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EDA and council approve CityWalk Apartments TIF district to spur high-density housing downtown
Summary
The Rochester EDA and city council approved an economic development and TIF financing plan for the CityWalk Apartments project, a proposed ~340-unit high-density housing development near a future high-frequency transit station; the developer committed to preserving 76 nearby naturally occurring affordable units under a 20-year county program.
The Rochester Economic Development Authority and Common Council voted on May 19 to approve the economic development plan and tax-increment financing (TIF) district for the CityWalk Apartments redevelopment on the corner of 2nd Street SW and 6th Avenue SW.
City staff described the project as a 13-story, approximately $86 million redevelopment that would yield about 340 market-rate units (staff and the developer described a breakdown of roughly 250 market-rate units plus 90 short-term rental units in some project materials) with underground structured parking and public-realm improvements. Josh Johnson (city staff) said the developer worked with staff to include an affordability strategy: two adjacent properties currently providing naturally occurring affordable housing would be enrolled in Olmsted County's 4d program to preserve roughly 76 units as affordable for two 10-year renewal cycles (20 years total).
Justin Fincher, vice president of development for Reuter Walton, summarized the development schedule and amenities and said the team planned to break ground in late 2025 or early 2026 and complete construction in roughly 24 months. "We couldn't be more excited about the opportunity, about the location," Fincher said.
Staff and council members discussed the TIF term length and the but-for analysis (financial viability without TIF). City staff noted the request followed recently updated TIF policy guidance and that independent financial review (Baker Tilly) had been conducted. Council members asked for continued transparency on the financial analysis and for development agreements to ensure the affordability and maintenance of the existing naturally occurring affordable housing units.
The EDA/council vote adopted the redevelopment TIF district and economic development plan; the motion passed unanimously. City staff said the project would contribute to downtown housing supply and that a number of other projects currently in the pipeline should yield broader tax-base growth in coming years.
Next steps: staff will finalize the development-assistance agreement and return with project-level controls, timelines and evidence of the negotiated affordability commitments.
Provenance: staff introduction (beginning at the EDA public hearing) through the unanimous adoption of the plan in the EDA roll call.
