City Council Meeting Date: May 7, 2019
To: Mayor and City Council
City Administrator
From: Janine Atchison, Housing Coordinator
Nate Carlson, Economic Development Coordinator
Title
Call for Public Hearing of Business Subsidy/TIF Request by Schrom Construction.
Body
Action Requested:
The Northfield City Council consider approving the attached Resolution Calling for a Public Hearing to be held on July 2, 2019. Staff is providing advance information only at this meeting. The public hearing and future regular meeting item will be an opportunity for the public comment, questions, and council deliberation on the issue.
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, 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...
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