8A, Renewal of Letter of Support for Arden Village Tax Credit Application

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Tax Increment Financin�guest � Subsequent to the land use approvals, SCI requested a letter of support for tax increment assistance. Although the request for tax increment assistance was relatively small in relation to total projects costs, local financial assistance is very important in leveraging t� credits, grants, and loans from other funding providers. SCI needed a letter of support for tax increment assistance prior to its application for t� credits from the Minnesota Housing Finance Agency (MHFA). On June 14, 2010, the Council considered two options for the MHFA letter of support: 1. Letter of support for up to $5�5,000 which would include TIF and a transfer of ownership of the wireless tower; and 2. TIF-only with support of up to $225,OOQ, understanding that City support at this level would leave Arden Village with a financial gap. As stated in the June l4, 2010, memo, "Based on the updated financial data and direction from the May 10 Council meeting, SCI has prepared two possible public subsidy strategies depending on whether or not the City wants to pursue ownership of the tower. The City will need to select one of the two options for the letter of support that is submitted to MHFA for SCI's application. Whichever option is selected, the City would be offering a good faith commitment to provide the requested amount of support to the project provided that SCI receives the housing tax credits and the final financial anatysis demonstrates the need for the requested support." The City Council voted to proceed with Optian 2 above, and a letter of support for up to $225,000 in TIF assistance was provided. • Minnesota Housing Finance Agencv Tax Credit Apnlication SCI was unsuccessful in the last round of MHFA t� credit funding. SCI has been working to fill its funding gaps so that it will be more competitive in the next round of tax credit funding. SCI has been tentatively approved for $250,000 in Ramsey County HOME funds which will be structured as a loan with the terms set by the County. With the City's March 8, 2010, land use approvaIs 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 HOME funds, and having already received Iand use approvals and acquired the land, SCI should be very competitive for this round of MHFA taac credit funding. An updated letter of support is needed for SCPs June 2011, MHFA tax credit funding application. At a future meeting, SCI will request City approval of a ta�c increment district. Prior to approval, the City Council will need to determine whether the final financial analysis demonstrates the need for the requested support. City of Arden Hills City Council Meeting May 9, 2011 � Page 2 of 3