Rochester Economic Development Authority Meeting - December 9, 2024
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Rochester Economic Development Authority Meeting - December 9, 2024
The Rochester Economic Development Authority (EDA) met on December 9, 2024, at 8:00 p.m. following the regular City Council meeting. All seven members were present. The meeting included approval of consent agenda items, two public hearings to establish new Tax Increment Financing (TIF) districts, and unanimous decertification of two older TIF districts.
Consent Calendar
- Approval of Minutes: The minutes and video of the September 9, 2024, EDA meeting were accepted unanimously as the official record.
Public Hearings
- Item 4A – Establishment of TIF District No. 83-1 (Prairie Ridge): Community Development Senior Administrative Analyst Brent Svenby presented a proposal to create Development District No. 83 and TIF District No. 83-1 for a 301-unit development (201 for-sale, 100 rental) at Prairie Ridge. The developer, West 80 Partners (represented by Jeff Brown), requested $20,000 per home for 44 owner-occupied single-family homes sold to income-qualified buyers (≤100% AMI for households of 1–2, ≤115% AMI for 3+). The $800,000 total would be front-funded from the city’s Economic Vitality Fund and repaid via TIF increment over an estimated 7–8 years. The public hearing was opened and closed with no public testimony. Councilmembers discussed the novel structure (city provides upfront funding, then collects increment to repay itself) and expressed support for the affordable homeownership component. The item was approved unanimously.
- Item 4B – Establishment of TIF District No. 82-1 (Civic Center North Lots): Strategic Initiatives Director Joshua Johnson presented a proposal to establish Economic Development District No. 82 and DMC Redevelopment TIF District No. 82-1 for eight city-owned parcels near the Civic Center. The developer, Sherman Associates, is not yet seeking a development agreement; this step only establishes the TIF district. Public hearing: One speaker, Jeff Derby, asked about the vetting of companies (including whether they have buried toxic materials or are owned by the Chinese Communist Party). Staff responded that Sherman Associates is a reputable Minnesota-based company. Councilmembers noted that a funding gap remains (related to energy plans) but expressed hope the project will move forward, providing significant downtown housing. The item was approved unanimously.
Discussion Items
- Item 5A – Decertification of TIF Districts 33-1 and 39-1: Brent Svenby presented resolutions to decertify TIF District No. 33-1 (Town Hall Estates) and No. 39-1 (Cascade Creek Redevelopment Project) because the city’s obligations had been met and the statutory terms had expired. No public testimony was taken. Councilmember Keane noted that decertification means the properties now contribute fully to the tax base, and that the former Town Hall site will now support supportive housing in other ways. The item was approved unanimously.
Key Outcomes
- Consent Agenda: Minutes of September 9, 2024, approved unanimously.
- Item 4A: Resolution EDA24-010 adopted establishing TIF District No. 83-1 and authorizing the Development Assistance Agreement with West 80 Partners, LLC. Motion by Keane, second by Palmer; vote 7-0.
- Item 4B: Resolution EDA24-011 adopted establishing TIF District No. 82-1. Motion by Keane, second by Palmer; vote 7-0.
- Item 5A: Resolution EDA24-012 (decertifying TIF 33-1) and Resolution EDA24-013 (decertifying TIF 39-1) adopted. Motion by Keane, second by Palmer; vote 7-0.
- Adjournment: Motion by Palmer, second by Wahl; approved unanimously.
Meeting Transcript
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.
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