Next week, the Northfield City Council will consider approval of the tax increment financing agreement for the 106-unit apartment building
that is a key component to the Kraewood Development. The conversation during Tuesday night’s work session revealed concerns held by members of the council, and Mayor Rhonda Pownell, as well as concerns held by the developer of the building, that could complicate, and possibly even scuttle the project.
Nick Anhut of the Ehlers Group, which serves as financial advisors to the City of Northfield gave the council an overview of the agreement, and Community Development Director Mitzi Baker gave an update on the design of the apartment building. Councilor Suzie Nakasian asked, however, how the council could approve the TIF agreement without having already approved the development and plat agreements, which will be brought before the council in late March or early April.
Nakasian was reminded that the TIF only applies to the apartment building. The Plat Agreement will cover the entirety of the development, which will include single and multi-family homes as well, so the sequence of votes taken on the agreements does not make much difference.
She was also surprised to learn that the Council would not be asked to sign off on the design of the building, after being informed by Director Baker that the site plan consent would be given at the staff level.
Both Nakasian and Mayor Rhonda Pownell took issue with the process. Nakasian was very concerned that, as an elected official, she would be asked to vote for a major funding contribution toward a development that she could not be sure met every condition of the Land Development Code. While she said she is inclined to vote in favor of the TIF, she informed City Staff that before the vote on Tuesday she was going to need verification that each of her concerns had been addressed.
Mayor Pownell was also very clearly bothered by the sequence in which the council would be asked to vote. And she mentioned several times that the TIF agreement is more than 70 pages long, but was received by the council on Tuesday, giving them a week to read and to understand the complexities of the agreement before voting on it.
The mayor went so far as to suggest that the vote on the TIF be postponed until the Plat Agreement has been finished as well. Both City Administrator Ben Martig and Director Baker cautioned strongly against that idea. The apartment complex has faced more than $2 million dollars in cost increases since it was first proposed last spring. Putting off the agreement would mean that the Stencil Group, who is the developer of the building, would not be able to finalize its main financing, prepare construction documents or order the building materials until construction season was underway.
The Kraewood project has been a controversial one from the outset. The 100-unit apartment building and two dozen housing units will be built on the former Paulsen Tree Farm and has been met with stiff resistance by residents of the surrounding neighborhoods. A collaboration between the Stencil Group, Rebound Partners and Schmidt Homes, the developers had hoped to break ground last fall, but delays have forced them to revise the construction schedule several times.
Nate Stencil, the owner of the Stencil Group, joined the conversation to voice his strong concern that any more delays might force his company to call the project off.
“It’s the craziest I’ve ever seen it in my 23 years of doing this. I truly don’t know what our costs are going to be from week to week, much less month to month. Everyday there are new price increases on top of old price increases. We truly do want to push this forward one way or the other next week. And if that means it doesn’t work for the city, for whatever reason, I guess I can live with that. But I can’t live with being here in March and April talking about it.”
Despite Nakasian and Pownell’s concerns the TIF agreement is expected to remain on the agenda for next Tuesday’s meeting. Mayor Pownell said she hoped that staff would be ready to answer any and all questions about the project, the agreement, and the approval process.
Tuesday night’s City Council Meeting will be in the Council Chambers at City Hall. It will begin at 6pm.
Healthy Community Initiative seeking board and committee
Healthy Community Initiative (HCI) is currently accepting nominations for positions on the HCI Board of Directors, as well as various HCI
Committees. HCI board members serve three-year terms, beginning in September. HCI committee members serve for one year.
Formed in 1992, Healthy Community Initiative is a coalition run by a board of community leaders, youth, parents, and school representatives. Their stated mission is “to cultivate a collaborative community that supports, values and empowers youth.” To achieve this, the organization works with community partners to foster collaboration and to support community-driven efforts that benefit the youth and families of the Northfield area
The HCI Board meets from 7:30-9 a.m. on the third Wednesday of every month. HCI Committees meet monthly currently in a virtual format. A statement released by HCI said the schedule is set to accommodate members’ availability.
To nominate someone, or even yourself to the board, and for more information, please contact HCI at 507-664-3524 or info@healthycommunityinitiative.org.
