DATE: August 22, 2019
TO: Members of the Economic Development Authority
FROM: Nate Carlson, Economic Development Coordinator
Mitzi Baker, Community Development Director
Title
Review of Subsidy Request by Rebound Real Estate, LLC.
Body
SUMMARY AND ACTION REQUESTED:
The EDA Board shall review the Subsidy Application.
BACKGROUND:
Rebound Real Estate, LLC, in partnership with the Stencil Group, is requesting Tax Increment Financing (TIF) incentives and other Business Subsidies from the City of Northfield and Northfield EDA to assist with a major redevelopment project consisting of a 79-unit urban residential complex at the southwest corner of 5th Street and Washington Street, referred to as 5th Street Lofts. The developers, Rebound and Stencil, have provided an application for the TIF funds and the additional requests to make this a feasible project, which can be found attached to this report. The development team introduced their project to Community Development staff in the spring, to the EDA in June and to City Council in July 2019.
The City's financial consultant and staff completed a thorough review of the subsidy application and confirm this application meets criteria, and can be considered a feasible TIF project.
Rebound Real Estate and Stencil Group will be constructing a $14.36 million urban residential complex at the southwest corner of 5th Street and Washington Street. This redevelopment project will have enclosed parking for tenants and may include public parking if the City chooses to participate in costs directly related to public parking. There are significant site improvements with this redevelopment project, as well as site acquisition costs. These costs, as well as the shortfall in operating cash flow, are eligible uses for TIF as well as other incentives that will be considered by the EDA and the City to make the project financially feasible.
The project Site Plan is expected to be reviewed by the Development Review Committee ...
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