City Council Meeting Date: August 3, 2026
To: Mayor and City Council
City Administrator
From: Scott Wopata, Community Development Director
Title
Consider a motion of support for staff to amend the 2024 Archer Redevelopment TIF agreement to reflect the proposed and revised 2026 redevelopment project by Manawa, LLC.
Body
Action Requested:
The Northfield City Council is asked to approve a motion of support for staff to amend the Archer Redevelopment TIF agreement to reflect the proposed and revised 2026 redevelopment project by Manawa, LLC.
Summary Report:
The Archer House, a historic hotel and multi-use building at 212 Division St S, was severely damaged by a fire in 2020. The building was demolished in 2021 and redevelopment designs were reviewed and approved throughout 2023 and 2024. The City Council approved a Development Agreement (Resolution 2024-114) and a Redevelopment TIF agreement (Resolution 2024-115) in November of 2024. However, in November 2025, the developer announced that the redevelopment plans were not financially viable at that time.
In April 2026, the developer brought a revised project forward. The project received a Certificate of Appropriateness (COA) from the Heritage Preservation Commission in June 2026. Concurrently, the project also received approval from the Planning Commission related to a Conditional Use Permit (CUP) for onsite parking in the downtown and a building height variance. City Council approved the CUP on consent agenda in July 2026. Site plans have been submitted, reviewed, and approved by City staff.
Renderings of the revised project are included in the packet. The project is predominantly a boutique hotel with 57 hotel units and includes 19 stalls of enclosed parking accessed from the rear (riverside) of the building. It features 3 commercial spaces on the ground floor facing Division Street, including two restaurants and one event space. Public bathrooms will be available on the main/Division Street level and can be accessed by the public from either Division Street or an accessible elevator from the riverside. Signage and hours for public restrooms will be made clear to the public. The developer has determined that the amount of parking is adequate for their business needs with contingency plans in place for peak weekends (approximately 8 weekends a year). The project has also incorporated Sustainable Building Design practices consistent with the City’s Sustainable Building Policy as approved and reviewed by the Sustainability Coordinator.
The developer applied for TIF assistance in 2024 and City Council approved a TIF agreement based on those development plans. While the developer has been actively working through revisions to that project, staff have not yet defaulted the previous 2024 TIF agreement. Now that revisions are complete and approved by staff (site plan), Heritage Preservation Commission (Certificate of Appropriateness), and Planning Commission (CUP and Variance), staff are looking for a motion of support from Council for staff to amend the Archer Redevelopment TIF agreement to reflect the proposed and revised 2026 redevelopment project by Manawa, LLC.
The 2024 TIF Agreement states:
Article IV, Section 4.1: Events of Default Defined.
(1) Failure by the Developer to timely pay any ad valorem real property taxes assessed with respect to the Development Property.
(2) Subject to Unavoidable Delays, failure by the Developer to commence construction of the Project by December 31, 2025…
(3)
The developer has paid their property taxes in full, cleaned up the site, and has worked closely and regularly with City staff to show progress toward a future project. Amending the current agreement provides a more time and cost-efficient path to an approved development compared to defaulting the previous agreement and starting the process over. However, the City retains its option to default the TIF agreement at any time if the developer is still in default of the terms of the current agreement. Notice would be provided in writing to the developer. If the event is not cured within 30 days, the TIF agreement can be terminated.
While the proposed revised project is materially similar to the previous project approved in 2024, the changes are significant enough that the TIF agreement will need to be amended. With this motion, staff will work with the developer to amend the previous TIF agreement to reflect the details of this revised redevelopment project. Staff will then bring a revised Development Agreement and TIF Agreement for City Council consideration in the weeks ahead.
Alternative Options:
Council may decide that the revised project is not aligned with City TIF policy goals.
Financial Impacts:
The previously approved TIF Plan for this TIF District estimated $6,544,021 of incremental tax revenue over 26 years. The previous TIF Agreement provided approximately $3,015,000 in total TIF assistance. The amended TIF amount for the revised project has not yet been determined. The developer has provided a $5,000 escrow payment to the City to cover the legal and fiscal review costs associated with amending the TIF agreement.
Tentative Timelines:
December 2021 - City approved substandard designation prior to building demolition
October 2023 - Planning Commission review of TIF documentation for TIF-assisted project’s compliance with comprehensive development plans
October 2023 - EDA Board Meeting to review TIF request and consider recommendation
November 2023 - TIF Public Hearing and consideration to establish TIF District
November 2024 - TIF Agreement and Development Agreement approved by City Council
November 2025 - Previous project put on hold
December 31, 2025 - Event of default, City has option to terminate agreement
April 2026 - Revised project brought forward
June and July 2026 - Revised project approved by HPC and Planning Commission
August 3, 2026 - Revised project presented to City Council
August/Sept 2026 - TIF and Development Agreement reviewed by Council