A new tax increment financing (TIF) district has been established in Carver to provide financial assistance for a new 372,000-square-foot industrial development.

The project, proposed by United Properties, would include two 189,000-square-foot buildings in the 212 West Business Center area, near the corner of Jonathan Carver Parkway and Levi Griffin Road. The property where the development will occur was recently annexed into Carver.

At its July 7 meeting, the Carver City Council voted to provide up to $2,376,471 in tax increment financing for eligible expenses over nine years of the project.

According to Community Development Manager Erin Smith, the twin buildings will provide lease space for production, lab, research and development, warehousing and distribution businesses.

Smith said the city expects to receive and review preliminary plat, rezoning and final plat applications for the project later this summer or early in the fall.

According to Jessica Green, managing director for Northland Public Finance, which helped the city set up the TIF district, the added tax generated by the increased valuation of the industrial property will be used to reimburse project costs incurred by United Properties.

Green said cities use economic development districts like these to encourage projects that would not occur “but for” public financing incentives.

“It’s unlikely to move ahead without assistance,” Green explained.

According to preliminary plans, the developer expects to start construction on the first building by Sept. 30, 2026, and complete work within a year. Construction of the second building would begin no later than Sept. 30, 2027, and finish up by Sept. 30, 2028.

During a public hearing to discuss the TIF proposal, no one commented in favor or in opposition. The council then approved the establishment of the TIF district by unanimous vote.