1.A Arden Village Workforce Housing Concept

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(City of Arden Hills Letterhead) (Date) Minnesota Housing Finance Agency 400 Sibley Street, Suite 300 St. Paul, Minnesota 55101 Attention: Multifamily Underwriting RE: Housing Tax Credit Program & Super RFP ARDEN VILLAGE — ARDEN HILLS. Dear Multifamily Development The City of Arden Hills is a community made up of residents, businesses and institutions sharing a common history. One of the primary purposes of a community is to serve as a place of residence for its citizens. Assuming this charge, offering a mix of life cycle housing opportunities becomes a challenge for local governments especially in suburban markets. The City has a strong desire to support affordable and work -force housing and is an active participant in the Livable Communities Program. The City's 2030 Comprehensive Plan sets goals that emphasize the development of a variety of housing types that are suitable for a mix of incomes including work -force housing. Developers and the City must be partners to cooperatively develop housing plans to provide life cycle housing in Arden Hills. The City of Arden Hills proposes significant local financial assistance for this project as part of its participation and endorsement. (Option 1) If the project is selected for funding, the City Council supports the use of tax increment financing (TIF) for the project. The TIF structure is proposed to be pay -as -you go with a projected tax exempt bond amount of $400, 000 with 90% of increment returned to the project for seventeen years. As part of the TIF, the project will need to meet state guidelines for tax increment financing including the "but for test". or (Option 2) If the project is selected for funding, the City Council supports the use of waiving local development fees in the amount of $400, 000 at the time the building permit is issued. Along with its financial endorsement of Arden Village, the City is supportive of offering flexibility in site development standards such as density and zoning code requirements as the project moves through the development approvals of the City. Although the project will be required to meet all building code requirements, the building officials will, to the best of their abilities, work with project to allow for fast - track permitting approvals. The proposed development is an excellent opportunity for the City of Arden Hills to meet a large portion of its housing goals. This endorsement is based upon the findings that the project will meet locally identified housing needs and that the proposed housing is in short supply in the local housing market. This need is evidenced by the gap between the local supply and demand for the proposed type of housing. The City Council's endorsement is evidenced by this letter of support for the proposed development. We respectively request funding approval for this needed development in the City of Arden Hills. Sincerely, Stan Harpstead Honorable Mayor