9A, Letter of Support for Arden Village MHFA Tax Credit Application and Extension

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March 19, 2012, Council Minutes Arden Village Review and Update City Planner Beekman presented the City Council with information on Arden Village. She explained that Sand Companies was the developer for the project and were seeking a letter of support for their 2012 tax credit application for the Minnesota Housing Finance Agency. The application deadline is late May. In preparation of this application, the developer requested an opportunity to speak with the Council and discuss the project in further detail. City Planner Beekman explained Arden Village is a 55-unit four-story building with workforce rental housing located at 1296 County Road F. The development would also include a tot lot playground and picnic area for residents. At the time of the approval a zoning code amendment 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