TIF, plan in place for Downtown Crossing
The tax increment financing district and spending plan are in place for the redevelopment area behind Ace Hardware store. Construction is expected to begin in June.
The Detroit Lakes Development Authority held public hearings -- even though no one from the public attended -- regarding the 24,000 square feet that includes about $2 million in building costs, which the city has sold to DLM Downtown Properties LLC for redevelopment, and about $1.5 million in public improvements with sewer, water, streets, etc.
Using up TIF monies that weren't in use throughout the city, the DLDA gathered the districts together and put the funds to use on the redevelopment area that has now been named Downtown Crossing. According to state law, the district monies have to be used by the end of the year, and construction must start on the site before July 1.
Using those available TIF monies of $339,350, the DLDA plans to use them for land acquisition, building demolition, parking and infrastructure, "which we've already done," Community Development Director Larry Remmen said.
With the tax increment financing district the DLDA established for the building project, along with the $339,350 from the consolidated districts, the DLDA will have nearly $800,000 in TIF money for the redevelopment project, with $410,000 coming from the newly established district. Over the 25-year life of the TIF, nearly $1.1 million would actually be generated, but $135,000 would go to the school district and $553,000 to the county.
Money from the tax increment financing will go for principal and interest on bonds that are financing the project, the portions of the project including infrastructure and building demolition, insurance and other uses outlined and agree upon by the authority.
Also at the DLDA meeting Tuesday afternoon, members agreed to have a meeting with downtown business owners to make them aware of upcoming parking and streetscaping assessments. No meeting has been set yet, although business owners are welcome at the community Development Committee meeting on Thursday at 4 p.m. to discuss upcoming assessments.