Discussion:
The applicant, Southbridge Crossings, has applied for a Soils Conditions TIF for the properties between Home Depot and the Marcus Theaters.
The applicant did soil borings for foundations for a proposed restaurant and found a significant amount of garbage, The retained an environmental firm that has completed a survey of the site and found significant soil conditions that would not allow building construction. The applicant has worked with the State and its consultant to develop a remediation plan.
Per the State Statutes, below, the applicant will have twenty years to remediate the site using TIF revenues.
Subd. 19.Soils condition district.
(a) "Soils condition district" means a type of tax increment financing district consisting of a project, or portions of a project, within which the authority finds by resolution that the following conditions exist:
(1) the presence of hazardous substances, pollution, or contaminants requires removal or remedial action for use;
(2) the estimated cost of the proposed removal and remedial action exceeds the fair market value of the land before completion of the preparation.
The requirements of clause (2) need not be satisfied, if each parcel of property in the district either satisfies the requirements of clause (2) or the estimated costs of the proposed removal or remedial action exceeds $2 per square foot for the area of the parcel.
(b) The proposed removal or remediation action must be specified in a development action response plan to satisfy the requirements of paragraph (a).
Use of the TIF will allow the site to be cleaned up and development to occur that will generate the increment to repay the developer for the cleanup.