Tax Increment Financing Paves Way For St. Cloud Development

An outcome from the recently completed Minnesota State Legislative session has authorization of broader use of Tax Increment Financing.  St. Cloud Community Development Director Matt Glaesman joined me on WJON.  He says TIF (Tax Increment Financing) is a tool where the city can offer some reimbursement of tax payments for project costs.  Glaesman says this tool can help facilitate development of the Lady Slipper, Riverboat and Swan surface parking lots downtown.  He says the city is looking to spur residential growth downtown in those city surface parking lots.

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How the Downtown is Defined

Glaeman says the St. Cloud City Council approved the right to offer the TIF tool last week to developers looking to develop residential housing in both the downtown east end and west end.  Downtown west extends from the river to 12th Avenue (St. Cloud Library) while the east end extends out to trunk Highway 10.  Glaeman acknowledged the Swan parking lot near the newly opened Children's Museum may not be a top option for redevelopment despite it being named as an option on the comprehensive plan.  The Swan lot is being used as parking for the Children's Museum.  The open lot where the Press Bar used to be located is also open for redevelopment.

Interest in Downton Development

Glaesman indicates the city has received interest from developers for these properties and he expects additional interest with the TIF tool authorization now in play.  He anticipates housing being the primary use of any new developments.  Glaesman expects retail, which could include a grocery store, to follow housing.  He says the Children's Museum has already increased traffic downtown which has led to additional interest for developers.

Update on Herberger's Site

The former Herberger's building and property continues to generate interest.  Glaesman says there is no current purchase agreement to sell the property but there are multiple interested parties.  He says there may be multiple offers on the table but since the property is owned by a private party, he is not privy to the details.

If you'd like to listen to my conversation with Matt Glaesman, click below.