Politics & Government

Development Agreement Finalized for Former Lilydale Tennis Club Site

The project's details and TIF financing have been signed off on by the city.

The city of Lilydale passed the final development agreement and approved the details of tax increment financing for the former Lilydale Tennis Club site last week.

Approval of the final redevelopment plan describing the site and a plat were . Outstanding issues including drainage and bluff plantings have now been addressed for the development agreement.

The agreement was reviewed line-by-line with project stakeholders in preparation for the approval.

Find out what's happening in Mendota Heightswith free, real-time updates from Patch.

“This is a huge amount of work on the part of some of you people, so it’s wonderful to see this come to this conclusion,” said Mayor Anita Pampusch at the meeting.

A 120-unit senior living building to be developed by Southview Senior Living is scheduled to be built first on the site, then a luxury apartment building is planned to be built second by John Wall of Highland Bank.

Find out what's happening in Mendota Heightswith free, real-time updates from Patch.

Tax increment finance (TIF) bonding of $1.98 million was also approved and will be purchased by Highland Bank.

City council member Marilyn Lundberg voted against the bonds, citing concerns about the term length and the specific uses of the money.

The bond money, which will be issued in two phases correlating with the two separate buildings, can be used for site improvements such as the installation of utilities, cleanup, bluff restoration and demolition.

TIF is typically used to develop blighted properties that otherwise would not be developed. Property taxes generated from improvements to the site will be used to pay off the bonds over 15 years starting in 2014, rather than ending up in the city’s general fund.

Should the project fail, the bond holder is at risk, not the city.

“It’s about time,” said former mayor Tom Swain, who was present at the meeting and has watched the project rise from the remains of a . Swain said the project was an appropriate use of the site.

Financing for the senior living project is scheduled to close Sept. 1, at which point building permits can be issued.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here

More from Mendota Heights