ROCHESTER — A downtown property owner is seeking release from Rochester’s Downtown Special Services District as an annual increase in related fees is required to be approved.
Rick Mattson of RJMJ Properties LLC asked the Rochester City Council earlier this month to remove his building at 620 First Ave. SW from the 44-block district.
“I object to the fact that neither the property nor its use would benefit from the proposed special services,” he wrote in an email to the city. “Currently operating out of the 620 premises is NAPA Auto Parts. The feeling is very small.”
The request comes after Congress approved renewing the district for the next 10 years.
Following the update, council will be asked Monday to approve a 4% service fee increase that would bring the total amount collected from property owners in the district from a total of $379,273 to $394,256, depending on each property’s ability to pay taxes. will be assessed individually based on
The Downtown Special Services District is outlined, with contributing commercial properties marked in purple. The Rochester City Council will consider extending the school district for another 10 years at its regular meeting on Monday, October 7, 2024.
Contribution from the City of Rochester
Funds raised through service fees make up about one-third of the Rochester Downtown Alliance’s annual budget and help support the organization’s various events and marketing efforts.
Mattson said his building, located in the southern part of the district, has not benefited from RDA-supported activities.
“Of all the people that flock to downtown, we just happen to be one of the (businesses) that doesn’t benefit from this,” he told the City Council during an Oct. 7 public hearing.
Rochester Strategic Initiatives Director Josh Johnsen, who represents the city on the RDA board, said the City Council takes a long-term view when deciding whether to remove properties from the district because of the potential for changes in use. He said he needed to have it.
“The changes will be permanent,” he said, noting that new apartment complexes will soon be built in the area across from Matteson’s building and that Soldiers Field Memorial Park will undergo renovations.
“The downtown area where the parcel is located is undergoing transformation, especially as the University of Minnesota’s campus plans encourage further development,” he added in a report to the City Council.
The district has a mix of fee-bearing and exempt sites, and all commercial and industrial properties, including vacant buildings and sites where buildings have been demolished, are subject to service charges. Apartment buildings are not eligible.
District maps are updated annually to reflect changes in property designation, but the renewal period is the only opportunity for property owners to petition to be removed from the district.
In 2015, during the district’s final renewal process, Paul Myfrom, owner of the former Honest Bike Shop and the building that housed the store (44th Street SE), sold his property on 2nd Street SE. successfully petitioned to have it removed from the district. It was approved by the City Council with a vote of 4 to 3.
Johnsen said Mattson’s request is different compared to the 2015 decision. The 4th Street address is located along the edge of the district, and the boundaries were adjusted to exclude it.
The building Mattson wants removed from the district is located to the north of the contributing buildings and is surrounded by the rest of the district. In other words, if it is removed, a hole will be left in the designated area.
Mayor Kim Norton said she’s worried about what the future holds.
“If NAPA Auto Parts leaves tomorrow and someone else who benefits from that moves in, we’ve given a company an out,” she said.
At their Oct. 7 meeting, city councilors decided to use the 30-day response period to delay a decision on the request.
If the city council decides to keep the land within the district, Mattson will have 30 days to appeal to district court.
In the meantime, remaining property owners and others in the district will comment on the proposed service fee increases at a council meeting Monday at 6 p.m. in the council chambers of the City-County Government Center. Get an opportunity.
The proposed increase is the minimum amount allowed under district guidelines, which call for annual increases ranging from 4% to 8%.
The following meetings are scheduled for the week of October 21st:
rochester
• City Council, 6 p.m. Monday, in the council chambers of the City-County Government Center, 151 Fourth St. SE. The meeting will be livestreamed at www.rochestermn.gov/meetings/council-meetings and can be viewed on Spectrum cable channels 180 or 188.
• Heritage Preservation Committee, Tuesday 5pm, Government Center Council Chambers.
• Transportation Citizen Advisory, Thursday, 4:30 p.m., City Hall, Room 104.
olmsted county
• Rochester-Olmsted Council of Governments, noon Wednesday in Conference Room A, 2122 Campus Drive Southeast, Rochester.
• Soil and Water Conservation District Board, 8:10 a.m. Thursday, Meeting Room A, 2122 Campus Drive SE.
rochester public schools
• Special session of the Board of Education regarding field trip expenses. Tuesday at 5:30 p.m. in the Edison Building boardroom, 615 Seventh St. SW.
• Board of Education, after a special session was held Tuesday in the Edison Building boardroom.
