Economic (Re)Development

The Solution

Ehlers worked with the City’s team to evaluate funding options for the project from several sources including creating a TIF district around a proposed 1 million sq. ft. project to capture TIF for the infrastructure project and issuing G.O. Tax Increment bonds supported by TIF from the project to fund a majority of the costs. The City applied for and received a $1 million MN Department of Employment and Economic Development Transportation Economic Development Infrastructure (TEDI) grant. They also used pavement management funds based on conservative TIF projections.

The Outcome

The completed work spurred the development of over 2.9 million square feet of business park and garnered over $12 million in additional infrastructure investment form private development. The project also created approximately 730 new jobs.

The Solution

Ehlers provided end-to-end financial and redevelopment advisory services to help the City regain control of the site, identify a development partner, and advance a viable redevelopment strategy. Ehlers assisted with issuing temporary debt to acquire the property from Hy-Vee, secured special legislation to enable creation of a Tax Increment Financing (TIF) District, supported negotiation of financial assistance, and structured and established the TIF District to support phased implementation while protecting the City’s long-term fiscal interests.

The Outcome

West St. Paul successfully reclaimed control of a key redevelopment site and advanced a clear, implementable vision for a mixed-use city center. The Thompson Avenue Redevelopment will deliver approximately 450 housing units, new restaurants and commercial activity, park space, and enhanced trail connections to the greenway. The outcome positions the City to transform a former redevelopment setback into a catalyst for long-term housing growth, community vitality, and reinvestment.

The Solution

Ehlers partnered with the City and EDA to provide the financial analysis and financing strategy necessary to move the project forward. Through detailed projections and cash flow analysis, Ehlers supported the City’s application to Minnesota Housing’s Workforce Development Program and structured tax-exempt debt financing that made the development feasible.

The Outcome

The City secured $1.31 million from Minnesota Housing and issued $1.87 million in general obligation tax abatement bonds to deliver 10 new two-bedroom workforce housing units. The development addressed a critical housing shortage, strengthened workforce attraction and retention, and supported Dawson’s long-term community and economic vitality.

The Solution

Ehlers evaluated the financial feasibility of the development and the need for public assistance, helped determine the appropriate level and structure of support, assisted with negotiating key terms of the development agreement, and guided the City through the establishment of a tax increment financing district to support redevelopment while protecting the City’s long-term fiscal position.

The Outcome

The Terasa Apartments, a mixed-use and mixed-income development, delivered 223 residential units offering housing choices across income levels, revitalized an underutilized property, and added nearly 21,000 square feet of commercial space anchored by a grocer. The project strengthens neighborhood vitality, supports long-term tax base growth, and advances the City’s affordable housing objectives.

The Solution

Ehlers assisted the City in evaluating Boston Scientific’s request for tax increment financing assistance and assessed the financial feasibility and public benefit of the proposed support. Ehlers also advised the City on pursuing State assistance, including applications to the Minnesota Investment Fund and the Job Creation Fund, to strengthen the overall incentive package and enhance Maple Grove’s competitiveness during the site selection process.

The Outcome

Maple Grove was selected as the location for Boston Scientific’s new divisional headquarters, successfully retaining more than 1,000 existing jobs within the community. The 400,000-square-foot facility was completed as planned, and Boston Scientific celebrated the grand opening of the new headquarters on October 20, 2025. The expansion, which involved state funding and local support, positioned Maple Grove as a key med-tech hub, with plans for future manufacturing growth and significant job creation.

The Solution

Ehlers leveraged its extensive experience in solving complex development challenges by partnering with Bloomington to supplement their staff. Together, they crafted a creative financing strategy utilizing tax increment financing via special legislation passed during the 2023 Legislative Session. This innovative approach is designed to bridge the funding gap and move the project closer to reality.

The Outcome

Bloomington and the Mall of America are now developing agreements that will provide key public financing to close the significant funding gap. This process respects the vision behind the original concept and the innovative financing strategy developed by Ehlers, Bloomington, and the MOA. By combining legislative solutions with strong safeguards to protect public funds, the project is positioned to advance and deliver a unique destination that will attract hundreds of thousands of visitors annually and strengthen the region’s economic vitality.

The Solution

Hennepin County selected Ehlers to analyze and underwrite funding applications to best allocate scarce public resources. Our municipal advisors conducted a detailed pro forma review for each application to determine if a gap exists, the size of the gap and to what extent a TOD funding award would allow the project to advance to construction. Working collaboratively with County staff, we successfully identified which projects had the greatest ability to move forward while adhering to program objectives.

The Outcome

During the 2017 and 2018 funding cycles alone, Ehlers financial advisors reviewed more than 50 projects and financial pro-formas including over 6,000 apartment units, 617,000 square feet of commercial space and $1.7 billion in total development costs. Those projects requested nearly $30 million in TOD funding, far exceeding the $4.5 million of available dollars in those funding cycles. In collaboration with the County, we prepared evaluation criteria to consistently determine those projects that had the greatest ability to minimize gaps, leverage other sources and achieve financial feasibility.

Of note: This transaction marked the first time a Minnesota issuer combined G.O. – supported housing revenue bonds with 4% tax credit available to issuers of private activity bonds for qualifying purposes. This allowed the CDA to combine the low interest cost of G.O. Bonds with the equity generated through the sale of tax credits to provide seniors with the lowest possible rents.