Construction underway on residential development

     During the Aug. 21 Monticello City Council meeting, the council took action to establish the 2023 Monticello Multi-residential Urban Revitalization Area.

   The Revitalization Area “is intended to encourage development, redevelopment, and revitalization within designated areas of the city by authorizing property tax development incentives to the private sector.”

   The area to be included in the Revitalization Area are currently multiple lots owned by BR3 Subdivision behind Dollar Fresh.

   The Area would be appropriate for economic development and public improvements related to housing and residential development.

   The city council would approve all applications submitted for completed projects in the Revitalization Area.

   In order to move forward with the proposed tax abatement plan for the BR5 workforce housing project, a public hearing had to take place. No comments were received from the public.

   Council member Brenda Hanken asked if the 10-year 100 percent tax abatement proposal is normal for the city to offer a developer.

   “So much has changed about how we can do this process and move a project forward,” explained Mayor Dave Goedken. “This is time-sensative; they’re down there working. This project is going to get built, and they want it done before the end of the year.”

   City Administrator Russ Farnum offered that the state has placed limits on how cities can use TIF money.

   “The state limited the amount of TIF we can give to a project and the rollbacks,” he said. “The 10-year abatement makes this project work from the developer’s standpoint.”

   Farnum said the city normally offers a five-year abatement, but due to the declining property values the state put on residential properties, BR5 “needs 100 percent back to make the project worth doing.”

   Council member Wayne Peach asked about whether the city would be in jeopardy with the project being built in a floodplain. He asked if additional insurance was needed.

   Farnum said the city is not liable for building in a floodplain; and no additional insurance is needed on the city’s part.

   “We’re enforcing and following all of the floodplain regulations on this project,” he said.

   He added that any additional insurance coverage would be a matter between the building tenants and their private insurance companies.

   The city engineer, Snyder & Associates, has been asked to review the building plans and confirm the proper elevation for constructing in a floodplain.