Council approves Country Manor PUD amendment, tax abatement and fee deferral for senior-care campus

Brainerd City Council on Feb. 3 approved a Planned Unit Development (PUD) amendment and a property tax abatement for Country Manor Brainerd Campus LLC and also granted the developer temporary deferrals for several city fees tied to the project.

The council voted unanimously to amend the Country Manor PUD to expand memory-care space, reduce the size of one building, remove a detached garage and adjust the site plan. Community Development Director James Krammick told the council the revised plan would result in a senior living campus composed of 44 standard senior apartments, 32 luxury apartments, 30 memory-care units and an attached day‑care facility with capacity for infants, toddlers, preschool and school‑age children. Krammick said the PUD amendment was recommended for approval by the Planning Commission and that a development agreement will be brought to council at the next meeting.

At the same meeting the council adopted a tax‑abatement resolution under Minnesota Statutes sections 469.1812–469.1815. City consultants presented an analysis based on a projected taxable value of about $18.8 million; under the recommended structure the city would provide a staged abatement (100% for years 1–3, 65% for years 4–17, and 35% for the final years) with an overall cap tied to either 20 years or a maximum dollar amount in the agreement. Staff said, using the current assumptions and the proposed 2025 city tax rate, the abatement likely would be exhausted in roughly 13 years rather than the full 20 years. The council approved the resolution by roll call vote.

Separately, during the Personal & Finance committee report the council approved a request from Country Manor to defer payment of sanitary and water connection charges (SAC and WAC), a deferred assessment and park‑dedication fees. The motion approved terms that allow the developer to pay the deferred charges over five years after the facility begins operating; council member roll call on that motion showed five votes in favor and two opposed (Bevins and Chesak). Staff explained the deferral is not a forgiveness of principal; in some parts the developer will pay a reduced interest rate of 1.5% on deferred portions instead of the full ten‑year interest that applied to earlier deferred assessments.

Council members who opposed the fee deferral cited fairness to property owners who paid assessments and interest in prior years and argued the buyer or seller should have resolved outstanding assessments when the property transferred. Supporters said deferral of timing for several fees was intended to help the project start and succeed, and that park dedication fees were an additional city fee the developer had not been aware of earlier.

The council recorded the PUD amendment approval (motion passed) and later adopted the tax abatement resolution (roll call yes). The development agreement and the final assessment and contract actions will return to council for future votes.

Ending: City staff and Country Manor representatives said construction is expected to start in 2025 with completion targeted by Dec. 30, 2026; the new taxable value is anticipated to be reflected in taxes payable in 2028, per the consultant analysis. The development agreement and related contract documents will appear on upcoming agendas for final action.