Meeting Date: April 21, 2022
To: Members of the Planning Commission
From: Nate Carlson, Economic Development Coordinator
Title
Consider a Motion regarding the Development Program for the Master Development District and Tax Increment Financing (TIF) Plan for the Heritage Lofts TIF District.
Body
Action Requested:
The Planning Commission is asked to consider a motion regarding the Development Program for the Master Development District and Tax Increment Financing (TIF) Plan for the Heritage Lofts TIF District and conformance with the City’s General Plans for development and redevelopment.
Summary Report:
Nexus Outreach, LLC (Developer) is requesting Tax Increment Financing (TIF) incentives from the City of Northfield to assist with a mixed-income apartment housing project located off Heritage Drive in the southern portion of Northfield. The project has the potential to increase affordable housing options in Northfield by assigning 20-percent of the units at 50-percent Area Median Income (AMI) for the duration of the TIF.
The proposed Heritage Lofts apartment building is located on a 2.89 acre parcel zoned C2-B: Highway Commercial. Multi-family buildings of 9-units or more is a permitted use in the C2-B: Highway Commercial zoning district. The applicant submitted the site plan review application in November of 2021. The proposal includes an apartment building of 90 units (6 - Three bedroom units; 37 - Two bedroom units; 38 - One bedroom units; 9 - Studio units).
The proposed project is a permitted use in the C2 zoning district. The applicant has been working with staff on site plan review and land development code requirements since November and the proposed project has been reviewed by the Development Review Committee. A few items remain to be updated by Anderson Companies on planning and public works related comments.
Existing easements need to be vacated and rededicated before a building permit would be issued. Vacating easements is approved by City Council, which requires a public notice, two readings and publishing the vacation to the newspaper.
The City Council public hearing is scheduled for May 17, 2022. Prior to the public hearing, Minnesota Statutes require that a City’s Planning Commission review the land use within a proposed TIF District to inform the City Council whether its TIF Plan conforms to the general development plan of the City as a whole. The Planning Commission is being asked to review the contemplated multi-family apartment use as compared to the City’s Comprehensive Plan, and consider a motion confirming whether the proposed development within the TIF Plan conforms with the general plans for the development or redevelopment of the City as a whole.
City Council has also provided policy direction to expand the development district boundaries of the Master Development District to encompass all City limits of Northfield. This action will allow the Council greater flexibility to offer TIF Assistance without amending development districts to include non-contiguous parcels. This amendment will occur through Public Hearing process with the City Council.
Analysis:
The City’s Comprehensive Plan identifies the parcel as one of several “Pipeline Sites” on the Conservation and Development Map, which is vacant land that has been approved for preliminary plat by the City, but has not yet been final platted. The subject property is zoned C2-B, consistent with the City’s Comprehensive Plan. The C2-B District allows multiple housing types including Multi-Family Apartment Building with nine or more units.
Further, the project reflects the spirit and values of the 12 Land Development Principles, specifically applicable are:
3. The preference for accommodating future growth is in infill locations, then redevelopment/land intensification opportunities, and then on the edge of existing developed areas.
4. New and redeveloped residential communities (areas) will have strong neighborhood qualities.
6. Places with a mix of uses that are distinctive and contribute to increasing the city’s overall vitality are preferred.
b. New opportunities will be created for residents to live and work in and around the downtown.
8. A wider range of housing choices will be encouraged - in the community as well as in neighborhoods.
Finding:
Based on the above analysis, the proposed future use of multi-family housing contemplated within the TIF Plan is consistent with the Comprehensive Plan and existing zoning.
Alternative Options:
N/A
Financial Impacts:
Financial analysis is underway, with assistance from the City’s financial consultant. Project costs and potential TIF assistance figures are being adjusted to factor in sustainable building design elements. Staff anticipates terms for financial assistance, including the project costs and TIF figures will be available for the Council consideration on May 17, 2022.
Tentative Timelines:
The City Council will hold a public hearing on May 17, 2022 to consider the TIF district and amending the Master Development district boundaries.