05-09-11-R - Laserfiche WebLink

Home Browse Search

ARDEN HILLS CITY COUNCIL — May 9, 2011 5 A. Renewal of Letter of Support for Arden Village Tax Credit Application Community Development Director Hutmacher stated Sand Companies, Inc. (SCI) has requested a letter of support for their application for Minnesota Housing Finance Agency (MHFA) tax credit financing for Arden Village. SCI has proposed the development of an affordable rental housing development at 1296 County Road F. The proposal required the property to be rezoned from the current I -1, Limited Industrial District, to R -4, Multiple Dwelling District. In order to rezone the property, a Comprehensive Plan Amendment was also required. SCI requested a Preliminary and Final Plat to subdivide the property into two parcels, and a Master and Final PUD for the development itself. Because the Conditional Use Permit (CUP) encompassed the entire property, a CUP Amendment was needed to reflect the proposed legal description for the newly subdivided lot. On March 8, 2010, the City Council gave land use approvals for the Arden Village project including CUP Amendment, Rezoning, Comprehensive Plan Amendment, Preliminary and Final Plat, and Master and Final Planned Unit Development. Subsequent to the land use approvals, SCI requested a letter of support for tax increment assistance. Local financial assistance is very important in leveraging tax credits, grants, and loans from other funding providers. SCI needed a letter of support for tax increment assistance prior to its application for tax credits from the MHFA. On June 14, 2010, the City Council voted to proceed with approving TIF support of up to $225,000, and a letter of support was provided to SCI. With the City's March 8, 2010, land use approvals and the June 14, 2010, good faith commitment for up to $225,000 in TIF assistance, SCI closed on the purchase of land in December 2010. With the tentative award of Ramsey County HOME funds, and having already received land use approvals, SCI should be very competitive for this round of MHFA tax credit funding. An updated letter of support is needed for SCI's June 2011, MHFA tax credit funding application. At a future meeting, SCI will request City approval of tax increment district. Prior to approval, the City Council will need to determine whether the final financial analysis demonstrates the need for the requested support. Staff recommends that the City provide a renewed letter of support for tax credit financing including a commitment for up to $225,000 in TIF assistance. At the February 14, 2011, meeting, the City Council questioned for what length of time the good faith commitment is in place. Given the very complicated nature of funding for affordable housing, g and the progress that SCI has shown since June 14, 2010, it is reasonable to conclude that the City's pledge of support currently remains in effect. The City Council may choose to withdraw its pledge for TIF assistance and /or support for the project. In that event, the City Council should be aware that the project may not move forward. Councilmember Holden clarified SCI had applied for tax credits in the spring of 2010 and been denied and the application they put together in June of 2010 was for the October 2010 grant application. Mr. Jamie Thelen, CEO Sand Companies, Inc. stated this was correct. MHFA has two awards per year. The application for the larger award is due in June and there is a supplemental or smaller fund award in the spring with an application deadline in September. At this time the application that SCI is putting together is for the larger MHFA tax credit award and they would not know if they had received any funding until October of this year. The application deadline is June 14.