887 homes on the banks of the Brazos River are now asking the city for $130 million in TIF funding, up from a previous estimate of $93 million.
During a public meeting at noon Friday in the third floor conference room at City Hall, 300 Austin Ave., the Tax Increment Financing Zone No. 4 board will consider the request by the Caldwell Companies, a Houston-based real estate firm planning the development. According to the agenda, the money would fund construction of infrastructure needed for the development, including water, wastewater, sewer, drainage and public parks infrastructure.
WATCH NOW: See the location of the 521-acre site
Caldwell would fund the project initially and receive the $130 million through TIF reimbursements based on tax generation following the completion of the project. The money would be reimbursed from 2037 through 2052.
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The current total estimate for the TIF payments is $102 million, but a proposed master development agreement between Caldwell and the city conditionally allows for another 20% to account for inflation and another 6% in general contingency, said Jeremy Pesina, the city’s interim director of economic development.
“We decided to take the maximum amount to the TIF board to ensure clarity,” Pesina said by email.
He said the up to $130 million would be paid back to Caldwell out of the “tax increment” created by the project, meaning the money would be reimbursed after the increased taxes have been paid. He also said the total estimated time for the completion of the project is 20 years.
According to the TIF funding request, the projected start date for the project is Dec. 31. Pesina said the project funding requires an amendment to the TIF 4 Project and Financing Plan, meaning it will require two public hearings before final approval by the Waco City Council.
During a meeting April 2, Caldwell representatives presented the plan for the Riverway development to the city council. City Manager Bradley Ford said during the meeting that the current taxable value of Caldwell’s 521-acre property, which runs east from Martin Luther King Jr. Boulevard between the Brazos River and Lake Shore Drive, is $527,000. The market value of the property would be $617 million following the completion of the development, according to estimates from Caldwell.
In addition to housing, Caldwell plans to build public parks, walking trails, a marina and commercial and retail spaces at the edge of the development. During the April 2 meeting, city council members were enthusiastic about the potential development due to the added housing it would bring about two miles from downtown.
WATCH NOW: Presentation, discussion on 521-acre Riverway site along Brazos with plans for 1,887 homes at April 2, 2024 Waco City Council meeting
Home designs shown in the request and presentation to the council are similar to home designs used in some of Caldwell’s other master planned community projects in the Houston area. Home prices in one of Caldwell’s communities in Cypress, Towne Lake, ranged from $400,000 to $1.1 million.
Pesina said subsidized affordable housing is not included in Caldwell’s plans for the development.
Caldwell also plans to create a municipal management district for the development, a type of political subdivision that can levy taxes and issue bonds to supplement municipal services provided by the city.
“At the developer’s expense, a MMD will be created that will serve two main functions 1) act as the primary financing tool for the public infrastructure including water, sewer, drainage, and roads and related improvements, and 2) provide supplemental community services and improvements, ensure the continued quality and value of the Project, and provide long term maintenance and operation services for the public facilities located within the boundaries of the MMD that are not dedicated to the City (specifically, streets and drainage),” according to Caldwell’s TIF funding application. “The MMD will assess a property tax on real property located within the boundaries of the Project to be used for both maintenance and operations and for the debt service component of public financing.’
