The Pella City Council will discuss a conditional resolution of support for possible tax increment financing for a commercial development project following regular business Tuesday.

Council will review a proposal from Pella Main Street Market, LLC, to finance economic development grants to construct the grocery store and cafe similar to the Gateway Market in Des Moines. A zoning change ordinance to a planned unit development was approved and adopted in May for 503 Main Street.

The property is part of a blighted area, which makes it eligible for additional funding to cover the cost of the approximately $5 million project. The developer is requesting 15 years of TIF rebates, or up to $1.775 million.

According to a City Staff Memo to council, even with tax increment financing funneling a portion of funds back to the developer, the new Pella Main Street Market development is projected to be a net annual increase of $13,000 in property tax revenue for all three taxing entities.

If approved, the developer would be required to construct the market by December of 2022–adhering to all standards recently approved in the Planned Unit Development, while also agreeing to a minimum tax assessment of $4 million and operating at minimum eight hours daily for six days a week.

The Pella City Council will not take formal action on the conditional resolution of support until the Tuesday, July 6th meeting.

The discussion will take place following regular business Tuesday at 6 p.m. in the Pella Public Safety Complex, which can also be viewed electronically: https://join.me/CityofPella