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North Mankato schedules hearing on Norwood Redevelopment TIF expansion
Summary
The council set an April 21 public hearing for a developer request to expand Tax Increment Financing assistance for the Norwood Redevelopment, increasing assistance from $2.6 million to $5.7 million and shortening the term from 26 to 17 years.
The North Mankato City Council on Feb. 3 set a public hearing for 7 p.m. on April 21 to consider a proposed modification to Tax Increment Financing (TIF) District No. 2-2 related to the Norwood Redevelopment.
City Administrator McCann told the council the developer, 1111 Holdings, is proposing additional commercial space, a mixed-use building and a hotel as part of the redevelopment. The developer’s request would raise the TIF assistance cited in staff materials from $2.6 million to $5.7 million and would shorten the district’s term from 26 years to 17 years because of the increased taxable value anticipated from the project.
Attorney Maren Magill (Taft Law), who joined the meeting by Zoom, confirmed the developer is reviewing draft business-subsidy agreements and is asking the city to modify the existing TIF plan to accommodate the additional development. Council Member Oachs moved to adopt Res. No. 12-25 calling the public hearing; Council Member Peterson seconded and the motion carried with Council Members Peterson, Oachs, Whitlock and Mayor Carlson voting aye.
Why it matters: expanding the TIF would increase public financial assistance tied to a specific private development and could accelerate the district’s capture of increment revenue by shortening the repayment term. The council’s decision at the public hearing could affect how much tax increment revenue is available for other city priorities during the life of the district.
Next steps: the council will hold the public hearing on April 21, 2025, at 7 p.m., at which members of the public may comment and the developer’s draft subsidy agreements will be available for review.
