November 9th, 2005

NORTHFIELD — Although John Mathern and Mendota Homes have invested months of planning and work into the Riverfront Redevelopment site, a huge hurdle was leapt when the Northfield City Council gave The Crossing a green light on Monday by endorsing a final development agreement and providing tax increment financing (TIF) for the project.

Most of Monday’s discussion about The Crossing involved the amount of TIF money the project would need. Ultimately, the city will provide about $3.626 million in TIF to assist with the costs of property acquisition, demolition, site grading, utility relocation and extraordinary costs incurred by soil correction and contamination.

In October, a public hearing was held to discuss TIF and the project. There was little public input.

On Monday, Brian O’Connell, the city’s community development director presented a modification of the programs and plans related to the TIF financing.

Originally, it was determined that the project would need about $2.9 million in TIF assistance. This amount was based on the original project estimates provided by Mendota Homes. However, the final amount has increased to $3.626 million “based on more accurate and detailed project costs from contractor price quotes,” according to the staff report provided to the city council.

Although the resolutions involving Mendota Homes and The Crossing were unanimously passed by the council, they did not come without several questions from councilors — ranging from the usage of local contractors on the project to the mechanics of TIF assistance and where the money involved with this project will ultimately go.

Mayor Lee Lansing said these questions are important and relevant, partly because of the size of the project.

“This is by far the largest public assistance project we’ve ever done,” he said.

However, after questions were answered by O’Connell and the city’s financial and legal advisors for this project, Councilor Jim Pokorney asked Mark Ruff, the city’s financial advisor from Ehlers and Associates: “It looks like a pretty good deal, wouldn’t you agree?”

“Yes,” Ruff replied.

– Michelle Kubitz

Reprinted with permission from the Northfield News.