St. Cloud City Council Expands EDA Powers to Fund Affordable, Workforce Housing

(KNSI) — The St. Cloud City Council has given the city’s Economic Development Authority more power to help build housing.

On a unanimous vote Monday night, the council modified the resolution that governs the EDA, allowing it to use housing tax increment financing on affordable and workforce housing projects.

EDA Director Cathy Mehelich says tax increment financing authority had been transferred to the EDA, but the agency was barred from using it on low- and moderate-income housing. At the same time, the city’s Housing and Redevelopment Authority couldn’t use the tool either.

“So there was this gap for the last 15 years that neither entity was able to utilize housing tax increment financing to support the development of affordable housing and workforce housing in the community,” Mehelich says.

Mehelich adds the modification takes nothing away from the HRA, which retains all of its existing and future housing projects. She says language requested by the HRA’s attorney was built into the change to make that clear.

Councilman Dave Masters, who sits on the EDA board, says he favors the measure because it “brings forth another option for TIF funding for affordable housing, which is definitely needed in the city.”

Councilwoman Karen Larson praises the cooperation between the two agencies. “It is once again evidence of how this city and how this community collaborates, because you might expect that two bureaucracies, the EDA and the HRA, would be in silos and not talking to one another. This is precisely the opposite of that. It’s the collaboration that will bring us the kind of housing that we need.”

Also passed at Monday’s meeting was an ordinance banning parking along both sides of 15th Avenue South between 11th and 15th Streets South near South Junior High. Signs will be posted reading “No Parking 7:00 a.m. to 4:00 p.m. School Days.” The request originated with the St. Cloud Police Department, which raised safety concerns about the area during school arrival and dismissal periods.

Giliberto’s Mexican Taco Shop also received approval to transfer its liquor license to its new address at the corner of 33rd Avenue North and Division Street, clearing the final hurdle for it to open in the former PepperJax Grill location.

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