Osakis Council sets hearing on TIF request
A public hearing will be held on Monday, April 3 at 7 p.m. at Osakis City Hall on a request from Paul Hartmann to create a Tax Increment Financing (TIF) District and adoption of a TIF financing plan related to a proposed eight-plex apartment building on Hartmann's property at 463 West Main St. in Osakis.
The request was approved by the EDA on Jan. 23, and recommended to the City Council at its Monday, Feb. 6 regular meeting.
Once the public hearing is held, the City Council will decide whether or not to approve the TIF financing.
Jason Murray, of David Drown Associates, and Hartmann attended the City Council meeting. Murray said TIF District 1-9 would be established for 26 years, and this project would be for 15 years, but it could change the project scope or add to the project and be recertified up to 26 years.
The plans call for construction of an eight-plex apartment unit, two stories high, with four units on each floor. Overall building footprint is 52 by 87 feet, with each unit roughly 24 by 36 feet in size. The units would be two bedroom units, with electric baseboard heat, window/wall mounted air conditioning in each unit, range and refrigerator provided, but no dishwater in units. There would be a common area laundry facility.
In addition, there will also be an eight stall detached garage on the site.
Work would begin by July 1, 2017, and be completed by Dec. 31, 2017.
The City Council addressed the decertification of one residential parcel in TIF District 1-8, which was mistakenly included in the Industrial TIF district.
Hartmann has deposited half of the funds associated with preparation of the TIF District. Total costs are estimated to be $3,750.
TIF eligible expenses would exceed $125,000.
Other TIF requirements include informing the city annually that the units are occupied by families meeting TIF income guidelines. At least 20 percent of the units will be occupied by low income families/individuals at or below the 50 percent of median county income adjusted for family size.
Upon formation of the TIF Distrtict, the developer agrees to rezone the property from commercial to appropriate residential designation.
The agreement calls for the city to provide TIF payments to the developer equal to 90 percent of the increment generated by the project, not to exceed $125,000.
The city would agree to provide 15 years of TIF payments, with the first payment set for Dec. 31, 2019.