Rochester, MN (KROC AM News) - The developer of the Miracle Mile housing project has run into some serious problems at the site and is asking the city for more money.

As the site was being prepared, it was discovered a section of the bedrock was not suitable for footings. This has required more work to allow the project to proceed - and the unexpected problem has driven up the construction cost by $1.3-million.

The developer is now asking the city for an extra $650,000 in Tax Increment Financing to help cover the extra cost. The city earlier approved TIF funds of $2.9-million for the project.

The City Council is scheduled to vote on the request Wednesday evening.

The staff memo summarizing the issue says “with no ability to generate any revenue to offset that expense, there is a likelihood the project will not move forward and there will be a major standstill or possibly be abandoned.”

The extra work has pushed the expected completion date back two months to Nov 30 next year.

Ironically, developer Javon Bea asked for a higher amount of public assistance for the $36-million project earlier this year. Staff had recommended $2.9-million in tax increment financing to cover infrastructure costs. Bea asked for $3.4-million. The council went with the staff recommendation. If the new request is approved, the TIF total will rise to $3.5-million.

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