MANKATO — A development agreement between the city of Mankato and the Tailwind Group development firm was approved by the City Council Monday night, the last major step before construction of a $15 million office, retail and residential remaking of a block of the city center.
The city and state, which is providing more than $3 million in grants, are contributing a total of about $6.1 million in various incentives, loans and tax increment financing, primarily for construction of a multi-story parking ramp. Tailwind is financing a seven-story office tower that will have a taxable value of more than $7 million and a four-story mixed use building valued at nearly $3 million.
Together, the improvements will transform South Front Street in the block surrounded by Cherry and Warren Streets and Riverfront Drive. Demolition of some existing structures is set to begin later this year and the new buildings will begin to rise in 2014 and 2015.