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HomeMy WebLinkAbout7B, Approve Resolution 2011-008 in Support of Arden Village HOMECDBG Application. "��- EN HILLS Request for Council Ac�ion Prepared By: 3i�1 Hutmacher, Coinmunity Davelopment Director Caunc�l Meeting Date: �ebruary 14, 201 I Approve Resalutian 2011-008 in S�pport of Arden Village HOME/CDBG Application Bndgeted Amount: Actual Amount: Funding Source: N/A NIA N/A Recommendation• 1. Motian to Approve Resolution No. 2011-00$ in Support of Arden Village HOME/CDBG Applica�ion. Supporting; Documents: 1. Men�o dated February 14, 2011, from Community Deve�ap�nent Director Jill Hutmacher. 2. Resolvtion No 2011-008 — A Resoiution of Support for Sand Compa�ies, Ine.'s Request for HOME or CDBG Gran� Ft�nding. 3_ June I4, 2010, Letter oi Suppart for 11/�IFA Tax Credit Funding. 4. June 14, 2010, Meeting Minutes {Page t0 and 1I). � EN HILLS MEMORAND[�M DATE: February 14, 2011 TO. Honorable Mayor and City Councii FR4M: Jill Hutmacher, Comrn.uniiy Development Director � SUBJECT: Resolution af Support far Arc�en Village HOME/CDBG Applicat�on Sand Companies, Inc. (SCI) has requested a z-esolution of support far their application for Ramsey County HOME Investment Partnership Program (HOME) or Coznrr�unity Developrnent Block Grant {CDBG) funds for Arden Village. Back�ronnd Land Use A rovals SCI has proposed the developrnent of an affordable r�ntal housing deveIopment at 129b County Road F. The proposed 4-story building cansists of 55 housing units with one to three bedrooms, a 55-stalI underground parking garage, and a 55-stail surface lot. The development would also include a tot lot playground a�:d picnic area for residents. The proposal required the property to be rezaned iram the current I-1, Limited Industrial District, to R-4, Multiple Dwelling District. In arder to rezone the properiy, a Comprehensi�e �'lan Aznendment was also required. Prior to recent City land use approvals, the 2.76-acre property operated under a Conditional Use Permit (CUP) that was approved in 1972 for a 240-foat communications tower. SCI requested a Preliminary ar�d Final Plat to subdivide the property into two parcels, and a Master and Final PUD for the development itsel£ Because the CUP encornpassed the entire property, a CUP Amendment was needed to reflect tne proposed legal description for the newly subdivided lot. On March� 8, 2010, the City Council gave laz�d use approvals for th� Arden Village project iz�cluc�ing Conditional Use Fermit Amendment, Rezoning, Cornprehensive P(az� Annendment, Preliminary and FinaI Plat, and Master and Final Planned Unit Development. City of�frden Hrlls City Courrcil Meetirrg February 14, 2011 Page 1 of 3 Tax Zncrement Financzn�quest Subsequent to the land use appro�als, SCI requested a letter of support %r fiax increment assistance. Although the request for tax increment assistance was relatively smaIl in relation to total projects casts, local financial assistance is very impartant in leveraging ta�c credits, grants, and loans frozxt other funding providers. SCI needed a Letter of s�pport for tax increment assistance prior to its appiication for t� credits from th� Minnesota Housing Finance Agency (MHFA). On June 14, 2010, the Council considered two options for t�e MHF`A letter af support: 1. Letter of support for up to $575,000 which would include TIF and a transfer of ownership of the wireless torver; and 2. TIF-only with support of up to $225,oaa, understand�ng that City s�pport at this level would leave Arden Village with a gap. As stat�d in the June 14, 2010, memo, "Based on the updated financial data and directian from the May 10 Council nneeting, SCI has prepared two possible public subsic�y st�ategies depending on whether ar not ihe City wants to pursue ownership of the tower. The Ciiy will need io select or�e of the two options for the Let�er of support that is submit�ed to MHFA for SCI's application. Whichever opt�on is selected, the City would be affering a good faith commitment to