News Column

St. Cloud EDA to discuss termination of Fifth Avenue agreement

August 30, 2014

By Kari Petrie, St. Cloud Times, Minn.



Aug. 30--As plans for the Fifth Avenue Live development have changed, so could its agreement with the city of St. Cloud.

The St. Cloud will discuss Tuesday the possibility of ending its tax-increment financing agreement with Fifth Avenue Development LLC. The agreement was signed in June 2009.

The project was initially supposed to be three phases of specific redevelopment improvements with completion dates. Instead, the project included renovating existing buildings.

The Fifth Avenue Live project includes several buildings on Fifth Avenue. The agreement includes redevelopment of the block where Chipotle and Noodles & Company are, the block that includes City Hall and the block south of City Hall where there is now a church.

The initial agreement outlined three phases of the project, each including a four- or five-story building with commercial development, market rate apartments and parking. The second and third phases could not be done without building a parking garage, according to the agreement.

Since the project did not meet the requirements outlined in the agreement, the EDA board will consider ending the TIF agreement. The City Council must also consider ending the agreement.

Developer Brian Schoenborn has said the project changed because of impacts from the recession.

TIF allows a developer to capture, for a set time, the increased tax revenue generated by the climbing market value of a redeveloped property. The money is meant to offset redevelopment costs.

According to city documents, city staff may consider other ways to assist the developer to complete redevelopment improvements in the area. That would require a new TIF agreement.

The EDA board meets at 4:30 p.m. at City Hall.

Follow Kari Petrie on Twitter @karipetrie.

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(c)2014 the St. Cloud Times (St. Cloud, Minn.)

Visit the St. Cloud Times (St. Cloud, Minn.) at www.sctimes.com

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Source: St. Cloud Times (MN)


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