Wyoming council backs TIF support letters for two affordable housing proposals

The Wyoming City Council on July 2 approved separate resolutions expressing conditional support for tax‑increment financing (TIF) for two proposed affordable housing projects if they secure Minnesota Housing financing and tax credits.

For a 63‑unit senior rental project by Duffy Development, city financial analyst Baker Tilly presented preliminary figures: a total development cost of about $23 million with estimated construction costs of roughly $17 million and projected total tax‑increment revenue of about $782,000 over a 26‑year TIF district. Baker Tilly summarized a not‑to‑exceed present‑value TIF pledge of approximately $320,000 using a 6% discount rate. The project would require MHFA tax‑credit awards before final TIF terms are set; staff emphasized any TIF agreement would include income and rent restrictions and annual compliance certification for qualifying units.

"The estimated tax increment dollars of about $782,000 over the maximum 26‑year term" was presented by Michaela Hewitt of Baker Tilly as the basis for the council’s resolution of support.

Council members questioned management and fiscal impacts. One council member raised concern about the long 26‑year term of a TIF and said taxpayers may not see new revenue for decades; staff responded that TIF typically captures growth on previously low‑value land and that permit fees and other upfront charges would still flow to the city.

Separately, staff presented a proposal by Reuter Walton Development for a 72‑unit workforce housing project. Baker Tilly estimated total development costs near $25.38 million, projected total tax‑increment receipts just under $900,000 over a 26‑year term and a present‑value TIF cap near $356,000 at a 6% discount. The Chisago County HRA/EDA has conditionally awarded a $200,000 loan at 1% interest for 20 years, contingent on the city’s support.

Councilors voted to approve resolution letters of support for both proposals; the approvals were intended to help the projects qualify for Minnesota Housing funding and other gap financing. Final TIF commitments will be considered only if the projects receive tax credits and the city negotiates a TIF agreement with income/rent and reporting requirements.

The council emphasized that normal permit fees, park dedication, WAC/SAC charges and other standard municipal fees would still apply to any development and noted those revenues would be realized even if TIF is used to address funding gaps.