City Council Meeting Date: November 2, 2021
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Mitzi Baker, Community Development Director
Title
A Public Hearing to Consider expanding the Southbridge Development District and establish a Tax Increment Financing District for housing development south of Lincoln, in an area being platted as Kraewood.
Body
Action Requested:
The Northfield City Council will hold a public hearing and consider a proposal to expand the Southbridge Development District, and establish a Tax Increment Financing (TIF) district on a portion of the site being platted as Kraewood subdivision. Establishing the TIF District relates to a request by Rebound Stencil Development, LLC for a Housing TIF District to accommodate the development of a 100-unit apartment complex.
Summary Report:
Rebound Stencil Development, LLC is requesting Tax Increment Financing (TIF) incentives from the City of Northfield to assist with a mixed-income housing development within the Kraewood Development. The project has the potential to increase affordable housing options in Northfield by assigning 40-percent of the units at 60-percent Area Median Income (AMI) for the duration of the TIF.
The developer has submitted an application for a Housing Development TIF District. 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.
Rebound Stencil Development has proposed a $17-18 million apartment project that will a...
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