Farmington council approves $50,000 MRA incentive for renovation of 16‑unit building at 218 N. Allen

The Farmington City Council on a unanimous vote approved up to $50,000 in Metropolitan Redevelopment Agency incentive funds to TCB Properties to complete renovations at a 16‑unit apartment complex at 218 North Allen Avenue.

Warren Unzicker, a city redevelopment staff member, told council the project has been under way and that remaining eligible hard costs for plumbing, electrical and HVAC would be covered by the recommended $50,000 incentive. "This is a great addition to our MRA District," Unzicker said during the council meeting.

Unzicker and the developer described the work as a near‑complete renovation including new plumbing, electrical, mini‑split heating and cooling, roof, windows and stucco. Staff estimated total renovation costs around $500,000, projected construction gross receipts tax (GRT) of about $16,500 and annual rental income from the completed project of roughly $260,000. The developer indicated four units will initially be furnished short‑term rentals and said he envisions converting more units to that use over time.

City staff and council members framed the award as a two‑part public benefit: removing blight adjacent to the civic center while preserving and adding rental housing in the MRA. City leadership also noted housing in the MRA supports daytime population and retail activity downtown even though ongoing rental income is GRT‑exempt. Finance staff confirmed the city expects to capture some GRT from the construction activity but not from ongoing rent.

Councilor Rogers moved approval of the incentive; the motion was seconded and the council approved the incentive request unanimously. The incentive will be funded from the community transformation and economic diversification fund as recommended by the MRA.