Protesting TIF for Pennington Project 26 Jun 12

A Thief River Falls Property Owner has retained legal counsel in a protest over Tax Increment Financing for an Apartment Complex on South Pennington.

A Public Hearing is scheduled July 3rd on proposed TIF Financing for Rocksbury Apartments, a controversial development, with a neighborhood outcry earlier this year after the Thief River Falls City Council overturned a Planning Commission Recommendation against rezoning to accommodate the apartment building.

Mark Grainger, with the Neil Law Firm, says a proposal to approve Tax Increment Financing is like a “slap in the face” to those in the neighborhood who didn’t want the project to go forward in the first place.

Grainger was retained by property owner Karl Bjorkman to uphold a request, urging the City Council to reject Tax Increment Financing on the Apartment Project. In a letter to the City Council, Grainger outlines concerns including public opposition, development outside the City’s Comprehensive Plan, the number of TIF Districts already being supported by tax dollars and the proximity of a nearby conservation project.

If approved, Tax Increment Financing would allow the city, county and school district to reimburse developers money that would have been paid in property taxes to construct infrastructure, generally thought of as below grade.

In a letter dated June 22nd, Grainer outlines Bjorkman’s concerns and urges the City Council to reject TIF Dollars saying it is one thing to build an unpopular project, but quite another to place the cost of that project on “the shoulders of the tax payers.”

  • Againsttiffinancing

    I understand the City is trying to address a shortage in lower income housing in TRF. But there seems to be a rush to take action without thinking it all the way through.

    When the City acted in contradiction to the long term comprehensive plan and voted to re-zone the Pennington Apartment property (overturning the Planning Commission’s decision), it does not seem like it was widely known that at least some of the costs of the project would actually end up falling on the taxpayers. Likewise, when it was discussed that the apartment building location would be across the street from Challenger Elementary, I am not sure it was widely understood that the housing project would qualify, at least in part, for low income housing.

    It seems to me there have been quite a few TIF plans proposed lately. This translates to a lot of tax dollars being spent. It would appear prudent to take a step back, take a breath, and determine whether there are alternatives that fit better into the overall long term plan for the City.

  • Rock67

    The reality is that existing tax payers and property owners pay for TIF projects for the benefit of the developer. TIF designated property is taken off the tax roles for up to 30 years. They receive all the benefits of police, fire, school, infrastucture but contribute nothing in return. The cost to the community for providing basic services increases. Taxes have to go up for existing taxpayers or the city runs in the red (like has happend in so many cases across the U.S.). Contact the Mayor and City Council at http://citytrf.net/council.htm, and the County Commisioners http://co.pennington.mn.us/commissioner/commissioner.asp. Ask them not to approve TIF financing for this project. The Council and Mayor have already approved TIF funding and your tax dollars for an 80 unit complex that will cover demand for the next several years.

  • chokingontaxes

    Dear City Council,
    Use your heads. Enough is enough.

  • RDtune

    Everyone who is concerned about this project being financed with your money, should attend the meeting July 3, at 4:45. If you do not attend the meeting and show your support, then this will continue.
    This is not about objecting to TIF financing. This is about putting a stop to it until we find out what it is already costing the tax payers and what future properties will be taken off the tax roles and how that will burden the taxpayers in the city and the county. If as the Mayor said, “People who spend the money get to pick the site.” We should be able to say where an apartment will be built and how it will be financed because we the tax payers are putting up the money.

    Mike Moore was asked for information on the 9 TIF projects but stated that he did not know when he could provide it because he was too swamped.

    I think we should also question how the city can sell parks. When Southtown was developed the developer was told what piece of land he had to put aside for a park. The developer put the land aside for park area. Now when the city sells the lots is the developer who had to set the land aside going to be paid for that land.

  • Pennresident

    I would like to point out that this is not the intent for TIF. TIF is for urban renewal. It will not enhance property values in the area.

    I would like to ask what the benefit is to the community and the area given that it is not a “blighted area” and the property will be removed from the tax role and will require extra services that exiting tax payers will have to pay for. I would not be opposed to TIF if the area was run down and in need of a make over but this property is not.

    Why not use a portion of the tax dollars for the public pool vs. giving it to an out of town developer?

    I live in this area. What will I get other than frustration due to increased traffic. I cross traffic on my way to work and this can be very difficult on any given school day but much worse in the winter when the roads are slick. I have children that I like to take walking and I end up walking in Southtown or having to drive into town because of the traffic on Pennington Avenue and the lack of a sidewalk.

  • chokingontaxes

    If I build a new house for my family can I not pay county, property, school taxes for the next 25 years as well? I’m pretty sure the community will vote for my approval and pay my share. After the new Greenleaf properties are bulit we have enough apartments and tax free space.Enough is enough.

  • RDtune

    Now I see that the City is putting the lots in Southtown that were set aside by the developer of Southtown out on bid.
    I want to know if the orginal developer that had to set aside the land for a park is going to be reimbursed for that land.

