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Proposed apartments closer to reality

By Rich Glennie
With a flurry of motions, the Glencoe City Council gave the go-ahead for a new apartment complex on the east end of Glencoe. The issue was scheduled to be approved March 5, but that City Council meeting was cancelled due to a snowstorm.
The matter was brought up again at Monday’s meeting and included authorization to execute a development agreement with Glencoe Multi-Family Housing, LLC, to construct phase one of a two-phased plan. The first phase would build a 50-apartment unit on five acres of land east of the Grand Meadows Assisted Living complex at the end of 14th Street.
A second motion approved a Planning and Industrial Commission recommendation to rezone those five acres as multi-family residential (R-2). The third City Council motion gave first reading of an annexation ordinance to bring the property into the city. The ordinance requires three readings.
Construction of the first phase could begin yet this year, said Dan Ehrke, assistant city administrator. He said a purchase agreement is already in place and a development agreement is needed with the developer.
To make the project work, the city established a tax increment financing (TIF) district. Projected tax increments created by the project amount to about $1.996 million over the next 15 years, and those increments will be used to pay off the city’s bonds needed for the land purchase and street and utility extensions to the 14th Street site.
As part of the development agreement, Glencoe Multi-Family Housing, LLC made several subsidy requests of the city. It requested the city purchase the five acres (estimated at $100,000) and sell the property to it for $1. It also requested the city pay for street and utility improvements to the property (estimated at $227,000). City subsidies total $327,000.
For more about the proposed development, see the March 21 print edition of The Chronicle.