The Mitchell City Council approved a resolution to create Tax Increment Financing District Number 44 and the project plan for a proposed Chef Louie restaurant and development near the bypass.

Planning staff presented the project plan to the council, describing a proposed 13,000-square-foot building with a restaurant, bar and lounge; staff said the project plan anticipates up to 15 full-time and 25 part-time employees and estimated total project costs at about $9.27 million, with roughly $5.45 million qualifying as TIF-eligible costs. Staff said the developer would be limited to the increment available and that the plan meets state and local TIF requirements; staff also noted a preliminary state classification letter indicated the project appears to be economic development.

Tom Peterson, attorney for the developer, told the council members representatives of the Frederickson family (the longtime owners associated with the previous Chef Louie) would be part of the project management and answered procedural questions about the underlying county TIF that overlaps a portion of the site. Peterson said the county TIF is scheduled to be paid off under current revenue projections in December 2028, and that the developers do not anticipate beginning development on the adjacent lot that is currently in county TIF 2 before 2028 or 2029.

A member of the public, Steve Simpson, urged greater financial transparency. "The project described in this project plan will not proceed and is not economically feasible, but for the use of tax increment financing," Simpson read from the project plan, and said that statement was an opinion "not backed up with financial data." He asked the council to require detailed operating statements and a rate-of-return analysis before approving the TIF. Simpson also recounted overlapping past TIFs along Commerce Street and questioned whether the public benefit test for state economic development had been met.

Planning staff responded that the project plan is not intended to match the level of detail in a developer's private financial due diligence but said staff had reviewed the plan and found it to meet statutory requirements.

After discussion and public comment, the council approved resolution R2025-73 creating Tax Increment Financing District Number 44 and approving the project plan. The motion to approve was moved and seconded and carried by voice vote.

Next steps: staff will finalize the developer agreement and related documents; the council retains authority through the developer agreement and annual review processes to track project costs and increment distribution.