City Council Meeting Date: June 1, 2021
To: Mayor and City Council
City Administrator
From: Ben Martig, City Administrator
Mitzi A. Baker, AICP, Community Development Director
David Bennett, Public Works Director/City Engineer
Title
Consider financial assistance request for Community Action Center (CAC) Hillcrest development.
Body
Action Requested:
The Northfield City Council is asked to consider a motion to request staff to prepare legal authorization for Council consideration of the following incentives: (list options A-F).
Summary Report:
The Community Action Center (CAC) is re-developing the site formerly known as Hillcrest Motel or the Manger Inn, located along the west side of TH 3, east of Sheldahl Rd and north of Fremouw Ave. The parcel is approximately 2.2 acres, and is zoned N2-B: Neighborhood General 2. The site is proposed to create seven lots to support an affordable and sustainable housing community. A total of six buildings and 17 dwelling units will be included in the development. That includes two 4-plexes, one 3-plex, and three 2-plexes. This project also includes a solar array to supply energy to the homes, creating a net-zero project. Providing pedestrian facilities adjacent to the new roadway, and also along the east side of Sheldahl Rd from the new development to Fremouw Ave, will be required as part of this project.
Earlier this year CAC submitted a financial subsidy request to the City. Tax Increment Financing was deemed to not be a viable option for this project, since it will generate little or no tax revenue due to the project type and tax classification.
Following review of the subsidy request, the City of Northfield Housing and Redevelopment Authority (City HRA) held a public hearing this Spring to consider financial contributions to the Hillcrest development. The City HRA approved a cash contribution of $250,000 as a forgivable loan to assist with project costs.
Seeking Additional Financial Support:
The...
Click here for full text