Hanover would support TIF for senior housing

The Hanover City Council said it would support tax increment financing (TIF) to assist in a senior housing proposal.

The council also heard an update regarding public transportation.

 

SENIOR HOUSING

The city has been working with a senior housing company to locate affordable senior housing at a site along Fifth Street.

The company has been applying for different funding sources, and said one thing that would help is the city’s support.

Such support could come from the council approving a tax finance district. Under TIF, the city would continue to collect the tax revenue from the parcel, but any additional tax value generated from development would be reinvested into TIF eligible expenditures, such as utility construction.

The TIF district would have a set number of years where the increment taxes are reinvested back with the property before expiring.

Mayor Chris Kauffman and councilors Ken Warpula, John Vajda, Wendy Pinor and Doug Hammerseng approved writing a letter of support to submit with all the funding applications, as well as intent to create the TIF district. This is contingent on the company securing its other funding sources.

“We’ll have a lot more details late this summer if they find the other funding,” administrative assistant Brian Hagen later said. “Then they would formally request the TIF district.”

The city’s Economic Development Authority also supports creating the TIF district.

If the company secures its funding sources, construction could begin as late as fall, “but next summer for sure,” Hagen added.

 

TRANSIT

In further matters, Wright County Board Commissioner Mike Potter was present with an update about public transportation.

The county board and Trailblazer are not negotiating after an impasse, but the state did approve Trailblazer to operate in Wright County for 18 months with or without an agreement from the county. Trailblazer is the department of transportation’s preferred transit partner for Wright County in wake of the River Rider service ending July 1.

Wright County cities are now negotiating their own joint powers agreement with Trailblazer. Several Wright County cities have signed on, others like St. Michael want more information. And the Hanover council, too, was taking a precautionary stance.

“(The council) doesn’t feel like the information they have is good enough quality to be willing to move forward and put that much time and effort into it,” administrative assistant Hagen said. “So we’ll get better numbers and specifications from Trailblazer.”

The council thus tabled action on the joint powers agreement.

In other action, the council:

APPROVED bids for the Lake Independence Regional Trail. This is the Three Rivers Parks trail that will be extended from Crow-Hassan Park Reserve along the north side of Hennepin County Rd. 19 to the Historic Bridge crossing. Bids will open in July and construction should commence soon after, with the goal of completion by the end of September.

HIRED an office intern for a period up to six months.

HEARD an introduction from Kevin Kasel, who is seeking to win Republican primary nomination for Dist. 30B state representative. Kasel is presently a St. Michael City Council member.

 

up arrow