If Mayor Bonnie Rietz and Austin Housing and Redevelopment Authority Director Kermit Mahan get their way, Gov.

Tuesday, March 20, 2001

If Mayor Bonnie Rietz and Austin Housing and Redevelopment Authority Director Kermit Mahan get their way, Gov. Jesse Ventura will be present at an 11 a.m. April 9 groundbreaking ceremony at the Murphy Creek site.

At a recent City Council meeting, the Murphy Creek area became the 12th tax increment finance district after a 6-1 vote by the council. The former Cook Farm property will close on March 26 and was approved based on a 25-year housing district factor.

The dissenting vote was made by Second Ward Councilman Pete Christopherson, who said he voted in opposition to the TIF in keeping with previous statements against that form of financing.

"It’s consistent with what I campaigned on," he said.

Normally in a TIF, bonds are sold by the city to raise money for development. The taxes on the property increase after the land is developed. Then, the difference between the taxes before and after development usually are put into a special fund to pay for the bonds.

In this case, the developer, Podawiltz Development Corp. of St. Cloud, is working with a lender from Portland, Ore. Podawiltz will be reimbursed by the increase in taxes for the townhomes. The city will be reimbursed for infrastructure costs by the tax increase.

The newly approved TIF No. 12 will include 88 townhomes, with 36 available on a tax credit basis and the rest at market rate. These townhomes will be part of the first phase of development, Mahan said during the Feb. 20 council meeting.

The second phase will include 31 single-family houses, a half of which will be available for first-time homebuyers. The remaining half will be available at market rate.

Multiple sources of funding, including tax incrementing and money from Apex Austin, the Greater Minnesota Housing Fund and Hormel Foods Corp. are the reason the homes and townhomes in the $12.5 million project will be affordable, Mahan said.

"For all intents, it’s put to bed," Mahan said.

Call Kevira Mertha at 434-2233 or e-mail her at newsroom@austindailyherald.com.