The council’s decision followed a public hearing where experts highlighted the growing demand for senior housing in Willmar and Kandiyohi County. Michelle Morasky from Kandiyohi County Economic Development emphasized that the county’s senior population is expected to increase by 25% by 2030. The project site, strategically located near residential areas and essential amenities like medical facilities and grocery stores, will not only address housing needs but also generate significant long-term tax revenue and create jobs.

However, the 26-year term sparked debate among council members, with some expressing discomfort over the extended commitment. Traditionally, TIF projects in Willmar have not exceeded a 15-year term. Roger Fink from Trident Development explained that while the TIF district spans 26 years, the increment stream would not start until the following year, effectively making the financial obligation last approximately 25 years. He noted the potential for the TIF obligation to be fulfilled earlier than anticipated, depending on property tax increases.

The council’s discussion also delved into the pooling concept within the TIF plan. This mechanism would allow the city to retain a portion of the tax increment to address other municipal needs, potentially funding projects outside the TIF district. Questions were raised about the allocation of pooled funds, with clarification provided that they could be used city-wide, as long as they met TIF guidelines.

In addition to addressing senior housing needs, the council acknowledged the necessity for affordable housing across the city. The TIF plan includes income restrictions, requiring at least 20% of the units to be occupied by families with incomes not exceeding 50% of the area median income. This aligns with the city’s goal of maintaining affordable housing options for its residents.

Beyond the TIF district discussion, the council meeting also covered various other topics. A key item on the agenda was the proposed gas franchise ordinance with CenterPoint Energy, which aims to replace an older agreement from 2004. The ordinance would grant CenterPoint exclusive rights to provide natural gas services in the city, ensuring compliance with safety standards and regulating operations, including maintenance and fee structures. The council scheduled a public hearing for the gas franchise fee ordinance, acknowledging that the previous ordinance must pass for CenterPoint to continue operations in the city.

The council also addressed the contentious issue of establishing a franchise fee, which has been under consideration for years. The proposed fee, projected to generate $600,000 in revenue, would impose a $5 monthly charge on residents and vary for commercial entities. Despite previous rejections in 2007 and 2014, the proposal is being revisited in light of inflation and changing energy usage patterns. Some council members voiced strong opposition, citing the financial burden on taxpayers amid current economic conditions.

In another matter, the council approved the transfer of a THC product license to Honix Holdings LLC following a change in business ownership. This decision was made unanimously, with no debate.

The meeting also featured updates on the city’s financial status, with the finance director noting that property tax collections and Local Government Aid are on track. The council approved a wastewater rate analysis study to plan for future capital improvements and operational costs, addressing concerns over balloon payments scheduled to begin in 2025.

Discussion then turned to the city’s comprehensive plan, which serves as a guiding document for city initiatives and development. The plan, last updated in 2009, is undergoing revisions to address current needs and development barriers. The comprehensive plan will cover topics such as land use, housing, economic opportunities, and natural resources. Public engagement is a key component, with multiple community events planned to gather input.

The council also considered the potential permitting of Utility Task Vehicles (UTVs) within city limits, prompted by a resident’s interest. Staff reviewed ordinances from other cities and raised safety concerns, recommending against a permitting process for UTVs due to stability and visibility issues.