7C, Sand Companies Request for a Letter of Support for Housing Tax Credits

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fencing around the property. Secondly, the higher request takes into account the proposal to sell the tower to the City, which results in a loss of revenue to SCI. If the tower is not sold to the City, the need for public assistance would be reduced. However, the higher number allows the City to continue exploring the possibility of purchasing the tower but does not obligate the City to purchase the tower. Additionally, the higher number would increase the number of points awarded the proj ect through the MHFA application process, making award of tax credits for the proj ect more likely. SCI is also applying for a HOME grant from Ramsey County. According to Mary Lou Egan at Ramsey County Community Development, SCI may receive a small amount of funding, perhaps $35,000, in 2010 to support their tax credit application to MHFA. Funding from the County would increase SCI's chances of receiving the tax credits. The project may be eligible for up to $300,000 in support from the County, but they will not tie up the funds in 2010 for a project that is not scheduled to start until 201 l. SCI will not know if additional County funds are awarded until May 2011, but Ms. Egan said the proj ect has a good chance of being selected in 2011 because of its location and housing needs in Arden Hills. Grants received by SCI would be factored into the public subsidy evaluation and would reduce any requested need from the City accordingly. Land Use Apl�rovals The Arden Village proposal received all necessary land use approvals at the March 8, 2010, City Council meeting. Timeline and Letter of Support The deadline for the housing tax credit application is June 15, 2010. In order to complete the tax credit application and meet the submittal deadline, SCI would need the letter of support from the City by June 1, 2010. MHFA will make its determination by October 28, 2010. If the tax credits are approved, SCI will move forward with the formal application for public assistance with the c ity. Assuming the tax credits are awarded and the public assistance request is �nalized, SCI anticipates starting construction in early 2011 and opening in 2012. Attachment Proposed Letter of Support City ofArden Hills City Council Meeting for May 10, 2010 I IMetr�o-inetl ardenhills IAdmin I CouncillAgendas � Packet Information 1201015-10-10 RegularlPacket Information 1051010 - CC Memo - Arden Village - Sand Companies.doc Page 3 of 3