Agenda - Council - 03/26/2013 - Laserfiche WebLink

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Observations/Alternatives: Peter Worthington, of MWF Properties, will be presenting the project proposal to the City Council. There are multiple site plan review items that need to be addressed, which will be addressed at a future date if necessary. At this time, Staff is seeking feedback on potential City participation prior to spending additional time discussing and reviewing further with the potential Developer. The Developer is seeking Section 42 tax credits, administered through the Minnesota Housing Finance Agency (MHFA). The Developer is asking that the City participate financially in order to increase the chance of successful award of said financing. The program does provide options other than cash contribution that count as the local match, which will be presented by Mr. Worthington. Evaluation of the HTC Applications are based on a points system, and City participation includes additional points. A copy of the current HTC Self Scoring Sheet is attached for the City Council's review. As stated, there are a number of ways to satisfy the local contribution including, but not limited to TIF, grants, reduction in land costs, or regulatory cost reductions. One potential funding source is the Metropolitan Council Livable Communities Program or the Anoka County Housing and Redevelopment Authority levy. Furthermore, the Property is located within TIF District #14. Again, Staff recommends a broader policy discussion on TIF District #14 before identifying this as a potential funding source. However, TIF utilization for public infrastructure (e.g., roads) would be one potential use of TIF for this project that would benefit both the City and the development. The deadline for Livable Communities funds is anticipated to be on or about May, 2013 (based on previous funding rounds). Staff will revisit this funding source when the funding cycle is opened for 2013, and bring back a case for consideration by the City Council. Staff will continue to work on identifying additional ways to address the local contribution, if directed to do so by City Council. Alternative #1. The City Council could direct Staff to continue discussions with the Developer to identify an appropriate funding source for the Local Contribution. Staff would recommend a housing grant as the preferred method to satisfy the Local Contribution. Staff is seeking feedback on the use of TIF #14, likely for required public improvements. The City Council could also direct Staff to explore other parcels where the cost of development could lead to a reduction in the requested Local Contribution. Alternative #2. The City Council could deny the request for a Local Contribution. It is unlikely that the project would move forward without the Local Contribution. Alternative #3. The City Council could postpone a decision, pending review by the HRA related to housing assistance and land sale discussion. Recommendation: Staff recommends that the City Council direct Staff to pursue potential funding sources for the Local Contribution, but not formally agree to the Local Contribution at this time. It is also recommended that staff prepare a TIF analysis for this project to determine potential revenue from the project. This direction would not authorize Staff to submit any application for grant or other funding. Said authorization would come at a future date with a specific grant fund identified. Funding Source: There is not additional funding required to continue discussions with the potential Developer. The funding source for a local contribution would need to be determined in the near future, based on discussion (if approved). Council Action: Motion to direct Staff to continue/not continue discussions regarding local contribution for MWF Properties related to a Minnesota Housing Finance Agency (MHFA) Housing Tax Credit Application. Attachments