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Council approves bonds, EDA establishes TIF to support 149-unit Commons at Bear Creek project
Summary
Council approved a resolution to issue tax-exempt conduit multifamily housing revenue bonds for the 149-unit Commons at Bear Creek and the EDA established TIF District 88-1 to provide up to $1.3 million in principal; developer and staff said the project will income-average to 60% AMI and include a range of unit sizes.
The Rochester City Council voted to adopt a resolution authorizing the issuance of tax-exempt conduit multifamily housing revenue bonds for the Commons at Bear Creek, a 149-unit affordable rental development proposed by Rochester 1 Limited Partnership. Staff told the council the financing award followed multiple state allocation cycles and that bonds had been issued on 01/12/2026.
Brent Svendy, community involvement staff, said the project qualifies as a "qualified rental housing project" and uses income averaging so the portfolio will average 60% of area median income (AMI) while including units at roughly 30%, 50%, 60% and 70% AMI. Svendy outlined a unit breakdown staff provided: three units at 30% AMI, 27 at 50% AMI, 83 at 60% AMI and 36 at 70% AMI.
James Riley, a vice president and project partner with Lincoln Avenue Communities, said the developer expects the combination of lower-cost tax-exempt bond financing and 4% housing tax credits to generate equity needed to build the project and helped the financing clear state allocation hurdles. "We're extremely excited about the prospect of being involved," Riley said.
At a later Economic Development Authority hearing, staff proposed establishing Development District 88 and Tax Increment Financing (TIF) District 88-1 and recommended up to $1.3 million in TIF principal (with a 2.5% annual inflator on assessed value in the pro forma) paid on a pay-as-you-go basis for roughly 19 years or until the $1.3 million cap is met. Staff and the EDA noted the current site value near $1.2 million and an estimated post-development value of about $28.2 million.
Council members who spoke supported the project as a way to add rental housing downtown; the council and the EDA took separate motions to adopt the bond resolution and to establish the TIF district and development-assistance agreement. Both actions passed by voice vote.
