Austin City Council Approves Key Tax Incentive for Housing Project
- Meeting Overview:
The Austin City Council, in its recent meeting, approved several measures, including a tax abatement for a construction project and a resolution to amend a Tax Increment Financing (TIF) district, paving the way for further development in the city. The council also addressed ongoing concerns with Metronet, utility contracts, and multiple property appeals.
A key decision involved the council’s approval of a tax abatement application for Bigalow and Lenin Construction’s project on Place Northeast in the Nature’s Ridge Subdivision. Valued at approximately $330,000, this project aims to enhance residential options in the area. The approval came after a public hearing where no objections were raised, leading to a unanimous 7-0 vote in favor of the application.
Another focal point was the resolution to amend TIF District number 16 for the Mill on Main project. The council discussed the proposal from Nate Stencil, which outlines Phase 2 of the project. This new phase will add 103 units to the existing 93, with an estimated construction value of $20.6 million. The amendment allows for a 90% rebate of the tax increments back to the developer, a move designed to facilitate construction financing amid rising costs. Stencil addressed the council, emphasizing the necessity of this financial support due to increasing construction costs and interest rates. Council members acknowledged the positive feedback from the community regarding the project’s first phase and expressed appreciation for Stencil’s investment in Austin. The completion of Phase 2 is anticipated by early 2026.
The council also delved into the complexities of a proposed ordinance repeal related to Metronet’s transition to a fiber-only system. Although the repeal would not affect existing fiber service agreements with public facilities, which remain intact until 2036, concerns were voiced over Metronet’s service quality and responsiveness. Council members weighed the pros and cons of maintaining leverage over the company, given the limited legal framework to enforce specific service requirements. Ultimately, the council moved towards a resolution on the ordinance repeal, stressing the importance of clarity and accountability in the settlement agreement, despite telecommunications law constraints.
Following the Metronet discussions, a resolution to approve a settlement agreement was tabled for future consideration. Meanwhile, the council approved the preparation of an ordinance extending an existing power sales contract with Austin Utilities, extending its term from 2030 to 2050. This proposal passed without opposition after assurances from utility representatives.
The meeting also featured several property-related appeals. A property owner sought approval to install a six-foot privacy fence on a corner lot, a request that was granted following recommendations from the Planning Commission. Additionally, an appeal from Moose 701 Properties, LLC, concerning a large internally lit sign, was approved despite compliance concerns. The council member abstained from voting, but the motion carried.
In another development, the council approved a preliminary design proposal for the Whitewater project. With a majority vote of 6-1, the resolution allows for the continuation of design work funded by a combination of city allocation and private donations totaling $85,000. The design phase will refine the findings from a feasibility study, focusing on geotechnical and floodplain assessments. Concerns about the urgency of the project were addressed, with the assurance that the city’s dam is currently structurally sound.
The council accepted donations amounting to $236 from the Spam Museum for downtown conversation benches and $115,000 from the Horal Charitable Trust for Fourth of July activities. This motion passed with a 6-0 vote, one member abstaining.
Towards the end of the meeting, council members expressed condolences for a fellow member absent due to a family bereavement. Updates from the Parks and Recreation Department announced upcoming community events, while another member thanked residents for their patience with park closures due to flooding. A report on ongoing multifamily unit developments highlighted the city’s expanding housing options, and concerns about mosquito control were discussed, focusing on communication challenges with the contractor.
Steve King
City Council Officials:
Jeff Austin, Laura Helle, Rebecca Waller, Mike Postma, Jason Baskin, Paul Fischer, Joyce Poshusta
-
Meeting Type:
City Council
-
Committee:
-
Meeting Date:
07/15/2024
-
Recording Published:
07/15/2024
-
Duration:
41 Minutes
-
Notability Score:
Routine
Receive debriefs about local meetings in your inbox weekly:
-
State:
Minnesota
-
County:
Mower County
-
Towns:
Austin
Recent Meetings Nearby:
- 12/11/2025
- 12/11/2025
- 330 Minutes
- 12/11/2025
- 12/11/2025
- 134 Minutes
- 12/10/2025
- 12/10/2025
- 89 Minutes