provide the requested amount of support to the project provided that SCI recei�es the housing tax credits and the fnal �nancial analysis de�ons�rates the need for the requested support." The City Council voted to proceed with Option 2 above, and a letter of support for up to $225,000 in TLF' assistance was provided. Ramsev Countv HOME Application SCI was unsuccessfuI in the last round of MHFA tax credit funding. SCI is now trying to fill its funding gaps so that it will be more competitive in the next round of iax credzt funditag. SCX intends to apply far $300,000 in Rarrtsey Counry HOME or CDBG funds. Ramsey County receives an annual allocation oi federal CDBG funds of a�proximately $1 �x�.illion and federaI HOME funds of approxiz�nately $600,Oa0. The funds are distributed throughout th� County on a competitive application basis. Applications are accepted annually and are due on February 25, 201 L The appIicatian requires a resolution of support frotn the City. With the City's March $, 2010, land use approvaIs and the June 14, 2010, good faith commitrnent for up to $225,000 in TIF assistance, SCI closed on the purchase of land in December 2010 and is currently pursuing funding to �iIl its funding gaps. If SCI is awarded HOME or CDBG funds, and ha�ing already received Iand use approvals and acquired the land, they should be quite competitive for the next round of MHFA tax credit funding. City of�trden Hills City Council Meetirrg Fehruary 14, 2011 Page 2 af 3 An updated letter of s�pport including a restatement oi the Ciry's gaod faith co�nnnit�ent for TIF assistance will be needed for SCPs June 201 l, MHFA tax credit funding apptication. The MHFA l�tter of support will be requested at a later date. It is possible that a stabalized economy and the completion of a similar SCI project in W�ite Bear Lake may alter the tax projections and TIF runs. If that occurs, SCI has indicated it may request additional T�F assistance as supported by revised TIF runs, and the City Cauncil may evaluaie any request for additionaI assistance at that tizxae. � any case, City approval of a tax increment district will be necessary. Prior to appro�al, the City Council will need to determine whether the final f r�ancial analysis demonstrates the need far the requested support. Attachments• A. Resalution of support of Sand Companies, Inc.'s request for HOME or CDBG grant funding B. Map showing location of 129£ Caunty Raad F C. June 14, 2Q10, letter of support for MHFA tax credit funding D. June 14, 2010, rneeting minutes City ofArderr Hills City Council Meeting February 14, 2011 Page 3 of 3 Attachment Resolution No. 2011�-008 � EN HTLT,S City of Arden Hills City Council Meeting for February 14, 2011 � EN HILL� CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NU. 2011-008 A RESOLUTiON OF SUPPQRT QF SAND COMPANYES, INC,'S REQUEST FOR HOME OR CDBG GRANT FUNDING WHEREAS, Sand Co�panies, Inc. has praposed the development of a 55-unit workf'orce housing development knovcm as Arden Village to be Iocated at 1296 County Road F; WHEREAS, the City o�Arden Hills granied land use approvals for the A.�rden Village development on March 8, 2010; WHEREAS, Sand Campanies, Inc., is applying for HOME Inves�ment Partner�hip Program {HOME) or Cornmunity Development Block Grant (CDBG) funds allocated to Ranasey County; NOW THEREFORE, BE IT RESOLVED ihat ihe City Caunc�� of Arden Hills, Minnesota supports the request by Sand Companies, Inc. for HOME ox CDBG grant funding through Ramsey County fox the proposed Arden Village �rorkforce k�ousing development. ADOPTED BY THE CITY COUNCIL 4F THE CITY OF ARDEN HILL� THI� 14`� DAY OF FEBRUARY, 2011. David Grant, Mayor ATTEST: Patrick Klaers, City Administrator Attachment Area Map Showing 1296 County Road F �. -� JHit,T,S City of Arden Hilds City Council Meeting for February 14, 2011 Attachment June 14, 2 01 o Letter of Support for M H FA Tax Credit Funding � �EN HILI.S City of�Irden Hzlls City Council Meeting for February 14, .2011 s, i a r ,�e; �.: �. � �. `', �UIl� � 