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First mixed income apartment project gets approval in NBBy Barbara Brown Kelly Bros. got approval from the city council last month to form a tax increment financing (TIF) district and was awarded a conditional use permit so they could build two apartment buildings ñ one with 32 units and one with 24 units. The TIF district will stay in place for 10 years. The council asked Finance Director Dave Stutelberg to investigate the requirements of housing and rental rates in a TIF district. He presented his findings at Monday nightís council meeting. According to the cityís investment consultants, Springsted, the city could could require that 20 percent of the units ñ or 12 units ñ be rented at low income limits, which would be half or less of $52,012 per year. Another 12 units could be rented at market value, while the remaining 32 units would be required to be rented to people who make $75,300, the median income of the metropolitan area, or less per year. Stutelberg told the council that the guidelines are just the cityís way of influencing the amount of affordable housing in the area. He said the council cannot dictate which units are put into which category. In other words, Stutelberg said, the owner could rent all one-bedroom apartments at the lower income rates even though he may have a variety of styles available. The entire project could lead to more affordable rental units coming to North Branch, but right now there are no other developers in line to build here, Stutelberg said Tuesday morning. ìWe discussed this at the EDA and we know we didnít get all we wanted, but itís a good start,î said Councilman Rod Lofquist. Also at the meeting, the council approved the development of a tax increment financing district for Viking Coca-Cola. The district would be in the industrial park for a 10-acre parcel. Viking Coca-Cola will buy the land for $16,500 per acre with pay-as-you-go tax financing for nine years. The company, making the deal through Conlon Development Co., would build a 31,000 square-foot building and employ about 30 people, Stutelberg told the council Monday night. He said the plant is moving its operations from Pine City to North Branch and he did not know if any of the 30 jobs would be new hires. Also at the meeting, the council: ï Declared the cost to be assessed to landowners for the 400th Street improvement project as $255,471.60. The amount could be assessed to surrounding property owners at the improvement site, the intersection of 400th Street with Forest Blvd. to the east of Industrial Estates. The council could assess the full amount or find some way to split the costs with property owners. ©ECM Post Review |