  • whathappenedtoyou

    Between the Annie Park fiasco and now this the city aparently has opened a new real estate department. I didnt know they were in the business of transacting real estate deals. Requiring greenspace and then selling it? Accepting a land gift for a park from Mrs Kjozed and then selling it? Approving the Pennington Ave Apartments rezoning without indication to anyone that they will need TIF (essentially a tax increase to residents) and other inaccurate representaions. There are better ways to handle these situations. You dont have to do things this way. If you want to get out of a hole the best place to start is to stop digging. These are not the people I voted for.

  • historymajor

    If I have this right we have nine approved TIF zones already, going on 10. Of coarse the developers will say they cant build without it when we give it to them every time. Do we get to see the proof or just believe the developers? Based on what we have seen recently from the city leaders there is no reason to believe anything anymore.

  • pissed off

    Who is so stupid as to think we need more low income housing??? Take a drive out to Northland village or Sherwood Townhomes. Do we really need more? Low income housing is ruining this community. Ask any law enforcement officer where they get more calls. Low income housing brings more crimes. It brings more “Leaches of society” to live here. We need to build more housing for people that can pay for it. I don’t make a ton of money, but I can’t live at some of the nicest town homes or apartments in town because I make too much. There is no shortage in lower income housing!!! If you build it they will come!!! These people come to our community from all over. They suck off of the college, they suck off of the welfare system, they committ more crimes, and many of them don’t work. What is wrong with our city?? I can’t believe it!

  • whateverface

    I’ll start by stating I am not for this tax and as a city we should not do business with contractors that want to take federal handouts, turn out low income housing and then bail on the community in which they built them in but…
    Your comments are fear based and lack scientific evidence. Global studies are inconclusive on this matter and their findings are often in line with whatever interest group is funding the study.
    ~”Low income housing is ruining this community”..Really? That’s an extreme statement – is there a study that shows this for TRF?
    ~”Ask any law enforcement officer where they get more calls..” Look in the TRF Times any week and you see a balance of crimes that are commited in a mulititude of socio/economic environments.
    ~ “It brings more “Leaches of society” to live here.” This is an opinion, I haven’t seen our (TRF) population grow proportionally to the addition of affordable housing. By the way, it’s “Leeches” not.. “Leaches”
    ~” These people come to our community from all over. They suck off of the college, they suck off of the welfare system,..” Very broad and unrational statement…Let’s take a probable situation.. There’s a single mother who wants to come to our community to attend Northland to get a degree and better her life. She gets federal grants for school, maybe works a part time job and attends school, due to her situation she lives in low income housing – would she be a leech on the community? If you’re referring to out of state student athlete’s then I think your gripe is with the college system and recruiting as opposed to low income/affordable housing.

    just sayin…

  • Riverrat42000

    @Whateverface, you are 100% right comments are based on fear. You are also right about studies falling in line with party. You can play the starving children card, but nobody that’s paying child support will feed into that to fast. In the long run tossing $$$$ at a problem will NOT work. Use your eyes and ears. I don’t need studies to tell me everything. Studies are often wrong just like me, but don’t kid yourself.

  • 212 degrees

    Back to the issue. Taxpayers pick up the tab on TIF. We already have seven TIFs on the books and two more approved if they get completed. You are paying for these TIFs people of TRF and the developers pay almost nothing. In this case its up to 26 years on a building worth 4.6 million dollars. You need to contact your council member and tell then you have had enough. Go to Citytrf.net and click on their email address. You dont have to be mean just tell them how you feel. If you dont they will just follow the path of least resistance and vote for the mayors pet project. And dont let the develpers fool you, they can absolutely do this without TIF.

  • guest

    Despite the fact that your comments are a little harsh and maybe slightly exaggerate the problem, I would have to agree with you “pissed off”. I have lived in this community for much of my life. I have seen the city of TRF steadily go downhill. Look around. A community that was once booming with business and full of people that were proud of their hometown, is becoming run down with the downtown area nearly depleted of family friendly businesses. The housing situation is just another indication of the poor leadership this city has seen. As you mentioned there are way too many income based housing developments. It’s a catch 22 for people like myself who have a good paying job but are caught between making too little to afford a mortage and upkeep on a property and making to much to live in a decent townhome or apartment. For the apartments such as Northland Village – well, I think the majority of us know what goes on there and the condition that those apartments are in. It’s low income families and college students living there and I would never subject my own family or anyone else that I cared about to living in such a building. They’ve been trashed.
    If a developer cannot afford to build this apartment complex without using TIF, then maybe the city of TRF should hold themselves and it’s residents to a higher standard and hold off on this housing development until a developer who can actually afford to build it can come along. Think of the cost of the apartment buildings. I don’t know the number, but have read somewhere $4.2 million. There will be 60 apartments and I’m sure that rent will be no less than $600 per month for each unit (probably more like $800). That is income of at least $36,000 per month. Now I don’t know about the rest of you, but why should we be willing to allow this building project to use our tax money for a project that could easily pay for itself in a much shorter amount of time. It’s completely ridiculous.
    And please, someone tell me why we need to cater to the likes of Digi-Key when there has been very little that this company has contributed to the city of TRF when it comes to quality of life. There are many cities with multi-million dollar operations that donate money for playgrounds, swimming pools, and even housing. It seems to me that if you want to bring people into this town, then do something to give back to the community.