Main Street Market was approved for Tax Increment Financing at the Milford City Council’s March 5 meeting.
Market owners Craig and Karen Bontrager, along with the city’s TIF attorney Andrew Willis, spoke about the request to the Planning Commission and the Community Development Agency (the same officials who serve on the council) prior to the meeting.
Both entities recommended approval.
The Bontragers purchased the land formerly occupied by Subway Motors at 115 S. Highway 6.
They plan to build a new 9,800-square-foot market and general store on the land to expand their existing Main Street Market business.
Craig Bontrager estimated the total project cost at $1.1 million.
“The TIF financing is something that we need in order to make this happen,” he said.
The council approved using TIF on $131,500 of the project cost.
TIF allows a developer to complete a development project in a portion of the community that has been deemed blighted or substandard.
The goal is to improve the look, and ultimately the valuation, of the property.
The developer may then take up to 15 years to pay back the TIF amount through taxes, which are based on the increased valuation of the property between the start of the project and the end.
“If the assessed value comes in short, the owner must cover the difference,” Willis said. “If it comes in higher, the TIF note gets paid back sooner.”
After the 15 years, the property is taxed as usual.
Willis said the project fits within the city’s redevelopment plan. The store will offer 12 to 20 jobs in the community.
The council unanimously approved the financing, an amendment to the city’s redevelopment plan and an agreement with Main Street Market for the funds.
The council also awarded the project $35,000 in LB840 (Local Option Municipal Sales Tax) funds in December 2023.
