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SCI modifies TIF proposal LITTLE FALLS CITY COUNCIL Staff Writer Sand Cos. Inc. of Waite Park gave it another shot Monday and submitted a revised tax-increment financing proposal to the Little Falls City Council for the former Larson Motor Service property along First Street Northeast in Little Falls.
The council heard from Jamie Thelen, president of SCI, during its planning meeting on the revised proposal. The development company wants to build an upscale housing community for senior citizens 55 and older.
The city council took no action on the proposal, said Little Falls Administrator Richard Carlson in a telephone interview late Monday.
The proposal changed from a four-story cooperative complex to 32 two-story townhomes that would be sold, not rented. The development company also lowered the number of years it would need a tax-increment financing district at the site.
TIF is a method of financing public or private improvements that are needed to serve new development. While the existing tax on the property continues to be paid, the increase in tax value of the property is returned to the developer for a set period of time to help pay off the cost of the development.
The company requested the financing option to help clean up the Larson Motor Service property. The financing option would help with demolition costs, environmental cleanup and substantial site work that would need to occur before the actual development could begin.
SCI changed its housing proposal to address the city's concern with the TIF district. On Feb. 28, a city council motion failed by a 4-4 vote to create a TIF district. The council members who voted against the motion were opposed to the duration of the TIF district and the dollar amount.
SCI came back to the city council on March 7 to ask council members to reconsider their vote, but no action was taken.
The revised proposal is to build no more than 32 townhomes. The original proposal was to build eight townhomes and a 49-unit housing development for seniors that would have been part of a cooperative.
The new proposal reduces the amount and length of the original TIF request from $1.5 million for 25 years to $800,000 for 15 years.
If the TIF district is approved and SCI goes through with its housing development, it plans to construct 16 of the 32 townhomes, by the end of 2006. The remaining 16 townhomes would be completed by the end of 2007.
JENNIFER STOCKINGER can be reached at jennifer.stockinger@brainerddispatch.com or 855-5851.
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