Alexandria considers tax break for $8M apartment project
The project, “Golf View Apartments,” would be built on the west side of North Nokomis/County Road 44 near the intersection with Green Lane, west of 12 existing townhomes.
Developers who want to construct an $8 million, three-story apartment building in north Alexandria have applied for tax increment financing.
At its meeting Monday night, the Alexandria City Council set a public hearing date to consider the request from Meadow Homes, LLC. It will take place at 7:15 p.m. on Monday, Feb. 14.
The project, “Golf View Apartments,” would be built on the west side of North Nokomis/County Road 44 near the intersection with Green Lane, west of 12 existing townhomes. The address is 1900-1944 North Nokomis NE.
The 53-unit, 82,778-square-foot building would accommodate renters of all ages who are looking for more flexibility in their lives through less homeownership responsibilities, according to the developers.
"Golf View will serve area businesses with housing options for their employees that currently don't exist," the developers added. "With the current rental housing stock at 99% occupancy, there is a shortage of available options for employees looking to move into the area for work. This will also free up single family homes for growing families."
As part of the TIF requirements, at least 20% of the units must be occupied by lower-income residents who make no more than 50% of the area’s median income.
In its TIF application, Meadow Homes lists three partners in the project – Mox Gunderson of Wayzata, Dan Linnell of Lino Lakes and Mike Gunderson of Detroit Lakes. They said the project would provide a “high-quality rental housing option in a supply constrained market with a growing population and employment base.”
With housing TIF, property taxes are frozen at the property’s current amount, for a specified amount of time, up to 26 years. The tax difference between the undeveloped land and the land after development – the increment – is used to help finance the project.
For this project, the TIF would amount to about $700,000. The developers said that without TIF, the project would not be financially feasible. The only alternative would be to build a strictly market rate apartment complex, according to the developers.
The total size of the Golf View Apartments site is 288,367 square feet. The project calls for two driveways, along with underground parking, surface parking, underground storm water retention and other accessory uses in a medium-density residential zone.
Initially, the developers proposed a 71-unit apartment complex but through feedback, density concerns, and a traffic study, they reduced it to 53 units.