Council opens TIF process for Rohrer City West project; staff directed to include TIF plan on future agendas
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Summary
The council held a public hearing and directed staff to begin creation of Tax Increment Financing (TIF) District No. 27 for the Rohrer Companies City West apartment project; staff said the preliminary plan would support 20% of units at 50% AMI (about 39 units) plus the city’s existing inclusionary requirement of 10 units at 80% AMI.
During a separate public hearing on Oct. 21, the Eden Prairie City Council took the first procedural step to use tax increment financing (TIF) for affordability at the proposed Rohrer City West apartment project.
City staff described the action as an initial step: the council held the public hearing and directed staff to include a redevelopment plan modification for Redevelopment Project Area No. 5, to establish TIF District No. 27 and to add a proposed TIF plan and development agreement for consideration on future council and HRA agendas. No TIF assistance was authorized tonight; the direction authorizes staff to prepare documents for later formal approval.
Staff explained the likely affordability outcome under the draft plan: with TIF assistance and the developer’s commitments, 20% of the 195 units (about 39 units) would be restricted to households at or below 50% of area median income (AMI). In addition, Eden Prairie’s inclusionary policy would require roughly 10 units at 80% AMI beyond that set‑aside. Staff noted TIF is a state‑authorized financing tool that captures future tax increments created by new development and uses those funds to subsidize public objectives such as affordable housing; the city’s financial advisor (Ehlers) and other staff have prepared the preliminary plan and fiscal analysis.
Mayor Case and council members asked staff to summarize how TIF works and how it would be limited. Staff said the public hearing starts the process; later council action would be required to create the district legally and to approve any actual assistance in a development agreement. Multiple council members and staff reiterated that TIF terms and any affordability commitments would be spelled out in the eventual TIF development agreement and that those documents include look‑back and monitoring provisions.
The council voted to close the public hearing and to direct staff to include the redevelopment plan modification, establishment of TIF District No. 27 and the TIF plan on future agendas for formal consideration. The motion passed 5‑0.
