A Tax Increment Financing District (TIF) was created in 2005 to revitalize Mound's downtown from SuperAmerica to Lake Langdon. Tax Increment Financing (TIF) is used to fund utility re-alignments, environmental remediation/correction of unsuitable soils, acquisition of blighted buildings, and/or installation of public improvements. Phase I was completed with the clean up of the 1968 tornado debris dump, redredge of the Lost Lake channel, completion of the Andrew's Sisters Trail, boardwalk and slip complexes, completion of the Villas on Lost Lake townhomes and Caribou Coffee commercial pad development.
After the 2009 recession stalled development interest, the City took a series of steps to determine the appropriate next direction that ultimately culminated in the issuance of a Request for Qualifications and Interest in a Residential Development (RFQ/I). The RFQ/I made it clear public financing via TIF would not be considered because of the investment to date to buy blighted properties on the site and the taxpayers funding of the existing debt service from the Phase I dump remediation in Lost Lake. The selection criteria focused on maximizing the price received for the land and the long term taxable market value while preserving circulation and public enjoyment of surrounding areas. Because this is an active TIF district, 100% of the tax proceeds will go to the City through 2031 which will cover the remaining debt service and repay a large portion of the interfund loans/debt levies previously waged. Generating incremental tax value in the long term is why Hennepin County and the School District agree to TIF districts.
Lifestyle Communities final proposal remains generally in line with the original concept presented in Jan/Feb and incorporates the feedback received from the Council. It includes a 52-unit, 4 story, cooperative living, luxury residential development that would be independently financed, pay $700K for the 2.35 acres, and create $15.4M in additional taxable market value. The elevation rendering shows the building architecture consistent with a more contemporary lake-front, multi-family façade with the building frontage facing Lost Lake and access off a re-configured Auditors Road. Lifestyle Communities expressed the intention to complete the project in 25 months.
The 2+ acres of Lot 1 Block 1 will be improved as a public gathering space that will be complemented by the Three Rivers Dakota Regional Trail and Veteran’s Memorial Park to the north and the Andrew Sisters Trail and boardwalk to the south. When you combine the 1 acre of the Dakota Regional Trail and 0.25 acres for the Veteran's Memorial Plaza, this public space will be among the largest of Mound's premiere parks.