1.A Arden Village Workforce Housing Concept

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the Minnesota Housing Finance Agency (MHFA) (htt ://www.nmhousin . ov/housin tax- credits/allocation/index.aspx). The number of housing tax credits are allocated to each state and this is competitive application program. Housing tax credits have been used in Arden Hills by Cottage Villas, the senior housing building on Cleveland Avenue, to maintain affordability. Request for City Support MHFA scores each housing tax credit application based on a set of criteria (for an example self - scoring worksheet, Visit htM://www.mnhousin.iz.gov/idc/groups/multifamily/documents/webassetimhfa 007954.rtf). To help the project score higher and hence have a better chance of receiving the credits, the applicant is requesting financial support from the City. The support could include a combination of the following: waiving all or a portion of City development fees (i.e. building, SACIWAC, park dedication), flexible zoning, Tax Increment Financing (TIF), and/or an expedited review process. On page eight of the submitted booklet, SCI has noted that a common form of City participation is creating a new pay-as-you-go TIF district. If a new TIF were created, the additional taxes generated by the development would be used to pay back bonds that help fund the project. The financials would need to be evaluated by the City's financial consultant if the Council decides to move forward with a new TIF district. As stated in the booklet, the TIF district would not have to be in place prior to issuing a letter of support. Waiving or reducing City development fees could also be done. Based on the preliminary design and project value, the estimated building permit fee is $72,500. City sewer and water access charges (SAC/WAC) would be an additional $34,600. Since they intend to subdivide the existing antenna from the rest of the lot, it would be subject to the park dedication fee. Based on a 2009 market value of $715,600 (Ramsey County property records), the park dedication fee is estimated at $71,560. The base cost for the Comprehensive Plan amendment, rezoning, planned unit development, and subdivision application is $3,000. The total estimated cost for all City related development fees is $181,660. The Metropolitan Council will also charge a sewer availability charge of $110,000, The City is responsible for collecting this charge and remitting it to the Metropolitan Council. While the City could pay the fee on behalf of the development, it would be an actual charge to the City. While waiving all or a portion of the fees can be simpler than creating a new TIF district, the fees do represent a charge for service that would be absorbed by the City since the services are still provided to the project. Conversely, a new TIF district requires additional footwork but the costs are essentially supported by the project itself through property taxes. As with any TIF district, the new increment of property taxes would go to the development instead of being distributed out to the City, county, and school district. City of Arden Hills City Council Work Session far August 17, 2009 C.-0ocuments and Settingslbecky. brazys lLocal Settingsl Temporary Internet Files 10LK15FW81709 -CC Memo -Arden Village - Sand Companies.doc Page 2 of 4