The construction of a major housing project in the community took another step toward reality Tuesday night when the Redwood Falls city council approved the creation of a new tax increment financing (TIF) district on a piece of land located in proximity to the Redwood Valley Middle/High School school campus.
The creation of the TIF district would allow the company planning to build on it the opportunity to be reimbursed for some of the property taxes it pays during the first years the facility is operating in the community.
The housing project being proposed by Trident Devel-opment, LLC of St. Cloud is for an apartment complex on land northwest of the school building, which has most recently been farmed.
The site, which is under purchase agreement with the Redwood Area School District, would be the location of the apartment building with the potential to create up to 72 one-, two- and three-bedroom units.
According to Roger Fink of Trident, the project is scheduled to be built in two phases, with the first phase including the construction of 38 units, followed by another 34 units in phase two.
The hope is for the first phase to be completed and then occupied quickly, in order for the second phase to begin. Fink said the plan is to begin construction of the facility yet this season, adding that could be as late as this fall. The facility could be ready to be occupied as early as next spring. Ideally then the second phase would begin with that work starting one year from now.
Although the city did create the new TIF district, it has not officially approved any kind of financial agreement with the project developer.
That development agreement is going to be brought before the city council at an upcoming meeting.
“We are happy to have you here,” said Gary Revier, mayor, to Fink during the meeting.
In addition to approving creation of the TIF district, the city also approved the replatting of land for the project, and created a new joint powers agreement with the Redwood Area School District with a two-acre portion of land adjacent to the housing project that is going to be split from the rest of the land by the extension of Eastwood Drive.
According to Patrick Roh-land, city attorney, that piece of land is going to be offered for sale, with the city and school district sharing the revenue from the sale. The city would use the funds it would receive to cover costs from the East-wood Drive expansion.
In other action during its meeting Tuesday, the council:
• Approved a hydroelectric project time extension for another 60 days, with an additional engineering agreement amendment. According to Chuck Heins, public utilities superintendent, the project has been slowed due to items arriving late, and he said the plan is to have the project completed by September.
Page 2 of 2 - • Accepted the low bid from Everstrong Construction for the street maintenance facility at a cost of $1,106,000.
According to Jim Doering, public works project coordinator, the plan is for the project construction to start in July.
• Approved the sale of the five-bay storage facility at a cost of $1 with the purchaser agreeing to move the building. The city is going to provide assistance through the lifting of power lines when the building is moved at a cost of approximately $6,000, which is much less than the anticipated demolition cost of $28,000.
• Approved a downtown commercial rehab loan and grant totaling $30,000 for Dennis Hoffbeck.