Resolution requesting Decertification of Tax Increment District No. 35-1 (1325 Madison Avenue); Mankato Design Center.

Adoption of the attached resolution.

On February 23, 2009, the Mankato City Council approved the establishment of Tax Increment Financing District No. 35-1 and the accompanying development agreement to support H & S Development, LLC in redeveloping the former Lewis Eastgate/Mankato Furniture Outlet property located at 1325 Madison Avenue into the Mankato Design Center. The project included the renovation of the 30,000 square foot building, improvements related to building and city code compliance, interior improvements to create leasable tenant space, exterior façade improvements, and public infrastructure improvements to enhance street access.
 
The amount of assistance to the developer was $178,798.51 plus 6.5% interest for the 15-year term of the district, on a pay-as-you-go basis. The City also incurred $37,337 in streetscaping costs.
 
Between July 2011 and December 2025, 30 tax increment payments were made. The total paid to the developer was $281,826, and the City was fully reimbursed $37,337 for streetscaping costs. The pay-as-you-go obligation has been satisfied, and the 15-year term of the district has concluded. The recommendation is to adopt the attached resolution to decertify TIF District No. 35-1.