Update: Public Assistance Approved for Downtown Rochester Development 

Rochester, MN (KROC-AM News) - Members of the Rochester City Council, meeting as the City Economic Development Authority, are scheduled to vote on establishing a new Tax Increment Financing District during a meeting on Monday.

The proposal was developed to support the Citywalk Apartment project planned at the southwest corner of 2nd Street and 6th Avenue Southwest on the former Just Rite Grocery Store property in downtown Rochester. The project calls for 340 residential units with structured parking.

The proposed development has been significantly expanded since it was first proposed. The original plans called for a six story building with 142 apartment units, but the developer revised those plans after Mayo Clinic announced its $5 billion Bold. Forward. Unbound expansion project.

READ MORE: Downtown Rochester Apartment Project Before Planning Commission

As part of the developer's request for the public contribution through Tax Increment Financing, the current property owner has agreed to enroll two adjacent existing apartment buildings into Olmsted County's 4D Affordable Housing Program. The meeting agenda states that including the provision in the development agreement will preserve 76 units of "naturally occurring affordable housing" for a period of 20 years.

The city document indicates the overall cost of the Citywalk Apartment Project is close to $150 million and the Tax Increment Financing District is expected to generate about $18.2 million in public assistance to support the project.

Construction at the site is slated to begin before the end of this year and be completed by the end of 2027.

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