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Posted on September 21, 2017
Tallahassee Reports has learned that a proposed development located in downtown Tallahassee at 227 S. Calhoun Street is seeking a $9.6 million refund of post-construction property tax from the downtown Community Redevelopment Agency (CRA).
At the July 19th CRA Board meeting staff was directed not to bring any additional large-scale Downtown District projects to the Board until there was a decision on the continuance of the DT District. The Leon County Commission recently voted to begin the process of pulling out of the downtown Community Redevelopment Agency which has become entangled with the local FBI investigation of public corruption.
However, the CRA staff wrote in the latest meeting agenda that “because of the scale of this potential project, staff is seeking direction from the Board as to whether or not staff should move forward with discussing the Washington Square Tallahassee proposal and request for financial assistance with the Developer.”
The proposed project will encompass 1.33 acres of the southern half of the block bounded by East College to the north, S. Gadsden Street to the east, E. Jefferson Street to the south, and S. Calhoun Street to the west.
The property was acquired by the Washington Square Partnership from the Ausley & McMullen law firm on January 5, 2007. There were changes in the partnership structure in December 2010 and October 2015, and the property is now owned by Fairmont Investment, LLC.
The most recent project update shows that the development will consist of a 260 room full service hotel, 15-18,000 square feet of meeting space, approximately 70,000 square feet of office space, 60,000 square feet of residential condominiums, a 400 space parking garage, and 3 restaurants.
The estimated project cost is $90 million with a post construction taxable value of $60 million. Based on the CRA staff analysis, it would take until FY 2039 for the tax increment from the Project to generate $9.6 million in tax increment from the improved taxable value of the project.
The CRA will consider the project at the September 25th CRA meeting.