Rochester City Council to Act on Tax Increment Financing Plans

Rochester, MN (KROC-AM News) - The creation of two new Tax Increment Financing Districts is on the agenda next week for the Rochester City Council acting as the Rochester Economic Development Authority.

Public hearings are scheduled Monday on the proposals. One calls for a new TIF District for a portion of the Prairie Ridge development along Valleyhigh Drive in northwest Rochester. It would provide $800,000 in public assistance for the development of 201 new homes. The Tax Increment financing would be part of an overall public funding package approved by the Rochester City Council in July that totals $4 million dollars.

The agreement with the developer, West 80 Partners, requires the homes be sold to qualified buyers meeting income restrictions. According to city documents, the income requirements would allow a household of two or less to afford a home valued at around $368,000, while a household of three or more persons could afford a residence valued at about $426,000.

Get our free mobile app

The other proposed Tax Increment Financing District up for a public hearing on Monday involves a long-awaited housing project in downtown Rochester. The new TIF would provide approximately $13 million in public assistance for the development of hundreds of housing units on the Civic Center North Parking Lot site just north of Center Street and across the Zumbro River from Mayo Field.

Two years ago, the City Council approved an Exclusive Negotiating Rights Agreement with Sherman Associates to advance the project, which calls for a 14 story tower with more than 240 market-rate housing units and nearly 360 parking spaces. The estimated budget for that portion of the project is over $101 million.

The development plan also calls for the construction of a four-story building with 76 units of affordable housing reserved for households earning 50% of the Area Median Income. Renters in the smaller building would have access to 80 parking spaces included in the 14 story tower. The estimated price tag for the affordable housing project is just under $29 million.

In addition to the TIF funding, the public assistance package also includes $3 million in Destination Medical Center State Infrastructure Aid and the transfer of the ownership of the city-owned land.