Housing and Redevelopment Authority Meeting Date: April 21, 2026
To: Members of the Housing and Redevelopment Authority
From: Scott Wopata, Community Development Director
Emery John, Program Associate
Title
Consider a motion affirming the proposed TIF Plan for Harvest Hills conforms to strategic housing goals for the City as outlined in the 2025-2028 Strategic Plan and Northfield 2045 Comprehensive Plan.
Body
Action Requested:
The Housing Redevelopment Authority is asked to approve a motion affirming the proposed TIF Plan for Harvest Hills conforms to the housing goals for the City as outlined in the 2025-2028 Strategic Plan and Northfield 2045 Comprehensive Plan.
Summary Report:
The Harvest Hills Tax Increment Financing District (TIF Plan) is being created to facilitate a new mixed-income townhome rental housing development in the City of Northfield. The development is expected to consist of approximately 71-units.
80% of the units are market rate and estimated to rent for approximately $2,400/month; affordable for households around 80% of the area median income (AMI) or $93k annual household income for a family of 5.
As is required with a housing TIF district per state statute, this development will adhere to strict affordability guidelines for 20% of the units to be affordably rented to households at 50% of the Area Median Income, as defined by the Department of Housing and Urban Development for Rice County. These affordable units are estimated to rent for approximately $1,700/month; affordable for annual household income of approximately $60k for a family of 5.
The project will occur in two phases on approximately 10.3 acres of undeveloped vacant land identified as Parcel ID# 22.12.4.26.022. The first phase is anticipated to begin in 2026 with grading and infrastructure improvements necessary to construct 38-townhome units. A second phase for the remaining units is planned after completion and occupancy of phase 1.
The Planning Commission reviewed the proposed development to ensure its conformity with the general plans for development of the City and the Northfield 2045 Comprehensive Plan at their April 16, 2026 meeting.
The applicant has completed a Business Subsidy Application for financial assistance with the project. Staff have reviewed the request and completed initial due diligence with Ehlers Public Financial Advisors. The prepared TIF Plan is attached. Appendix D (page 23 and 24) specifically reviews the finding that the proposed development would not occur solely through private investment.
Any financial assistance for this project from the City also triggers the Sustainable Building Policy.
City Plans & Policies Relevance:
This development meets the Northfield 2045 plan in many ways including, but not limited to:
The planned development is in a mixed-use residential zone on the Future Land Use map Figure 4 (56)
The TIF plan triggers the City’s Sustainable Building Policy, which aligns to Chapter 3: Access: Strategy 6: Design for resiliency and sustainability; Action 2: “Encourage the use of energy-efficient mechanical systems and building products and/or the use of building designs and materials that reduce lifecycle carbon and reliance on non-local energy sources in rehabilitation and new construction to decrease building operation costs and impacts on the environment” (77)
The added bike access to the middle school and school buildings aligns with Chapter 3: Access: Strategy 5: Design for safe access, by connecting school district trails to neighborhood streets.
Chapter 4: Sustainable Economic Future Strategy 8: Build more housing (104), and Strategy 10: “Create programs to support affordable and sustainable homes and neighborhoods. (106).
Additionally, this project is aligned with the adopted Strategic Plan of the City of Northfield Strategy #2: Increase Housing Availability, target to add 50 multi-family homes annually through 12/2028.
This proposed development also exceeds the goals of the strategic plan by ensuring the affordability of 20% of the proposed units.
Alternative Options:
HRA could alter the motion or decline to approve the motion.
Financial Impacts:
While the TIF plan itself has financial impacts, the scope of this motion is limited to an affirmation that the proposed project conforms to the strategic housing goals of the City, as outlined in the 2025-2028 Strategic Plan and Northfield 2045, which does not have a direct financial impact. The administrative cost of the TIF analysis has been paid by the developer.
Tentative Timelines:
ü April 16 - Planning Commission motion and review
• April 21 - Housing Redevelopment Authority motion and review
• May 5 - City Council action on Harvest Hills preliminary plat
• May 19 - City Council public hearing on establishment of TIF district; consideration of resolution adopting TIF plans and approving TIF district
• End of June - Projected construction date