Oakdale's economic development could get a boost in the coming years.
Sen. Chuck Wiger and Sen. Susan Kent (DFL-Woodbury) recently introduced Senate File 48, which would extend Tax Increment Financing (TIF) districts in Oakdale. This would allow further economic development at Tartan Crossing and the Tanners Lake area.
“These districts are really important for the entire east metro region,” said Kent, serving her first term as the District 53 senator. “When we are able to develop this area, it will provide a significant return on investment.”
The bill would extend the TIF districts to 2030. They are currently set to expire in 2024.
“This is designed to continue the revitalization of Oakdale. There has been a great deal of work already done tearing down existing structures and building the necessary infrastructure to make these parts of Oakdale economically viable,” Wiger said. “We need a little more time to get the job done right.”
The Tartan Crossing redevelopment project currently has a $670,000 funding gap due to a decrease in TIF revenues as well as a list of infrastructure requirements from Washington County.
The project's cost is $42.5 million, with $30 million coming from private investment and $12.5 million from the public.
The Tanners Lake redevelopment project has a funding gap of $1.7 million due to the site's complexity. The project costs $22.5 million with $20 million from private investment and $2.5 million from the public.
Here is a rundown of the projects and how the bill would help:
Tartan Crossing Redevelopment Project
- It would extend the TIF distrct by six years years beginning in 2025 and extending through 2030. This would generate approximately $670,000 over the life of the extension.
- The private improvements will create at least 85 construction jobs.
- Future development will create 125 permanent jobs.
- Total new taxes generated would be $470,000 with $180,000 going to the city; $140,000 to the North St. Paul-Maplewood-Oakdale School District; and $150,000 to Washington County.
- The new value would reduce the cost to property owners of the county’s and school’s operating levy.
In 2011, the Oakdale city council purchased the old mall site to redevelop it into Tartan Crossing. The redevelopment plan for Tartan Crossing includes 154,000 square feet of commercial (retail, medical office, office) space and 120 senior housing units.
Tanners Lake Redevelopment Project
- It would also extend this TIF district by six years, beginning in 2025 and extending through 2030. This would generate approximately $750,000, which would be used to pay for acquisition, demolition, utility installation costs and other site preparation costs.
- It would allow the city to also use tax increment from the Echo Ridge TIF district to also pay for acquisition, demolition, utility installation costs and other site preparation costs. This would generate approximately $950,000.
- The new development will increase state sales tax collection.
- The private improvements will create at least 40 construction jobs.
- Total new taxes generated would be $350,000, which would be divided among the city, school district and county.
In 2008, the city council purchased one property at the Tanners Lake site and the other two properties are currently privately owned. The redevelopment plan includes 60 units of market rate rental housing, a 3,500-square foot restaurant and 10,000 square feet of neighborhood retail space.