Germantown is on the brink of significant economic development with the proposed “The Standard” mixed-use project, which aims to revitalize the former Carrefour shopping center. The project is awaiting approval for a Tax Increment Financing (TIF) application from the Industrial Development Board (IDB), scheduled for review on December 3, 2023.
The first phase of The Standard has already introduced a new commercial space that will feature the upscale dining establishment, Josephine Estelle. Looking ahead, Phase II plans to construct 320 apartments along with additional commercial spaces and a parking structure. The developer, CRE Devco Germantown, LLC, is seeking a 20-year TIF, which would allocate 75% of new property tax revenue to enhance public infrastructure, including roads and utilities. Construction is projected to commence in April 2026.
The IDB received the TIF application last month, which underwent initial scrutiny by the board’s Application Review Subcommittee. Following the subcommittee’s approval, the application was forwarded for comprehensive evaluation by the IDB. During the upcoming meeting on December 3, the board will assess the application, determine if further analysis is required, establish a timeline for a public hearing, and facilitate public comments.
Understanding TIF is essential for Germantown residents. This financing method captures the new property taxes generated by a development while maintaining the existing tax base. TIFs are primarily utilized to fund public infrastructure improvements in areas undergoing development. To qualify for a TIF, projects must meet the “but for” test, indicating that the development would not proceed at the same scale without the financial support.
Following the IDB meeting, the process will advance to a financial review by the board. A public hearing is scheduled for January 13, 2024, at 18:00 to gather community feedback on the project. After this hearing, the IDB will cast a vote on the TIF proposal, which will then be presented to the Board of Mayor and Aldermen (BMA) for further review. If the BMA approves the decision, a formal agreement will be established between the developer and the IDB, leading to the implementation of the TIF.
The city has committed to providing ongoing updates and opportunities for public input throughout this process, aiming to foster community engagement and transparency as Germantown embarks on this transformative development journey.
