During the redevelopment period (currently estimated to be 10 to 20 years), much of the taxes generated by the Mueller redevelopment will be used to pay off bonds used to finance infrastructure investments.
It is currently estimated that the City will receive roughly $10-15 million in taxes during the first 10 years, and $55-65 million during the first 20 years over and above what is required to pay for the bonds.
Once the infrastructure is complete, an increasing proportion of the taxes generated by the project will be available for the City’s General Fund. Current projections suggest that all of the City’s bonds for Mueller could be repaid by 2032.
In addition, as development occurs, the City will receive development and permit fees. Catellus will not receive any fee waivers and is expected to pay $5 million in City development fees.