Rochester EDA creates TIF District 86 to support 133-unit Lowertown apartment project

The Rochester Economic Development Authority (convened during the council meeting) established Development District 86 and Tax Increment Financing (TIF) District 86-1 and authorized a development assistance agreement with Rochester Lowertown Apartments LLC for a proposed five-story, 133-unit apartment building in Lowertown.

Staff described the project as a redevelopment TIF district addressing a previously blighted block between Eighth and Ninth Streets NE, west of First Avenue NE. The proposed development would include 133 apartment units (66 units restricted at or below 120% area median income) with below-grade and surface parking, fitness and club rooms and a rooftop deck; the developer also proposes roughly 10 townhome units north of the TIF boundary.

EDA staff estimated the current total taxable value within the proposed TIF boundary at about $1.3 million and said the assessor projects a post-development market value of roughly $27.4 million. Under the proposed pay-as-you-go TIF note, staff proposed development assistance of about $3.9 million in principal; the increment split would allocate 90% of increment to the developer, 5% to administrative costs, and 5% to the EDA's pooled affordable housing set-aside.

Staff noted the TIF is a redevelopment-type district (blight finding adopted previously) and estimated a roughly 20-year payback horizon under the proposed structure. Supporters at the public hearing included a representative of the Lowertown Neighborhood Association who said the site had been troubled and that the project would bring customers and residents to nearby businesses.

EDA members voted unanimously to create the district and enter the development assistance agreement. Staff said pooled TIF set-aside funds previously supported other affordable housing projects and could be used for future affordable housing measures.