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Council approves TIF plan for Timber Ridge assisted‑living development in Baxter
Summary
The Baxter City Council approved a tax increment financing (TIF) plan and a development agreement framework for Timber Ridge of Baxter, an 80‑unit mixed‑income assisted‑living and memory‑care project, authorizing staff to finalize terms and allowing up to $1.1 million (present value) in pay‑as‑you‑go assistance to the developer.
The Baxter City Council approved a tax increment financing plan and a substantially framed development agreement for Timber Ridge of Baxter, an 80‑unit mixed‑income assisted‑living and memory‑care development, following a public hearing.
Shane, a municipal finance consultant working with the city, told the council the staff recommendation is a pay‑as‑you‑go TIP note with a present value of $1.1 million, financed at an assumed 6 percent and derived from 90 percent of the tax increment generated above the base value, payable for up to 20 years. "The TIP note to be 1.1 million in present value finance 6% derived from 90% of the TIP generated from the project above the base value up to 20 years," Shane said. He emphasized the structure does not pledge the city's general fund and includes a 10 percent allowance for city administrative costs and an IRR look‑back at stabilization.
Roger F, the applicant representing Tri Development, described the project as "about $24 million investment" and said the company is finalizing details with the city; he told the council his legal counsel has not yet completed a detailed review of the development agreement. Roger F said the developer and city staff expect to finalize a minimum assessment/look‑back mechanism and a form for certifying qualified residents for the income‑restricted units.
Why it matters: the approved TIF plan lets the city capture and rebate incremental property taxes from new development to reimburse eligible infrastructure and development costs tied to the project. Shane explained the TIF plan is a statutory planning document that sets where and how tax increments may be used, and the draft development agreement is intended to commit the city to pay only what tax increments are generated by the project.
Council action and next steps: after the public hearing the council voted to approve the TIF district and associated TIF plan and to adopt a second resolution allowing the city to reimburse itself for initial district‑related administrative costs (typically capped at 10 percent). The transcript records the motions and that each "motion carries," but it does not include an individual roll‑call tally in the recorded minutes. Staff said a final development agreement will be completed with the minor edits discussed, and the developer will complete its legal review.
Project and limits: Shane said the plan treats TIF assistance as a gap‑filler and includes limits (a 20‑year pay‑as‑you‑go cap in the agreement and a stabilization look‑back with a 16 percent IRR threshold). The project is described as an 80‑unit mixed‑income assisted‑living and memory‑care facility to be built with on‑site streets and utilities installed by the landowner and reimbursed under the agreement. Roger F said Tri Development expects the project to represent roughly $24 million of private investment in Baxter.
The council approved both resolutions and directed staff to finalize the development agreement substantially in the form provided in the packet. The council and staff indicated they expect to return with any final edits and that the development will proceed through the city's standard project and stabilization reviews.
