City Council Meeting Date: July 23, 2019
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Title
Consider Approval of Tax Increment Financing District/Agreement with Maple Brook, LLC.
Body
Action Requested:
The Northfield City Council considers approving the attached Resolution approving the Tax Increment Financing District and TIF Agreement with Maple Brook, LLC d.b.a Schrom Construction.
Summary Report:
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. Mr. Troy Schrom, owner of Schrom Construction and President of Maple Brook, LLC, has submitted an application for Housing Development TIF District, which is attached to this report. 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.
Community Development staff began working with Mr. Schrom and his development team in Fall of 2017. Housing Coordinator Janine Atchison and several members of the Community Development Department met with the developer regarding the project scope and project area. After examining several potential options, it was determined that no other alternative would accommodate Schrom Construction other than the Maple Street project area.
City Planner Scott Tempel is working with the developer on the site plan...
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