City Council Meeting Date: July 23, 2019
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Title
Continuation of Public Hearing on TIF Request by Schrom Construction.
Body
Action Requested:
Hold the public hearing and close at the end. See “Public Hearing Procedure (taken from City Council Rules of Business)” in the Summary Report section provided in this memorandum.
Summary Report:
This agenda item is a continuation of a hearing that was originally opened on July 2nd and has been continued to this meeting.
No action is taken during the public hearing. Following the public hearing, Council will be considering approval of the TIF District, the TIF Agreement and Public Improvements Development Agreement.
Project Background Summary
Schrom Construction, Incorporated is requesting Tax Increment Financing (TIF) incentives from the City of Northfield to assist with a major planned housing development. The project has the potential to increase affordable housing options in Northfield at Maple Street South and Ford Street East. The proposed “pay-as-you-go” TIF District requires the developer to pay all development costs with their own funds. The “pay as you go” reference is in relation to the owner taking on the full risk of future TIF increment payments annually to repay eligible up-front development costs. As the net tax capacity of the district increases, the increase in property taxes paid by the developer (tax increment) can be used to reimburse the developer for eligible costs such as land acquisition, site preparation, and public infrastructure.
See attached presentations for details on the project and proposed tax increment financing. City staff and Nick Anhut with Ehlers will be presenting at the meeting.
Traffic and Street Network Connectivity
The City’s Comprehensive Transportation Plan, identifies both Maple Street and Ford Street with a function classification of Collector Roadways. The purpose of collector roadways is to receive traffic from local neighborhood streets, and facilitate movement to arterial streets. It is intended for these roadways to see increased volume of traffic as the area surrounding continues to develop. A typical two-lane collector roadway can support up to 10,000 vehicles a day, however most collector streets within Northfield are under 5,000 vehicles a day. The 2030 projected traffic volume for Maple Street is 2,500 vehicles a day. The current roadway configuration supports the growth in traffic on the roadway.
Maple Street adjacent to Spring Creek Soccer Complex experiences on street parking utilized throughout the soccer season and especially during tournaments. The roadway width is 36 feet wide with two 8-foot parking lanes and two 12-foot drive lanes. The width of the roadway will allow for emergency vehicle access in and out of this area. In addition, Ford Street will ultimately be connect to TH 246 for additional access to the area.
Public Hearing Procedure (taken from City Council Rules of Business):
A Public Hearing is used by the City Council to solicit the public's comments on various projects or City operation procedures.
A. The Chair will open (in this case “re-open”) the hearing by identifying the subject.
B. Staff Presentation- staff will give a presentation on the subject.
C. Applicant's Presentation- if needed.
D. Public Input- The public will have the opportunity to speak for or against the issue. The public may ask questions, make comments, voice support, agree or disagree with the issue.
1. The Chair will recognize a speaker at the podium and comments/conversation will be between the Chair and speaker; and between the Chair and Council Members.
2. At the podium the speaker must give their name, address, and if representing a business, must give the name of the business or corporation. If an Attorney or consultant is representing a client, the client must be identified for the record.
3. Speakers will be allowed to speak a maximum of two (2) minutes per item (not including interpreter’s time).
4. Speakers who have material to be handed out to the City Council Members will pass the material to the City Administrator. The City Administrator will then pass the information to the appropriate people. A minimum of twelve (12) copies are needed.
E. Questions or Clarifications from City Council - After the public input of the public hearing is completed, the City Council may request questions or clarifications prior to closing the public hearing. This section will be used when there are questions related to the topic on which the public hearing is being held. Questions should be succinct and avoid being rhetorical or leading in nature. Subsequent actions of the City Council provide for opportunities for further questions or clarifications from the City Council.
F. Any material to be entered into the record shall be noted. Any written communication presented to the City Council during a City Council meeting shall be read into the record or summarized for the record or simply delivered to the City Council, as the City Council may determine. They shall then be recorded in the minutes by title and filed with the minutes in the office of the City Clerk.
G. Motion to Close Hearing- The Chair will state if there is an extension of time for public input into the hearing. If not, the City Council will make a motion, second, and vote on closing the public hearing.
Alternative Options:
N/A
Financial Impacts:
• TIF Amount Requested: 15 - 20 years of TIF (Amount to be determined)
• Type of TIF District: Housing Development District (25-year Maximum District Life)
• TIF Uses: Site improvements, infrastructure construction and engineering of footings and foundations and assistance with annual cash shortfall
• TIF Funding Structure: “Pay-as-you-go.” The Developer will incur all upfront costs and be reimbursed over time.
Tentative Timelines:
May 8 - Rice County and Northfield School District notified of draft TIF Plan
June 12 - Publication of notice of public hearing for TIF
July 2 - Council holds public hearing on TIF and continues hearing to July 23
July 10 - Republication of notice of public hearing for TIF
July 23 - Council consideration of Resolution approving TIF District, TIF Agreement and Public Improvements Development Agreement