Minutes - Council - 01/26/1999 - Laserfiche WebLink

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Motion carried. Voting Yes: Mayor Gamec, Councilmembers Haas Steffen, Hendriksen, Anderson and Zimmerman. Voting No: None. Councilmember Haas Steffen suggesting skipping to Case #10 as there were people present to hear that discussion. Case #10: Anoka Community Action Program (ACCAP) Housing Proposal Community Development Director Sherman stated that staff and Council have discussed the concept of ACCAP's housing proposal briefly at a work session. ACCAP is looking for a commitment from the City to use Tax Increment Financing for a project. Timing is such that we need to make a commitment of sorts because they need to get a request into the State. The action staff is asking for is based on the City's review/approval and on securing Low Income Housing Tax Credits fi:om the Minnesota Housing Finance Agency. A report was received from ACCAP and the Economic Development Authority is recommending that City Council commit to the creation of a TIF district with the intent of financing a housing development with ACCAP of up to 40 housing units on a site to be approved by the City. Jeff Johnson, ACCAP, stated that the due date for to submit for tax credits from the Minnesota Housing Finance Agency is February 18. The next date would be either August or September. If the February 18 date is missed, ACCAP could have to wait another year. Councilmember Haas Steffen noted that the EDA is recommending the creation of the TIF district. We also had the CDBG requests in front of us. If Council decides to go forward with this project, some of the CDBG monies could be used to fund this. If you go forward in the affirmative tonight and you say that it's your intent to create a TIF district to purchase these types of homes and you add that you want to use TIF and CDBG and you do not come to an agreement, does a positive commitment tonight make it impossible to get out or very costly to get out. Councilmember Zimmerman posed those same questions and added that it's a good idea but he was not certain he was ready to make a commitment o that is unless he knows where the site would be. Councilmember Hendriksen stated that it seems there are a lot of very expensive things on the table. The City is spending a lot of money on T.H. #47, they are giving away land for a college, giving away houses on T.H. #47, and building senior housing. He suggested talking about this housing concept at a work session. Ms. Sherman reiterated that the action tonight is just to commit to ACCAP that we will create a TIF district if this project moves ahead. There is still an "out" opportunity. Motion by Councilmember Hendriksen and seconded by Councilmember Haas Steffen to table action on this issue until further discussion takes place at the February work session. City Council/January 26, 1999 Page 12 of 17