4� 2� � � Miunesota Housing Finance Agency 400 Sibley Street, Suite 300 St. Paul, Minnesota 55101 Attention: Multifarr�ily Underwriting RE: Housing Tax .Credit Program & Super RFP. ARDEN �7ILi,AGE - �,R7�EN HILL�, Dear Multifamily.Devel�pment: The City of Arden Hills is a community made up af residents, businesses and inst�tutians sharing a common history. One of the primary purposes of a community is to serve as a place of residenee %r its citizens. Assuming this charge, offering. a mix nf Iife cycle housing opportunities becomes a chall�nge for.locaI gavemments especially in subur�an markets. The City :has a sirang desire to support affardahle and wark-force housmg and is an ac#ive pai-ticiparit in the Li�abie Coinmunifiies Program. The City's 2D30 Comprehensive Plan sets goals iflat erriphasize the development of a variety of �iousing types that are suitable for a rnix of incornes including work-force housing. Developers and the City rnust he part�riers to. cao�erati�eiy dsve:Iop hausing plans to provide Iife cycle housing in Ard�n HiIIs. To promote and participate in renfal. housing apportunities, the City �.as provzded incent�ves far affordable housing, developments. As a cast reduction measur� ta endorse Arderz Viliage, the City has appraved the projeet with.a density bonus, flexibility. in zoning and fast track permitting and approval. The City will alsa not be collecting the approximate $71,SG0 park dedication fee and also waiving $2,004 in Cily SAC/VVAC f�es. Th.e City of Arden HiIls also proposes significant locaI financial contributions for tihis project as part of its participation and endorsemen�. If the project is selected for funding, the City Council supports the use tax increment �nancing (TIF} for the project or other funding means to achieve up to $225,440 in assistance, As part nf the TIF, the project will need to meet all state guidelines fo�• TIF, including the "but for test", The project also rnust he reviewed under the City's business subsidy poticy. The propnsed de�veloprr�ent is an excellent opportunity for the City af Arden'Hilis to meet a large portion of .its housing goals. This endorsement is based upon the ftndings that the project will �neet locally identi�ied housing n�ecis and that the propased.housing is in short supply in the Ioaal housing market. This need is evi.denced by ihe gap be#ween the lacal supply and demand for the proposed type af 1�ousing. The City Cauncil's endorsement is evidenced by this tetter of suppor� for the proposed develapment. We respectively request fitnding approval far this needed development in the City of Arden Hi11s. Since a Ha ead, 'Honorable Mayor City� ofArden Hiils 4 1245 Wesf �ii�rvay 9fi �.��•de�� Hilis., MN � Si�i2-5743 :Phane 651.792.7800 � Fsix 65.i.�3a.5:i37 A ��'S"F'�V.C1.7E'(IL'It-iElI�S•[if[1,11S Attachment June 1q., 2 01 o Meeting Minutes � EN HILLS City ofr�rden Hills City Council Meeting for February 14, 2011 ARDEN HILLS CITY COUNCTL -� JUNE 14, 2010 10 7F. Advertise for Public Worlrs Maintencrnce Worker (continued) MOTION: Conncil�nember Holde�n moved and Ma or Har stead seconded a motion Yo Aut�or�ze Staff to receed with the hirin of an c� hth �naintenance worker. Ca�ncilmember Holden statec� the Pub�ic Wor�Cs department has had an increase in w•orkload with the I&�, starm po�td drec3ging, trees, field rnaintenance, etc. Ar� additional worker woula assist in cornpleting this work_ CouncilrneEnber Grant hoped Mr_ Maor�ey wouid be able to tncrease the effectiveness of �he Public Wor�Cs Department and suggester� the eighth hire hold off until after hiring a PubIic Works Directo�r. He stated he would not supporE tl�e additionaI hire. Counciirriernber McClung indicated he would support the ac�ditional hire as it L�ouid bring ihe City 6ack to its originai Public Worics capacity. Councilrnember Hoide� stated the additior�al hire wauld reduce the inereased overtitne that the department has seen in the past several years. Councilmember Grant questioned if all ove�irne wottld be