Rochester, MN (KROC AM News) - It’s been in the planning stages for more than three years and now a significant milestone is expected to be reached Monday in a major downtown Rochester development project.

Details on a development assistance agreement were finalized Wednesday between the city and Bloom International Realty.

The firm is planning to build its project on city-owned property along the Zumbro River, between 2nd and 4th streets SE. It calls for two towers, parking and commercial space and public amenities.

A 20 story tower would be constructed first on the south end of the site. It would include 215 apartments for seniors. The second phase calls for a 28 story tower on the north end that would include 181 hotel rooms and 132 condo units.

Both towers will include parking garages totaling about 460 spaces. Bloom will give the city 173 spaces in exchange for the property.

Assistant City Administrator Terry Spaeth says a new element has been added to the agreement. He says the city will give Bloom nearly $2-million for an extra 41 parking spaces, needed to make up for the loss of the 2nd St parking ramp and a surface lot.

The two sides had agreed earlier to $18-million in tax increment assistance.

Spaeth says the agreement is scheduled to be voted on Monday by the City Council. Actual work at the site is expected to begin early next year.

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