7B, Approve Resolution 2011-008 in Support of Arden Village HOMECDBG Application

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Tax Zncrement Financzn�quest Subsequent to the land use appro�als, SCI requested a letter of support %r fiax increment assistance. Although the request for tax increment assistance was relatively smaIl in relation to total projects casts, local financial assistance is very impartant in leveraging ta�c credits, grants, and loans frozxt other funding providers. SCI needed a Letter of s�pport for tax increment assistance prior to its appiication for t� credits from th� Minnesota Housing Finance Agency (MHFA). On June 14, 2010, the Council considered two options for t�e MHF`A letter af support: 1. Letter of support for up to $575,000 which would include TIF and a transfer of ownership of the wireless torver; and 2. TIF-only with support of up to $225,oaa, understand�ng that City s�pport at this level would leave Arden Village with a gap. As stat�d in the June 14, 2010, memo, "Based on the updated financial data and directian from the May 10 Council nneeting, SCI has prepared two possible public subsic�y st�ategies depending on whether ar not ihe City wants to pursue ownership of the tower. The Ciiy will need io select or�e of the two options for the Let�er of support that is submit�ed to MHFA for SCI's application. Whichever opt�on is selected, the City would be affering a good faith commitment to provide the requested amount of support to the project provided that SCI recei�es the housing tax credits and the fnal �nancial analysis de�ons�rates the need for the requested support." The City Council voted to proceed with Option 2 above, and a letter of support for up to $225,000 in TLF' assistance was provided. Ramsev Countv HOME Application SCI was unsuccessfuI in the last round of MHFA tax credit funding. SCI is now trying to fill its funding gaps so that it will be more competitive in the next round of iax credzt funditag. SCX intends to apply far $300,000 in Rarrtsey Counry HOME or CDBG funds. Ramsey County receives an annual allocation oi federal CDBG funds of a�proximately $1 �x�.illion and federaI HOME funds of approxiz�nately $600,Oa0. The funds are distributed throughout th� County on a competitive application basis. Applications are accepted annually and are due on February 25, 201 L The appIicatian requires a resolution of support frotn the City. With the City's March $, 2010, land use approvaIs and the June 14, 2010, good faith commitrnent for up to $225,000 in TIF assistance, SCI closed on the purchase of land in December 2010 and is currently pursuing funding to �iIl its funding gaps. If SCI is awarded HOME or CDBG funds, and ha�ing already received Iand use approvals and acquired the land, they should be quite competitive for the next round of MHFA tax credit funding. City of�trden Hills City Council Meetirrg Fehruary 14, 2011 Page 2 af 3