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

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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. Mr. Belisle commented that without assistance this project could not move forward. City Planner Beekman indicated developers expect to make money over time through a development. The City was not looking to make a profit on the development but was looking to make an investment in the community. Community Development Director Hutmacher added that the cost of building these units would not allow for them to be geared towards workforce housing. For that reason, tax credits and grants reduce the capital costs of development so that rents are affordable. City Administrator Klaers stated the only risk with the development would be if the units were not rented. Mayor Grant questioned how much of the land costs were recouped through the sale of the antenna tower. Mr. Belisle explained he was asked to keep this information confidential. City Administrator Klaers stated the information may be public and available through Ramsey County. Councilmember Holden was in favor of providing some TIF dollars for the project. She was uncertain if the entire $225,000 was necessary. City Planner Beekman questioned if the application with the Minnesota Housing Finance Agency would be jeopardized if the TIF amount was reduced. Mr. Belisle did not feel this would jeopardize the application, as the City was assisting with reduced Park Dedication Fees and a trail. He noted the City did approve a higher density for the site, which assisted the project.