City Council Meeting Date: June 2, 2020
To: Mayor and City Council
City Administrator
From: Nate Carlson, Economic Development Coordinator
Title
Consider Calling for a Public Hearing on Residential Tax Increment Financing incentive for Spring Creek II Affordable Housing Project.
Body
Action Requested:
The Northfield City Council consider approving the attached resolution calling for a public hearing on the Residential Tax Increment Financing request for the Spring Creek II affordable housing project to be held on July 21, 2020. 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:
Three Rivers Community Action, 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 by implementing the second phase of the Spring Creek Townhome development. The developer, Three Rivers, has worked with the HRA over the past few years to secure Low-Income Housing Tax Credits for the Spring Creek II project. The HRA will be contributing land to the development. The developer received confirmation last fall that their project was chosen for these tax credits.
The City Council and HRA approved resolutions of support for this project and the use of TIF in Spring 2018. The HRA and Council resolutions are attached for review.
The developer recognized that the City Council would also play a part in establishing this affordable housing project using Tax Increment Financing. As such, 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 o...
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