Elk River City Council talks TIF at work session

Elk River Star News

Jackson Hills Residential Suites and Elk River Lodge Suites applied for tax increment financing, but when it came to the Elk River Lodge Suites, the discussion became heated.

One developer submitted two different proposals — one to build a 40-unit affordable housing complex at Sixth Street and Jackson Avenue and the other to convert the Elk River Lodge site into affordable housing.

City staff determined that as a standalone project, the Elk River Lodge Suites proposal did not meet the city’s policy for providing TIF.

“It seems to me that you’re asking us to give you TIF dollars for something you’re already required to do,” Councilman Matt Westgaard said. “You’re required to bring your building into code and you’re asking the city to give you tax increment financing to pay for that, and I don’t think that’s right.”

The Elk River Lodge site was occupied previously but had not been in line with its permitted use. Changes are already underway to convert the site into a housing unit.

“The project has already commenced,” Mayor John Dietz said. “You’re doing things you’re required to do because you need to meet the ordinance. I don’t know why we’re getting involved in helping you pay for that. You chose to make it an apartment building.”

However, the council did see merits in the Jackson Hill project for the possibility of a TIF district. Though the developer had requested the TIF be in place for 26 years, city policy limits districts to 15.

The TIF for the Elk River Lodge Suites project was rejected, while the Jackson Hills Residential Suites will come before the council for a public hearing on Feb. 20 for the 15-year TIF district.