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Council backs intent to provide TIF support for 17-lot development after debate over affordability
Summary
After an extended discussion about whether tax-increment financing (TIF) lowers lot prices or only pays for infrastructure, the Atkins City Council approved a resolution expressing intent to provide economic-development support to a 17-lot residential project (Stoneridge/Keystone Ridge), with TIF certification targeted for December 2025.
The Atkins City Council voted to approve a resolution expressing the citys intent to provide tax-increment financing (TIF) support to a proposed 17-lot residential development (referred to in discussion as Stoneridge/Keystone Ridge). The resolution confirms council interest and allows staff and bond counsel to prepare formal agreements.
A developer representative told the council construction costs have risen and that the project needs the citys partnership to move forward: "our cost is going up crazy... we're approaching 1,000,000 and a half dollars," the representative said. Staff (and outside advisers referenced in the discussion) urged a cautious timetable: Maggie Berger from a financial advisory (Spirit Financial/Spear) and bond counsel John Daniels (Dorsey & Whitney) were described as preparing documentation, and staff said TIF certification would be timed for Dec. 2025 to better capture increased valuation.
Council discussion centered on two linked issues: whether TIF money is used to "buy down" lot prices or to pay for public infrastructure that enables development, and whether residential incentives are appropriate given the towns income profile. Staff clarified multiple times that the city's TIF commitment covers public infrastructure (streets, sewer, water, sidewalks, curb and gutter)—not direct purchase of lots. "What the city will pay for through TIF is public infrastructure costs... We're not paying for the lots," the interim administrator said.
One council member moved to table the resolution but the motion died for lack of a second. Another council member moved to approve the resolution; the motion passed on roll call. A council member who voted against the resolution said he remains uncomfortable with the mechanism and requested more information for future decisions.
Staff indicated the TIF structure would be pay-as-you-go tied to future valuation increases generated by the development and would include a low- and moderate-income (LMI) set-aside, though staff said meaningful LMI dollars are likely years away because tax increment accrues as homes are built. Bond counsel and the financial adviser will draft the agreement documents and present them at a later meeting for formal approval.
