Development / Project Updates
AVALON ESTATES (10-ACRE PARCEL)
Key Information about Avalon Estates
- Avalon Estates is being developed on the 10-acre parcel north of the Community Center which had been owned by the city since 2001.
- The site has been offered for sale by the city since March 2021. A link to the Request for Proposal (RFP) can be found here.
- The city completed a housing study several years ago showing a strong need for rental units, and because of that, the city’s preference for that site was to include apartments. In addition, the comprehensive plan shows the land is guided to be developed as residential.
- Low, or no cost for the land was contemplated when the RFP was put together to encourage development. Even with that incentive, the city only received one (partial) proposal in response. But, in addition to the land for a dollar, their request also involved using tax increment financing (TIF) or tax abatement to assist with the cost of improvements. (Tax increment financing is a development tool that allows the property taxes paid on the difference between the value of before and after construction to be paid to the developer for a period of years. Tax abatement is a reduction in property taxes paid for a period of years.) The developer requested the land for $1, but the city did not approve any abatement or tax increment, and that partial proposal was withdrawn.
- The current proposed development contains two 55-unit apartment buildings as well as 22 patio homes around the perimeter, excludes TIF, or tax abatement and includes developer investment via sewer and water access charges, water and sewer infrastructure, and parkland dedication fees.
- When this development is complete, it will have an estimated market value of $24 million, which would be 1.87% of the city’s current taxable market value. The value of this project will be in the development of the land and the immediate, ongoing payment of property taxes, as opposed to a one- time payment for land with tax abatement. Annual estimated city property tax collections upon completion of the development will be $130,000. That number is just city taxes - Sherburne County and Becker Schools will experience the increased taxable market value and related property tax capacity. @(Model.BulletStyle == CivicPlus.Entities.Modules.Layout.Enums.BulletStyle.Decimal ? "ol" : "ul")>