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North Mankato City Council sets 1.591% proposed levy, schedules TIF hearing for former Taco John’s site and approves rental-license sanction
Summary
At its Sept. 15 meeting, the North Mankato City Council set a proposed tax levy increase of 1.591%, adopted a resolution calling a Dec. 1 public hearing on a TIF proposal for 1601 Lor Ray Drive (the former Taco John’s) and approved a $500 fine and minimum 30-day suspension for a rental-license violation.
On Sept. 15, 2025, the North Mankato City Council voted to set a proposed tax levy increase of 1.591% and adopted a resolution calling a Dec. 1 public hearing on a tax increment financing plan for redevelopment at 1601 Lor Ray Drive, the site of the former Taco John’s.
City Administrator Sean McCann told the council the redevelopment project is estimated at about $2.6 million and that the developer is requesting $485,000 in pay-as-you-go TIF over 20 years; Tammy Omdal was scheduled to review the proposal at the Dec. 1 hearing. Council Member Jeffrey Steiner moved to call the hearing; Council Member Matthew Peterson seconded the motion, which passed unanimously.
The council also approved findings of fact and ordered sanctions in a rental-license case for 1765 Northway Drive, Unit #201. Attorney Kennedy reported the matter had been reviewed at the Sept. 2 special meeting; the council approved a $500 fine and imposed a minimum 30-day suspension of the rental license until the required inspection is completed.
On the proposed levy, Council Member Matthew Peterson moved, with Council Member Steiner seconding, to set the proposed tax-levy rate increase at 1.591%. The motion passed 4–1; Council Member Oachs cast the lone dissenting vote. The vote establishes the proposed rate for later finalization through the statutory levy-adoption process.
Votes at a glance: Res. No. 85-25 (call public hearing for TIF at 1601 Lor Ray Drive) — motion passed unanimously. Rental-license findings and order for 1765 Northway Drive, Unit #201 — motion passed unanimously (sanction: $500 fine and 30-day minimum suspension until inspection). Res. No. 86-25 (set proposed tax levy increase at 1.591%) — motion passed 4–1 (Oachs nay).
Why it matters: The TIF would subsidize part of a private redevelopment through a pay-as-you-go mechanism over two decades; the amount requested ($485,000) and the estimated project cost (about $2.6 million) were presented to the council. The proposed levy sets a starting point for property-tax calculations that will be finalized in subsequent proceedings.
Next step: The council scheduled a public hearing for the TIF proposal on Dec. 1, 2025, at which staff and the developer will present details. The proposed levy must follow the statutory notice and final-adoption process before taking effect.
