Pedestrian access, a multi-level parking garage, a mix of office and retail space.
Eagan city officials have a laundry list of features they would like to see Minneapolis-based CSM Corporation incorporate into the company's redevelopment of the former Lockheed Martin property.
But to get there, the city may have to chip in some public money.
Eagan Community Development Director Jon Hohenstein said the city is considering the creation of a Tax Increment Financing (TIF) District to help fund certain infrastructure improvements on the 47.4-acre site, which is situated just off Pilot Knob Road in Eagan.
WHAT IS A TIF DISTRICT?
When new development is constructed on a site, the market value of that property and its property taxes typically rise. TIF districts use the extra property taxes generated as a result of development—called the tax increment—to retroactively pay for certain development costs within the district.
In this case, Eagan city officials say they could use the TIF money to leverage a higher-quality development. While CSM is committed to developing the site, the company told Eagan City Council members that—without public assistance—they plan to pursue a market-driven plan.
“The Lockheed Martin site is a high-profile site; it’s high-visibility, it’s high-traffic. I think it's very important for not just that [Central Commons] Special Area in that city, but really the whole city, for that project to be done right," Eagan Mayor Mike Maguire said.
LOOKING TO THE LEGISLATURE
At the moment, the city does not have the authority to implement a TIF district on the CSM property because state laws dictate a TIF can only be created if:
- Creation of the district would lead to manufacturing, research and development or warehousing jobs;
- Or development on the current property is ruled substandard or obsolete, among other requirements.
The Lockheed Martin redevelopment project doesn't meet either of these conditions, Hohenstein said. However, city officials have asked Eagan's legislative contingent to extend the deadline of a now-expired rule that would allow a TIF district if creation of the district would stimulate construction jobs.
Maguire said he wants to have the option of creating a TIF district on the table, but isn't sold on the idea of using a TIF district to help fund improvements to the CSM project.
"In order for me to be favorable toward a [TIF] district, I’d need to look at what it is that CSM is proposing and how is it that our participation in it can help get more of what it is the city council is looking for," Maguire said.
Click the links below to read more about the redevelopment of the Lockheed Martin property.
- Council Preview: Lockheed Martin Site Study Returning to the Council