eliminated with this hire. Fi�ance Directar �versan stated the overtime would not be eliminated but should be less as there stil� are ernergencies within the City. Cae�ncilmernber HoE�fen expected that overtirne should be reduced and used oniy for emergeneies or standby time_ S. UNFINiSHED BUSINESS A. Arde� Village Worlcforce Housing Proposal — Upd�ted Letter af Suppart for the Housir�g Tax Credit Application Cornmunity Deve�oprnent Director J�mes Lehnhoff stated the Councii was bei�g asked to cansic�er approving ar� updated letter of support for Sand Companies, Ine.'s housi��� tax credit a�plication to the Minnesota Housing Finance Agency for the a 55-unit workforce housing �nit called Arden ViIlage at 1296 County Road F for an atnount not to exeeed $22�,000 or $�75.000. Sand Campanies was seeking iocaI funding at one of the two amounts, Opiion 1 would not include the communications tawer, while Option 2 woul�. An addi�ional wai�er was being requested to red�ce the SAC/WAC fees by $2,000 as this would add an adc�itio�al point to the tax credit appIication. Ramsey County would contribute $35,000 to the project. He explainec� the �'inance PIanning and Analysis Cat�mittee reviewed both options and feli both were viable options for the City. ARDEN H�LLS CITY COLTNCIL — JUNE 14, 2010 1 i SA. Arden Village Workforce Housing Proposal — Updated Letter of Support for the Housing Tax Credit Application (continued} MOTION: Ma or Har stead moved and Council�nember Grant secondec� a motian to A rave the u dated Le�ter of Su ort for Sand Com anies Inc.'s housin tax credit a lica#ion to the Minnesofa Hansin Finance A enc for the Arden Vilta e ro'ect a# �296 Coun Road F for an a�no�unt not ta exceed �225 000 alon with the $2 000 waiver in the SAGWAC fees. Councilmember Holden quesiioned what other funding would be used beyond TTF. Co�munity Development Director Lehnhoff clarified that t�►is would ailow the City to waive building permit %es or other fees in iieu of TIF. Councilmember McC�ung stated he r�il support Option 1 but felt Option 2, with the cammunication tower would provide the City a great opportunity. Councilmember Grant indicated he would have supported t�e communication tawer as well; however time did not permii a full review. He explain�d he wouid be supporting Option 1. The rr�otian carried on a 3-�. vote. Holden a osed B. Ei�ner L. Andersen Mcmorial Trai[ Signage Approval Parks and Recreation Manager Olsan reviewed the signage history of the El�er L. Andersen Memorial Trail (EAMT) with the Counci�. She indicated staff budgeted $15,000 for the trail sigz�s frorr� the Special Revenu� Park Fund. Quotes were received from three sign cornpanies and the low 6id came in at $19,645 with the City's portion being $15,365. This included two pillars at Caunty Road E and Indian Place. Ramsey County has agreed to purchase one smaller pillar at the Lake .Tohanna Boulevard entrazzce for a consiruction and installation price of $4,300. Design costs totaling $2,170 would also be due ta Derrek Hames. The Parks, Trail �nd Recreatio� Comrnittee recornmends the irnal design to Council. The Elmer L. Andersen family has expressed their appreciation far dedicating this trail to their father and is honored to have been includEd in the design process for this signage. T�e signs pz-oductian and instailation will take approximately 2% to three manths from approval and ihe PTRC expressed interest in planning a dedication ceremony for t�►e Memorial Signage this falt. Councilmember Holden questioned how many signs were being purchased and asked the expected life expectaricy of these signs. Parks and Recreation Manager Olson indicated faur signs were being purchasec� far three different locations. �he stated the sign compaz�.y recommended a high end product to resist graffiti and outdoor wear and tear. Derrek Harr�es, sign desagner commented t�te signs vvould be fixed io concr�te tubes with bolts. The proposed maierial is the best technology avai�able and was used at tl�e new TCF Stadium.