Melrose Council Approves Workforce Housing TIF District for 72-Unit Development

MELROSE — January 19, 2023 — Melrose City Council backs Workforce Housing TIF district for 72-unit Railroad Avenue West apartment project. The council unanimously approved Resolution 2023-10, calling for a March 9 public hearing on the creation of one of fewer than 10 Workforce Housing Tax Increment Financing districts established statewide since the Minnesota Legislature authorized the tool in 2021. Economic Development Consultant Tracy explained that the nine-year TIF, paired with six years of city-only tax abatement at 90 percent of the increase in assessed value, replaces a standard 26-year Housing TIF that Granite City Real Estate Partners said was financially unworkable due to income restrictions. No further steps will advance until the developer deposits $30,000 in escrow, which city staff called a top priority for the coming days. City Administrator Colleen also announced a Moody's bond rating upgrade from A1 to Aa3 — the highest rating available for a municipality of Melrose's size — citing the city's robust reserves and sound financial practices.