Uh Rochester Economic Development Authority meeting for December 9th, 2024.

We do have one item on our consent agenda.

That is the minutes from September 9th.

Okay.

Second.

All right.

Any discussion, Councilmember Wall?

None.

Others?

All in favor say aye.

Aye.

Motion carries.

All right.

We have a couple public hearings tonight.

The first I will invite Mr.

Svenby up.

And it is item 4A, establishing development district number 83 and tax increment finance financing district number 83-1 and entering into a development assistance agreement with West 80 partners.

Just note that this is the same process we use for our regular public hearings.

And I will kick it over to Mr.

Svenby to start us off.

Yep, this evening I have a very exciting project for you guys.

Um probably the first time in 20 years since we've had an application for TIFF for a only owner-occupied single family development.

So the city did receive an application from West 80 partners seeking TIFF financing on 44 sale homes within the Prairie Ridge development.

And the Prairie Ridge development is about 301 total housing units with 201 of those being for sale and about 100 units being rental.

Earlier this year, the council did provide the developer about $4 million in funding that has been made available through the economic vitality funding.

So the council did a grant that um in July of this year.

So tonight we are before you asking approval of a TIFF district, TIFF plan and a development assistance agreement and using an interloan fund to fund the um TIF district at this point.

Basically, it would be we would provide the developer $20,000 per home.

Um that once the home is constructed and sold to an income qualified buyer.

So in the case of a family of two or less individuals, that family has to meet the income requirements of 100% of the area median income.

Families of three or more, that income restriction is 115% of the AMI.

At that time the house is sold, we would provide the developer $20,000, and then we would um take that fund funding from the economic vitality funding, and then we would pay ourselves back over the years when they pay um through tax increment financing.

Um it's estimated that probably takes seven to eight years to pay back that total of eight hundred thousand dollars, assuming that they find um or are able to sell 40 homes to income qualified buyers.

So this evening we're asking you for adoption of the resolution which establishes the district, approves the TIFF plan, approves the interloan fund, and approves the execution of the development assistance agreement and the developers here this evening.

All right, we'll get back to you after the public hearing.

Would the developer or applicant like to speak?

So please introduce yourself.

You have up to 10 minutes.

Good evening, Council President Carlson, Council members.

Um, I'm Jeff Brown.

I'm with North Rock Real Estate, and I represent uh West 80 partners.

Um this is kind of the last leg of a project that we've worked long and hard with your staff and uh I've been before you a number of times, but I'm really here just to answer any questions that you might have.

And um so let me know.

All right, we'll get back to you after the public hearing.

So I'll open the public hearing.

Would anyone like to speak on this item?

Okay, we'll close the public hearing.

Are there questions for the applicant or staff?

Councilmember Keene?

Yeah, just uh to staff.

I I just want to every um TIFF district I've been involved with is owner, uh the owner keeps ownership.

Uh, and I'm just making sure I understand the logistics of a TIFF district where it's being sold to somebody else who's going to be paying their taxes, but it's not a TIFF thing that it's going back to them.

This is this is tied to the economic vitality fund and it's the the taxes that are being paid by other than the developer or will go back to repay the uh economic vitality fund.

Correct.

Yep.

Yeah, so the homeowner will continue to pay their taxes on the property.

The county will collect that increment for us on those lots that are are in the TIFF plan.

That increment will come back to us, and then we'll pay ourselves back the $20,000 per home per dwelling.

Okay, I'm I'm trying to make sure I understand that the the idea before was with tax increment financing.

If someone didn't pay their taxes, there was no increment paid out.