Developer Requests $8 Million in TIF for Brooklyn Park Apartment Complex

A developer is considering building a 203-unit, four-story apartment complex in Brooklyn Park near the Highway 610-Zane Avenue corridor. However, for the project to move forward, the developer is requesting between $8 million and $9 million in tax increment financing.

Bader Development is proposing the complex on city-owned property at Xenia Avenue and Oak Grove Parkway, across the street from Burger King.

The project is called Oxbow Commons.

Along with the market-rate apartment complex, the site would have open space for future retail development.

“We have a long history in Brooklyn Park,” said Will O’Keefe, director of development for Bader, at the Brooklyn Park Economic Development Authority (EDA) meeting on April 20. “We’re excited to continue that and expand upon our investment here.”

If it’s constructed, rent on a studio unit would cost $1,350 per month. 

The property would have a mix of units from studio to three bedrooms with rent on the largest units costing nearly $3,000 per month.

As part of the deal, Bader has offered an approximately $2 million purchase price for the city-owned plot of land.

TIF Request

Bader is requesting financial help from the city for the Oxbow Commons project.

The largest pot of money the developer is requesting would come from tax increment financing (TIF), a tool municipalities or other government entities can use to subsidize development.

To implement a TIF project, the city has to declare a specific area as blighted or otherwise underdeveloped. That district then has its property taxes frozen for a set period of time. Then, as development occurs and property taxes rise, any new property tax revenue or “increment” can be set aside to help developers cover building costs. 

In this case, Bader is requesting 90 percent of the available increment, or between $8 million to $9 million, over a 26-year period.

Council Support

The EDA generally indicated support for the project.

Commissioner Nichole Klonowski said she believes the city and Bader can continue to negotiate the financial details and meet in the middle.

“One of the goals of this project is to get market rate units in the mix, more in the mix for Brooklyn Park to help build that case for future market rate,” Klonowski said. “So the goal in my perspective isn’t just the tax base being immediately available for this project, but a longer term vision.”

City staff members expect to bring back a term sheet that would lay out more specific agreement details and give Bader the exclusive right to build on the property. 

See also: Planning Begins for Highly Anticipated Weaver Lake Regional Trail

Brooklyn Park