03-19-12-WS - Laserfiche WebLink

Home Browse Search

ARDEN HILLS CITY COUNCIL WORK SESSION—MARCH 19, 2012 2 was approved changing the site from Industrial to High Density Residential. The City previously approved a letter of support for up to $225,000 of TIF for this development. Staff recommended the Council discuss the project along with the letter of support. John Belisle, Midwest Housing, discussed the Arden Village Development further noting that the project planning began in 2009. He noted this is a high quality project with the goal being to create workforce housing geared towards working families. He noted Sand Companies has been in business for 20 years. The rental rates were discussed in detail, along with income limits. He noted credit and criminal background checks are completed on each renter. Mr. Belisle commented he has completed four applications for this project to the Minnesota Housing Finance Agency. He indicated additional funding sources were being sought to subsidize the reduced rental rates. Arden Village received an earmark for $250,000 in home funds last year from Ramsey County, which will be given again in 2012. Mr. Belisle stated that tax credits for housing projects are granted on an extremely competitive basis. For this reason, he is seeking a City Council letter of support for the 2012 tax credit application for the Minnesota Housing Finance Agency. Councilmember Holden requested further information on the project's financing and how the programs are funded. Mr. Belisle reviewed a chart with the Council. City Administrator Klaers requested City Planner Beekman discuss the City's low to moderate income housing goals as approved by the Metropolitan Council Mr. Belisle stated he had reviewed the 2030 Comprehensive Plan when this project began. City Planner Beekman stated the Met Council assigns a certain number of housing units to each community for low to moderate income housing units based on demographics and rate of projected growth. The community is then expected to adopt these goals and participate in the Met Council's Home Program. At this time, the City's goal is to add 288 affordable housing units by 2020. Participation in the Met Council's Home Program is required to receive any grants and funding available from the Met Council; however, she noted the program was voluntary. City Planner Beekman explained the need for affordable housing is made visible through this program. She reported Arden Village met the affordable housing standards. Mr. Belisle stated the local participation allows for additional funding opportunities through the Met Council Further discussion ensued regarding the application process with the Minnesota Housing Finance Agency and tax credits. Councilmember Holmes expressed concern that funds were being requested from the City when the developer was not investing the same amount. The developer was receiving tax credits to cover their expenses while the City would be out $225,000 in TIF money.