City Council Meeting Date: January 21, 2020
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Title
Consider Motion accepting the Declaration of Restrictive Covenant for 5th Street Lofts.
Body
Action Requested:
The Northfield City Council is requested to make a motion accepting the Declaration of Restrictive Covenant for the 5th Street Lofts redevelopment project.
Summary Report:
The City of Northfield approved a Tax Increment Financing (TIF) Agreement on October 1, 2019 for the 5th Street Lofts redevelopment project. Within this agreement, an affordability provision was drafted and approved by the developer and City Council. Section 3.3 states the following.
The developer’s lender has requested to record the attached Declaration of Restrictive Covenant regarding the affordability requirements at the time of closing. This Covenant benefits the City to ensure that the affordability requirements are upheld. At this time, the developer is requesting that the City accept the execution and recording of the Declaration of Restrictive Covenant. City staff has discussed this request with City Bond Counsel, Jenny Boulton of Kennedy & Graven, and found this to be an appropriate action for the City Council to accept.
Alternative Options:
Not applicable.
Financial Impacts:
Not applicable.
Tentative Timelines:
The developer intends to close on financing and property acquisition in the near future.