ITEM 1_memo
City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163
TO: Mayor and City Council
FROM: Adam Flaherty, City Administrator & Finance Director
DATE: November 13, 2017
SUBJECT: Otsego Apartments Financial Assistance Request
On Monday, the City Council will be considering the updated request for financial assistance from
Otsego Apartments, LLC for a multi-family housing project within Riverbend North.
At a previous meeting on August 28, 2017, the City Council concurred that they would provide
further consideration to a Redevelopment TIF District. City Staff was directed to work with a
specialized consultant to determine whether the proposed project would meet redevelopment criteria
necessary to establish the respective TIF District.
City staff has been working with Michael Fischer from LHB. Mr. Fischer has informed City staff
that the proposed project would meet redevelopment criteria, and that he is comfortable with the
creation of a Redevelopment TIF District.
The City has also continued discussions with Ehlers as the Tax Increment Financing (TIF)
consultant for this request. Updated financial information, calculations and projections have been
included with this memo for review.
The applicant has developed a revised financial assistance request, which is attached with this
memo for review.
After the request has been presented to the City Council, the meeting will allow for the Council to
ask questions of the applicant and for the Council to have discussion on the request. No action is
necessary at this meeting; however, direction on how to move forward is being requested by both
the applicant and City staff.
Materials Attached for Discussion
1) Revised Request for Financial Assistance
2) Ehlers Financial Information, Calculations and Projections
a. Based on: Apartment Complex and Mini-Storage
b. Based on: Apartment Complex, Mini-Storage & Future Commercial