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Cottage Grove EDA moves to terminate Northpointe Industrial TIF and request decertification
Summary
The EDA approved a fourth amendment to the Northpointe Industrial development contract acknowledging completed improvements, terminated the TIF note, and passed resolutions to terminate the amended contract (Res. 2025-003) and request county decertification of TIF District No. 1-20 (Res. 2025-004).
The Cottage Grove Economic Development Authority voted Dec. 2 to accept a fourth amendment related to the Northpointe Industrial project (TIF District No. 1-20), terminate the associated tax increment financing note, and request decertification of the district.
Stacy of Ehlers reviewed the district’s history: the city created the TIF District in 2021 to support public infrastructure to serve a 236-acre industrial site, including roads, utilities and roundabouts. The original pay-as-you-go TIF note contemplated up to $12.1 million to finance those improvements. After construction and updated projections, prior amendments reduced the amount and extended timelines; to date the project has generated approximately $1,000,000 in tax increment payments and delivered roughly $11.8 million in public infrastructure and first-phase buildings.
Stacy said the fourth amendment acknowledges the work completed to date, ends the outstanding TIF note, and aligns the city’s actions with state law that requires decertification of a district when there are no outstanding obligations. "If you don't have an outstanding obligation in a district, you have to decertify," Stacy said, and added that the present action will take the decertification request to the county.
EDA members asked whether developers could seek additional payments after decertification; Stacy said termination reconciles obligations and there is no recourse to request further payments once the district and note are terminated. The EDA adopted the fourth amendment to the amended and restated contract for private development, approved Resolution 2025-003 to terminate the amended contract and TIF note, and approved Resolution 2025-004 to request decertification of Tax Increment Financing District No. 1-20.
Stacy noted the project had produced jobs and initial infrastructure benefits: "They've received about $1,000,000 in tax increment payments to date," she said, and the completed improvements will be captured as taxable value for the 2026 tax year once decertified.
