1.A Arden Village Workforce Housing Concept

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City of 6t. Michact 3150 Lander Avenue NE • St. Michael, MN 55376 • (763) 497-2041 • Fax (763) 497-5306 June 10, 2008 Minnesota Housing Finance Agency 400 Sibley Street, Suite 300 St. Paul, Minnesota 55101 Attention: Multifamily Underwriting RE: Housing Tax Credit Program & Super RFP CORNERSTONE VILLAGE — ST. MICHAEL Dear Multifamily Development: The City of St. Michael 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's Comprehensive Plan sets goals and policies emphasizing the establishment of a diverse housing stock, maintaining existing housing units, increasing rental housing opportunities and utilizing housing assistance. Developers and the City must be partners to cooperatively develop housing plans to provide workforce housing in St. Michael, The City of St. Michael proposes significant local financial assistance for the Cornerstone Village project as part of its participation and endorsement. If the project is selected for funding, the City Council will sell the project site to the development for $1,00. A recent appraisal by Nagell Appraisal & Consulting valued the property at $295,000. On top of this, the City is willing to waive approximately $198,970 in local development fees such as local SAC/WAC and trunk infrastructure. The City will be fronting these costs and preliminary estimates indicate that they can be recaptured over time through a tax increment financing district. The actual reduction in fees will be based on final tax increment projections when the project is finalized. The City has also provided off -site stormwater ponding for the site. Not only does this allow the entire site to be utilized, but it saves initial development costs and long-term maintenance expenses for the owner.