Bridge Plaza project on its way to start following T.I.F.
Construction on the bridge plaza project will begin soon.
MANKATO, Minn. (KEYC) - The recent approval of a tax increment funding, also known as T.I.F., is turning the gears for Mankato’s $16 million dollar Bridge Plaza project.
Blue Earth County Taxpayer Services Director Michael Stalberger said this funding is an economic tool allowed by state legislature that can be implemented anywhere.
“What it essentially does is it helps develop or redevelop properties in communities," said Stalberger.
" Because it allows dollars that would normally go to the city, to the township, to the counties, to the schools, to be used for those development projects that are trying to be built or spurred in the community.”
Following the approval, developers named several tenants to occupy the space including Widseth Smith Nolting.
WSN Architect Mark Cipos said he and his team are excited about the project, noting that he has fallen for the Mankato area.
“The bridge plaza project is actually rather unique from our other offices in the sense that most of our offices are in either suburban or semi-rural areas,” said Cipos.
" The Bridge Plaza project is a literal city center project so it distinguishes itself from our other eight offices in that respect."
The pay-as-you-go method for the tax increment fund is valued at one million dollars.
“The way that the program funds that development is actually taking a look at the difference between what that property is paying for taxes, before the T.I.F. project and after the T.I.F. project," said Stalberger.
Stalberger said the difference in the before and after, that increase in value, is what is being captured as tax increment financing.
" And it’s captured for however long that T.I.F is in place," said Stalberger.
With its nearly $16 million in private funding and the T.I.F., the dreams of many are about to come true.
Construction on the five-story building is expected to begin this fall.
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