The Pella City Council approved a conditional resolution of support for tax increment financing for a commercial development project Tuesday.

Council received a proposal from Pella Main Street Market, LLC, to finance economic development grants to construct the grocery store and café 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.

City Administrator Mike Nardini says 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.

Nardini says 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.

To receive the support, the developer is 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.