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The Nicollet City Council held a Public Hearing on a modifications for municipal development district located at the corner of 6th Street and Main Street before their regular meeting on Monday, July 8.
Shannon Sweeney of David Drown Associates explained the purpose for the hearing was to receive comments for the intended action to create a Tax Increment Financing (TIF) district.
"To create a TIF district, we establish boundaries or new areas where we capture the property taxes associated with a new market value in our city," said Sweeney.
The site is the former Trinity Lutheran Church day care facility that Adam Huiras plans to redevelop into a multi-family unit. In addition to redeveloping the former church day care, Huiras plans to build two more multi-family units on this site.
"The property taxes we intend to capture are the taxes generated as a result of the project that he constructs. Our plan is to use that money as a subsidy to help Adam get his redevelopment implemented," Sweeney said.
Part of the process is to send a draft of the TIF plan to both the county and the school district that includes a budget that shows the property from where the taxes will be captured. Normally, the county and school district conclude this is an opportunity to create a bigger tax base and more housing for the community.
The estimated reimbursement is $11,578 per year for 15 years, or $173,670.
A TIF agreement with the developer still needs to be completed which is being worked on by an attorney.
The hearing closed and the regular council meeting continued with approval of the resolution modifying development districting and adoption of the related TIF district.
In other news, city clerk Vanessa Drill reported that she has received several complaints regarding the property at 312 Fourth Street for appearance and possibly operating a commercial business in a residential zone.
The owner was contacted by Councilman Phil Radel, and a letter was also sent to the owner on December 27, 2023. After discussion, the council unanimously approved to contact the county attorney to enforce the city's zoning codes on the property owner.
The filing period for mayor and two council members is July 30-August 13. The positions of Mayor Fred Froehlich and Council Members Matt Anthony and Mary Wels are open this year.
Councilman Kevin Ostermann reported that John Kent has been offered and has accepted a maintenance position. He will be starting on August 5, 2024.
David Holcomb, representing the American Legion, was present to thank the council for the use of their building space for the 2024 Friendship Days activities.
The next Nicollet council meeting is 6 p.m. Monday, August 12.