At their meeting on Wednesday, Nov. 12, City Council approved minor revisions to the $32 million Cora Apartments plan and approved the use of Redevelopment Tax Increment Financing (TIF).

The project includes construction of 105 market-rate rental units, a street front restaurant, a rooftop deck for restaurant customers, and 135 private underground parking stalls, providing approximately one parking stall per bedroom, which is nearly double the amount of underground parking that is at Grainwood Senior Apartments, and nearly 30 percent more than Lakefront Plaza. Additionally, there will be 28 public off-street parking stalls and six on-street public parking spots.

The mixed-use apartment building will be constructed between City Hall and Gateway Park in downtown Prior Lake. Two single-family homes will be removed, and construction of the Cora Apartment building is expected to begin in early 2026.

The two existing homes on the land have a total value of approximately $650,000 and current annual property taxes of $6,200. With TIF, taxing jurisdictions will continue to receive the property tax amounts of the two homes. For example, the City will continue to receive its tax portion of those two properties. Additionally, the Cora Apartments will increase the value of the property and with TIF, 90 percent of that tax increase (increment) is returned to the developer to help pay for eligible project costs. 

The TIF district will be decertified when the reimbursement to the developer reaches $3.38 million or 25 years, whichever occurs first. Following decertification of the TIF district, the taxing jurisdictions will receive the entire amount of the annual property taxes for the building.

The City of Prior Lake has decertified three TIF districts over the past few years; all three districts were decertified early as the tax increment exceeded the initial estimates. With the approval of the Cora Apartments redevelopment TIF district, the City of Prior Lake will now have three active TIF districts.