Maple Plain approves TIF extension for 85-unit townhome project
The Maple Plain Economic Development Authority unanimously agreed Wednesday to extend tax financing for an 85-unit rental townhome development on Highway 12, allowing the project to move forward despite unexpected construction costs totaling $1.5 million.
Equinox Development requested an extension of its Tax Increment Financing (TIF) district from 20 to 26 years for the project at 5330 Highway 12. TIF is a financing tool that allows cities to redirect new tax revenue generated by a development back to the developer for a set period, helping make projects financially feasible.
The developer faced unforeseen expenses, including $650,000 for soil corrections and $225,000 for a sidewalk connection along Highway 12 that the city requested. The six-year extension would provide approximately $650,000 in additional financing to help cover these costs. Staff explained that without the TIF extension, the project likely wouldn't move forward.
The authority gave unanimous consensus direction to staff to proceed with re-noticing a public hearing for the extended TIF duration. Commissioner Duca expressed support, calling the sidewalk a "good responsibility" that should happen. However, Commissioner Moscowski raised a question about whether a shorter extension—such as 23 years instead of the maximum 26—might be sufficient, suggesting staff explore whether the full extension is necessary.
City staff emphasized that the sidewalk connection serves a broader purpose beyond the development itself. It would extend the city's streetscape along Highway 12 and help define downtown as a distinct district, consistent with the city's comprehensive plan. Staff noted that the city, school district, and county would not lose existing tax revenue under the TIF arrangement—they would simply receive new revenue more slowly, only after the TIF period ends.
The public hearing will likely be rescheduled for September, giving the city time to re-notify residents and stakeholders. The City Council will make the final decision on whether to approve the TIF extension.
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Votes (1)
TIFF District 22 Term Extension Request
The developer, Equinox Development, requested an extension of the TIF district term from 20 to 26 years for their 85-unit rental townhome project. This was prompted by unexpected additional costs, including $650,000 for soil corrections, and an estimated $225,000 for a city-requested sidewalk connection along Highway 12. Staff clarified that the EDA's role was to provide direction to the City Council, which holds the final approval. Commissioners largely supported the extension, recognizing the project's economic benefits and the value of the sidewalk as a public amenity, despite some questions about exploring a shorter extension than the maximum 26 years. Staff indicated that the total cost increase for the developer was about $1.5 million, with the TIF extension addressing a portion of that need. The extension would require re-noticing the public hearing, likely pushing it to September.
Notable Quotes (4)
What doesn't go to the city, the school district, and the county initially or what percentage will go back to the developer is the incremental increase in taxes that are generated as a result of the development happening. which is why we're able to utilize the tax increment financing is because the test is if not for the tax increment financing, you wouldn't get this project.
By connecting a sidewalk to this development, I really do think there is some value to the city to extend our streetscape along Highway 12, which is consistent with our comprehensive plan — and is something that I think starts to help to define downtown as its kind of unique district versus everywhere else on Highway 12.
Mark, our 20 years was based on need versus the maximum amount.' You said that up front. You clearly articulated that there's an additional need that goes beyond the the 650 extra thousand worth of tip. I'm fine with the extension to 26. I think to the point uh you made too on the sidewalk. I think that's just a good responsibility. I think it it ought to happen.
I appreciate that in the beginning, you know, we were looking at what the need is and that need obviously changed... 'can we look at this and is there option C? Could we do 23 years? Would that be enough to still do the project?'
Ordinances & Resolutions (3)
Tax Increment Financing district for the Equinox Development project.
Mechanism used to support the Equinox Development project.
City plan that the proposed sidewalk extension is consistent with.
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