To a meeting of the Rochester Economic Development Authority.

And we will move directly to our consent agenda.

Is there a motion to approve the consent agenda, which is our minutes from the March 2nd meeting?

So motion made by Councilmember Fredericks.

Okay.

Seconded by Councilmember Miller.

All in favor say aye.

Aye.

Opposed say nay.

And we will move to now our one public hearing, which is uh for a establishing development district number 88 and tax increment financing district number 88 1 and entering into a development assistant agreement with Rochester 1 Limited Partnership, Mr.

Svenby.

Good evening, EDA presidents, EDA members and Mayor Norton.

Brent Scenby Community Development.

This is a public hearing on TIFF district number 88 1.

We called it Lincoln Avenue Communities.

It's actually the same property where the council had the issuance of the public hearing for the bonds are negotiating the commons at Bear Creek.

So it went out the other day, took some pictures of the sites.

Looks like it was a rental property, probably a couple units in that property.

Here's a rending of what the project will look like when it's completed.

Again, it's 149 units with an income averaging of 60% AMI.

They have gone through the site development plan process with the community development department.

So this is the plan that was that has been approved for the project.

So it will be a very well sought after addition on 4th Street there, just on the east side of the river.

Some project details the developers Rochester One Limited Partnership located at 602 4th Street Southeast, just east of Bear Creek.

The development is 149 units of that.

They have units three units at 30% AMI, 27 units at 50% AMI, 83 units at 60%, and 36 units at 70% AMI levels.

Amenities include a fitness room, club room, and secure bike storage.

The timeline for construction is they anticipate starting construction here by the end of July of this year.

And if everything goes smoothly, they should be able to have it completed by end of December of 2027.

The TIFF district would be housing TIFF district.

The current property value of the properties is about 1.2 million dollars.

The value that we've received from the county assessor's office upon completion, the project would have a value of about 28.2 million dollars.

Based on our review by our financial advisor who reviewed the developers performa and with current market conditions, it's a recommendation of our financial advisor that we provide up to 19 years or just over 1.3 million dollars worth of principal TIFF for the project.

And that was achieved by having a 2.5% annual inflator on the market value for the property.

So we could get to that 1.3 million dollars quicker than 19 years, but um their miling shows that it would take 19 years with that two and a half percent inflator.

In a perfect world, it may be only 15 years before we get to that point.

At any point that TIFF district, we would stop paying the increment to the developer either at 19 years or that 1.3 million dollars, whichever occurs first.

And the TIFF note would be a pay as you goal note, meaning that the developer pays his property taxes.

The county collects that provides the cities with the available increment, and then we've rebate that back to the developer.

We do maintain five percent for admin expenses, and we also are keeping five percent into our housing pool TIFF.

Project benefits um again, it provides a number of um units at that 30, 50, 60, and 70 percent AMI levels.

It redevelops some under utilized properties, it will shrink then the neighborhood safety in the area, it creates density and the transit oriented development along fourth street there, and then the tax base grows once the obligation is met.

And then the tax base grows once the obligation is met.

Again, this evening, this is a public hearing of the EDA to adopt a resolution establishing the tax and equipment financing district and authorizing execution of a development assistance agreement with Rochester One Limited Partnership.

That's all I had.

Thank you, Mr.

Svenby.

This is a public hearing.

Anyone wishing to be heard on this item, please step forward.

Anyone wishing to be heard on this item, please step forward.

Mr.

Riley, if you want any to add any comments, now's the time to add them.

Thank you.

Mayor, Council President, Council members.

I think Brent did a great job of describing the benefits that we're bringing here.

I just want to say on behalf of the developer, we appreciate your consideration for the support.

Right now it's it's very difficult to finance projects.

I think you know you were alluding to uh with a project that was presented earlier this evening and using TIFF to finance this property is really imperative to getting it done.

So just want to say thank you and uh express how important this is to our project moving forward.

Thank you.