City Council Meeting Date: October 1, 2019
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Title
Consider Resolution to Approve Creating a Tax Increment Financing District and to Approve a Tax Increment Financing Agreement for Fifth Street Lofts.
Body
Action Requested:
The Northfield City Council shall consider the attached Resolution approving the creation of a Tax Increment Financing District and approval of the Tax Increment Financing Agreement.
Summary Report:
Rebound Stencil Development, LLC 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 East 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. The development team introduced their project to Community Development staff in the spring, to the EDA in June and to the 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 Stencil Development will be constructing a $13.66 million urban residential complex at the southwest corner of 5th Street and Washington Street. This redevelopment project will have enclosed parking for tenants. 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 Committ...
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