Larry Brown, development manager for the city's urban renewal agency, tells globest.com that the move could more than double the value of the parcels, which will eventually be sold off to developers for apartments, office space and community retail. Now, because of a lack of good road access and mass transit, the parcels, which total 3.3 acres, are worth about $30 per sf. With the streetcar running close by and other roadway improvements that will be forthcoming, Brown says the value of the property could rise by at least $10 per sf and as much as $40 per sf, more than offsetting the mortgage interest.

"The city's experience with the impact of the streetcar project on adjacent property values is that property values have increased on the order of 40- to 50%," Brown tells GlobeSt.com. "It's been a great tool for redevelopment, though it wasn't expected to serve that function."

Although a common private financing tool, Brown says it is the first time the PDC has considered such a method. The PDC will consider the proposal at its Aug. 14 meeting.