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City of Red Wing notifies Goodhue County of proposed 25-year TIF covering five downtown parcels
Summary
County staff presented the city of Red Wing—s notice of a proposed 25-year tax increment financing district covering five downtown parcels; the board received the item as an information-only notification and was told it may submit comments within 30 days.
Goodhue County staff told commissioners on Feb. 4 that the city of Red Wing has formally notified the county of a proposed 25-year tax increment financing district covering five downtown parcels.
The county was notified by the city on Jan. 25 and staff provided the required TIF information to the board on Jan. 28, the staff presentation said. The proposed redevelopment would affect five buildings in the downtown core — the former Hallstrom Floral Building, the old Chief Theater Building, the Eagle House Building, the former Riverfront Building and the former Multery Building — and would either remove or redevelop those structures to create 149 residential units and about 37,000 square feet of retail, restaurant or entertainment space.
Staff said county taxes collected for the five parcels in pay 2024 amounted to about $13,825. Under current TIF law, that base amount would continue to be collected by the taxing jurisdictions for the length of the TIF; projections provided to the county estimate the redevelopment could generate about $377,488 annually across the three major taxing jurisdictions (the city of Red Wing, the school district and Goodhue County). Staff said the county—s portion of that projection is about $131,823. Baker Tilly prepared the analysis attached to the city—s notification.
Because the submission is a statutorily required notification, the board had no formal approval authority at the meeting, county staff said. The board may adopt standard questions to send to the city or submit other written comments; any comments must be submitted within 30 days of receipt of the notice. Staff also noted the city has scheduled a public hearing on the TIF on Monday, Feb. 24, at about 6 p.m.
Commissioners asked clarifying questions about how TIF collections work over time; staff confirmed the baseline dollar amount collected by the county stays flat for the life of the agreement and the projected revenues in the analysis are calculated using current tax rates applied to the post-project valuation, per the contractor—s report. No board action was taken at the meeting.
