Andover approves $24 million IRB financing for AV (Buffalo Ridge) apartments

The Andover City Council on Dec. 9 adopted an ordinance authorizing the issuance of $24,058,010.45 in industrial revenue bonds to finance construction, furnishing and equipping of a multifamily housing facility tied to the AV (Buffalo Ridge) apartments project.

City staff and bond counsel said the project has been in the city’s pipeline since 2022 and that phase 1 is complete and leased. The bonds were described as the final financing step to allow the developer to close without placing the completed portion of the project fully on the tax rolls next year. In 2022 the council approved a resolution of intent that included a 70% tax abatement; tonight’s ordinance was the final authorization needed for issuance and related bond documents.

Council discussion noted past delays driven by changes in ownership and construction hiccups. City attorney JT Klaus and staff said the new developer assumed prior obligations and that phase 2 may be delayed into mid-2026.

Councilmember Homer moved the ordinance; the motion passed 5-0. The ordinance authorizes bond issuance and the related documents necessary for financing and closing.

What happens next: city bond counsel will complete final documents and the developer may close on bonds; if the developer does not proceed a completed portion of the project would be placed onto the tax rolls.