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......... <br />HILLS <br />MEMORANDUM <br />DATE: September 14, 2009 <br />TO: Mayor & City Council <br />FROM: James Lehnhoff, Community Development Director <br />SUBJECT: Arden Village Workforce Housing Concept Proposal — Letter of Support <br />Sand Companies, Inc <br />Action Request <br />Motion regarding Sand Companies, Inc request for a letter of support for housing tax credits with <br />the Minnesota Housing Finance Agency as proposed in the September 14, 2009, memorandum. <br />Backiround <br />At the August 19, 2009, work session, the City Council reviewed a presentation from Sand <br />Companies, Inc (SCI) to construct a 55 unit workforce rental housing building at 1296 County <br />Road F. The 2.74 acre property is immediately west of the Land O' Lakes headquarters and <br />includes a communications antenna that would remain on the site. <br />SCI has requested a letter of support from the City for a housing tax credit application with the <br />Minnesota Housing Finance Agency (MHFA). Additionally, SCI is requesting $400,000 in <br />public assistance. Applications with community financial support score higher and have a better <br />chance of obtaining the housing tax credits, which are a key part of making the building <br />affordable. The public financial assistance could be in the form of Tax Increment Financing <br />(TIF) or relief from other development fees. <br />Cottage Villas at 3744 Cleveland Ave N. a senior affordable rate rental building, is a past <br />example of a project that received housing tax credits and TIF assistance. <br />Public Financing Options <br />The City has two TIF options: creating a new TIF district or extending the existing Cottage <br />Villas TIF district. If TIF is used, the City would not need to identify which option is being used <br />at this time. The letter of support would just note that the City is offering the use of TIF. Either <br />City of Arden Hills <br />City Council Meeting for September 14, 2009 <br />IlMetro-inetlardenhillsUdminl CouncillAgendas & Packet Information12009109-14-09 RegularlPacket Informationl7E 091409 - CCMemo - <br />Arden Village - Sand Companies.doc <br />Page 1 of 3 <br />