ITEM 5.2 Otsego Apartments LLC TIF application0
ots11.10
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Lori Johnson, City Administrator
March 23, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
Lori Johnson, City Administrator
Andy MacArthur, City Attorney
5.2
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend authorization to engage legal and fiscal consultants for review of Otsego Apartments LLC
Tax Increment Financing (TIF) application.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
The City has received a TIF application for financial assistance (including payment of the $5,000
application fee) from Otsego Apartments, LLC for TIF assistance for an apartment complex. Briefly, the
proposed development and request as stated by the applicant in the application are as follows:
• Proposed TIF District includes the 9.3 acre apartment development plus the adjacent 40.06 acre
Riverbend Mobile Home Park.
• The first phase of construction would start in 2015 with phase two beginning in 2016 or 2017.
• The total proposed project cost including land, proposed market value at completion and other
relevant data are contained in the application to be reviewed.
• The requested TIF assistance is $4,500,000.
The TIF application fee is intended to cover legal, financial, and staff review of the application. In the
past, Mary Ipple of Briggs and Morgan has served as the City's economic development legal advisor and
it is recommended that she review this application for legal compliance. Fiscal review by a financial
analyst is recommended through Ehler's and Associates.
Planning review will be conducted simultaneously led by City Planner, Dan Licht.
SUPPORTING DOCUMENTS: o ATTACHED X n NONE
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to authorize staff to engage legal and financial consultants for review of the TIF Application from
Otsego Apartments, LLC.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
Review paid by TIF Application fee
❑ NO
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS: