Tempe OKS controversial lake plan

Changes to financing blueprint shift costs of new dam to public

The Tempe City Council voted Tuesday to revise the city’s Town Lake financing plan to offer greater incentives for developers.

The plan was unanimously approved despite a small window for public review and little opportunity for public comment on changes that would shift millions of dollars in lake costs to taxpayers.

Early Tuesday, Tempe resident Ron Tapscott, a member of a city neighborhood association, sent Mayor Mark Mitchell and the council an e-mail pleading on behalf of taxpayers for a delay on the vote.

“I strongly encourage you to postpone a decision on this matter until it has been discussed and considered with commu- nity input,” Tapscott said.

Mitchell had earlier pushed to postpone a vote and allow input from taxpayers and businesses.

“This is something that’s important,” he said. “We’re going to have plenty of opportunity for (public) engagement.”

But Tuesday, Mitchell shifted his position and voted with the rest of the council to approve the changes.

The mayor asked Tempe Finance Manager Ken Jones to clarify the plan and note that it would not directly increase residents’ taxes nor delay improvements to community parks.

Jones contended the developer incentives were “clarifications” to the lake finance plan.

City finance officials have said the revised plan would give developers a financial break on their share of costs tied to the man-made lake and make private development more affordable. The goal is to advance Tempe’s plans to secure sufficient lakeshore private development to ease the hefty public costs of maintaining Town Lake, finance officials said.

While the plan was pushed as a solu- tion to spur development that slowed as a result of the the Great Recession, the incentives for developers would come as the Tempe and national economy are improving.

Today, Tempe and state leaders were scheduled to attend a celebration in Tempe to mark the beginning of construction on Marina Heights, a $600 million project touted as the state’s largest office development.

Developers unveiled renderings of the 2 million-square-foot project that city leaders have boasted would drive Town Lake commercial and residential development.

Town Lake critics say that taxpayers have long carried the financial burden for private lake development, and the new plan offers no guarantee that economic breaks for developers would actually spur construction.

The revised plan would shift the burden of paying for a new west-end lake dam, which the city has estimated will cost at least $37.4 million, to Tempe taxpayers, freeing developers from sharing the expense of replacing the dam.

Developers would pay a lower annual “holding fee,” which they typically begin paying when they build on their lake property.

The financing proposal also includes lowering the annual interest rate that developers must pay over the 25 years that they are allowed to pay back their share of lake construction.

Tapscott counted himself among the many Tempe residents who have endured community-service cuts. Under the revised lake-financing plan “substantial costs will be shifted to Tempe residents,” he wrote to council members.

Some Tempe residents have criticized the city for shifting millions of dollars to the Town Lake dam costs from spending that was approved by voters in a past bond election for community parks.

“The Alta Mira (Goodwin Park) neighborhood has diligently worked to improve our park, acknowledging the effects of a restricted city budget,” Tapscott wrote. “We sacrificed hours of master planning and hopeful expectation to accommodate the loss of city revenues from the economic recession.”