The Grand and Victoria Redevelopment Project involves transforming existing substandard structures into a mixed-use building, featuring 90 rental apartments alongside 12,800 square feet of commercial space. The TIF district, which must comply with statutory requirements, aims to facilitate developments that would be unviable without public financial support. During the meeting, it was confirmed that the project met the “but for” test.

The developer attending the session outlined the financial challenges of securing funding for market-rate housing projects in the current economic environment, particularly in the St. Paul area. The developer also addressed misconceptions regarding the financial risks associated with TIF districts, clarifying that developers, not city taxpayers, bear these risks. Developers cover upfront costs and are reimbursed over time through tax increments. Additionally, the development agreement includes provisions to reassess the financial assistance’s appropriateness periodically, potentially reducing support if deemed excessive.

The proposed TIF district is anticipated to generate approximately $363,076 annually starting in 2030, with total projected tax increments exceeding $9 million over its lifespan. The district’s budget forecasts a taxable completion value of $26.5 million, higher than the current assessed value. Nearly $3 million of the budget is allocated for constructing affordable housing and other qualifying public improvements, with the project requiring roughly $2.956 million in TIF assistance. The timeline for the project stipulates construction beginning in February and concluding by the summer of 2027.

In a related development, the Ames Lake Property Flood Mitigation Project was introduced, focusing on converting a flood-prone property into a community asset with improved stormwater management and public amenities. Owned by the authority for nearly three decades, the property has a history of flooding issues. The watershed district completed a feasibility study, proposing enhancements such as pathways and seating areas to transform the area into usable community space, rather than leaving it as an unusable flood zone. The partnership with the watershed district is expected to reduce flood risks and enhance community infrastructure.

The meeting also included routine approvals and public hearings for resolutions related to property sales and conveyances. The authority approved short-term extensions to parking operation agreements across several municipal ramps, a necessary step as the authority prepares to release a request for proposals for new parking ramp operators. Public hearings were held for resolutions concerning the sale of a vacant lot to Iglesia Ni Cristo Church and the conveyance of parcels in Chestnut Plaza to the City of Saint Paul. Both resolutions passed without public opposition.