Agenda - Council - 06/09/2020 - Laserfiche WebLink

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Notification: Notification is not required. Observations/Alternatives: Observations: Project Considerations • Market Demand- According to the 2019 Maxfield Housing Study Summary there is demand for 70-80 units of affordable apartment housing from 2019-2030. • Zoning- The land is zoned for Multifamily housing/Apartments • Pricing - Offer for land is $125,000 ($2.11/SF). Staff estimates the land is valued at $3.00 to $4.00 / SF • Tax Impact - Staff estimates a value of $8M (subject to change when completed and fully assessed) $69,000 annual total taxes ($27,000 City). However, this location is located within a Tax Increment Finance (TIF) District. New taxes generated by the new value would be captured within the District until the District expires. • Construction Jobs / Cash intoCommunity - 100 jobs over 12 month construction period • Job Creation - 1-2 onsite jobs • Public Safety - Staff will provide public safety call data at the request of the City Council • Population Growth -Estimated to be 250 residents Project Timing: • June 2020 — Site control documentation executed. • July 2020 — Funding application to Minnesota Housing Finance Agency submitted. Funding application to the Metropolitan Council submitted • Fall 2020 — Design and entitlement work completed started. • November 2020 — Metropolitan Council funding awards announced. • December 2020 — Minnesota Housing Finance Agency funding awards announced. • January 2021 — Financing partners selected. • Summer 2021 — Construction closing and groundbreaking. • Summer 2022 — Construction completion and lease up. Alternatives: 1. Direct Staff to enter into negotiations with AEON for the sale of Outlot A, Greenway Terrace 2. Notify AEON that the City is not interested in selling Outlot A, Greenway Terrace to AEON 3. Something else. Funding Source: This item would be covered under normal staff duties. Recommendation: Acknowledging that the City Council took two previous actions to allow the Purchase Agreement to expire, Staff is seeking policy direction without making a Staff Recommendation at this time. Staff further acknowledges that subsequent discussions pertaining to multifamily housing have occurred at the Council Level. Finally, Staff is forwarding this request per our appropriate policies. Since a request has been made, Staff cannot simply deny at an administrative level. That being said, it did appear to be some support in moving forward based on a recent Work Session discussion. Action: Based on discussion.