New development gets TIF District
The Minneota City Council Monday approved a TIF (Tax Increment Financing) plan for the new Gorecki Addition, Minneota’s newest housing development.
The land is currently being prepared by Duininck of Prinsburg on County Highway 10, on the northeast edge of Minneota near the city burnsite.
A public hearing was held Monday night, after which the council approved the proposal.
The proposed TAX Increment Financing Plan was presented by Mike Bulbany of David Drown Associates, who told the board this brand new sub-division is a housing TIF District that will assess funds to support the new project.
The council approved a resolution to adopt the TIF District and to approve the bond sale.
They expect to close on the bond sale by June 28. City Administrator Shirley Teigland and Mayor John Rolbiecki were approved to sign the loan agreement.
Because there has been a continued need for housing in Minneota, the city is developing a subdivision and will utilize tax increment financing to help control resulting lot costs for moderate income families.
“Without the use of tax increment financing, the project would not be feasible,” indicated City Administrator Shirley Teigland.
“The total budget is $13.2 million for the 13-home project plus the land sale valued at $30,000 per lot,” said Bulbany.
“All sales of lots must go toward the project,” said Bulbany.
“In other words, you couldn’t sell a lot and put it toward a fire truck.”
County Commissioner Gary Crowley, representing the county board, said, “We just want you to know the county is in full support of this project.”
“If someone builds a home outside of this project, you can offer a tax abatement,” Crowley suggest.
“We are doing that in the county,” he added. The board felt the TIF assistance is necessary to control certain development costs at an affordable level for moderate income families.
The TIF plan is built on, “One new home being built per year,” said Bulbany.
The council is hoping to build two new homes per year. “If you do two new homes per year, this will work well,” Bulbany said.
One home per year will still work for the city.
IN OTHER action the board:
•Approved zoning permits for:
—Beth Buysse, 103 Wilson St. for a 14x14 utility shed.
—Gregory Jacobs, 108 Wilson Street, addition of a 12x16 deck.
—Megan Jelen, 503 N. Washington for a 10x15 patio and 114x93 foot fence.
—Cody Meyer, 410 N. Jefferson, 8x12 foot play house.
—Rick Peterson, 204 N. Adams, replace 30x12 foot deck.