Agenda - Council - 04/24/2012 - Laserfiche WebLink

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CC Regular Session Meeting Date: 04/24/2012 By: Tim Gladhill, Community Development Information Title: Consider Development Agreement with Podawiltz 7.2. Background: As the City Council may recall, Mike Podawiltz of Podawiltz Development Corporation presented a proposal for a local contribution for a Section 42 Tax Credit Application to Minnesota Housing Finance Agency (MHFA). The proposed project called for 50 units of rental townhomes. In order to formalize the agreement, the attached Development Agreement and Resolution of Support are attached for your review. Observations: The direction from the March 13th City Council Work Session was to proceed forward with discussions with Podawiltz Development Corporation to finalize details of the local match. As outlined in the attached Local Contribution spreadsheet, a majority of the local contribution is proposed to be completed through a remnant HRA-owned parcel as well as a vacation of an existing public street, in exchange for completion of 147th connection to Town Center Drive. The gap financing of $15,000 remains, in which Staff proposed securing through future grant opportunities. Staff has identified the Metropolitan Council's Livable Communities Demonstration Account as a likely opportunity. Total present day cash value of the proposed local contribution is approximately $200,000. Also at the March 13th Work Session, the issue of needing to develop a policy for responding to these requests for local contributions was raised. This topic has been placed on Future Work Session Topics for the HRA. A final date has not yet been scheduled, but the deadline for the MHFA Application is coming soon. As it relates to this case, Staff has identified multiple key points and benefit to the City under this proposal: 1. Complete key transportation connection between Town Center Gardens and The COR 2. Help acheive the affordable housing goals of the City's Housing Action Plan for the Metropolitan Council's voluntary Livable Communities Program 3. Reduce maintenance cost be reducing the amount of public streets through conversion of 147th Circle to a private street The proposed Development Agreement is not in lieu of the standard Development Agreement that will be required with the future land use applications. The Developer is still responsible for completing the necessary zoning and subdivision approval as required by City Code, including applicable development fees. Recommendation: Based on direction at the Work Session, Staff recommends approval of the Resolution of Support and Development Agreement, subject to review by the City Attorney as to legal form. Funding Source: As outlined in the attached Local Contribution spreadsheet, a majority of the local contribution is matched through land donation, which will need to follow the standard City process if the project is approved for financing through MHFA. The remaining $15,000 is gap financing is proposed to be matched by an application to the Metropolitan Council's LCDA program. Council Action: