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City Council Regular
Consider Resolution 17-79 Establishing Tax Increment Financing District 1-32, Riverdale Station Apartments
Matt Brown, Economic Development Coordinator
The Council is asked to consider a Tax Increment Financing (TIF) Plan establishing TIF District 1-32 for the Riverdale Station Apartments.
Following the July 18 Council meeting, the EDA will consider several documents related to a transit-oriented development project on land currently owned by the Anoka County Regional Railroad Authority along Northdale Boulevard. Sherman Associates proposes a first phase of 251 apartments in two buildings on about eight acres of the 16 acre site, as well as a small commercial building. A second phase will likely include senior housing on the balance of the site. In June 2016, the HRA entered into purchase agreements to facilitate the sale of the property to Sherman. The purchase agreements established that the HRA would purchase the entire site from for $2.3 million. Sherman would immediately purchase the land for Phase I of the project for $1.5 million and would purchase the remainder of the land for $800,000 within three years of the closing date for Phase I. In June 2017, the closing date was extended to December 29, 2017. The Planning Commission approved a site plan for the project in June 2017 and the City Council will consider a plat at its July 18 meeting.
The term sheet established that Sherman would receive tax increment financing for each phase of the project. At least 20% of the housing units will meet the affordability requirements established by State Statutes for the use of TIF. While State Statutes would allow up to 26 years of increment to be collected, the HRA's purchase agreement with ACRRA limits the use of TIF to 10 years. A new housing TIF district will be established so that Sherman will receive incremental property taxes on a pay-as-you-go basis for Phase I of the project. The total amount of increment paid to Sherman is expected to not exceed $2,276,000. These funds would be used to repay two TIF notes and would finance the project. It should be noted that the HRA is only pledging to pay up to this amount from available tax increment. In the event the project doesn't generate the amount of TIF identified in the notes, the HRA does not have to make up the difference. In order to create the new TIF District, the Council must hold a public hearing, approve the TIF Plan, and approve a modification to the Redevelopment Plan for TIF Project Area No. 1.
Staff recommends that the Council:
Conduct a public hearing.
Adopt Resolution 17-79 modifying the Redevelopment Plan for Project Area No. 1 and establishing TIF District 1-32.
TIF Plan, District 1-32
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