HomeMy WebLinkAbout8A, Renewal of Letter of Support for Arden Village Tax Credit Application�
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EN HII,LS
Request for Council Action �
Prepared By: Jill Hutmacher, Community
DeveIopment Director : Council Meeting Date: May 9, 2011
Renewal of Letter of Support for Arden Village Tax Credit Application
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Recommendation: .
Recommend that the City provide a renewed letter of support for tax credit financing including a
commitment for up to $225,000 in TIF assistance.
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Supporting Documents: �
l. Memorandum dated May 9, 201 l, from Jill Hutmacher, Community Development Director.
2. Renewed 2011 letter of support for MHFA tax credit funding.
3. Map showing location of 1296 County Road F.
4. June 14, 2010, letter of support for MHFA tax credit funding.
5. June 14, 2010, meeting minutes.
6. February 14, 201 l, meeting minutes.
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EN HILLS
MEMORANDUM
DATE: May 9, 2011
TO: Honorable Mayor and City Councilmembers
FROM: 3i11 Hutmacher, Community Development Director �/f
SUBJECT: Letter of Support for Arden Village MHFA Tax Credit Application
Sand Companies, Inc. (SCI) has requested a letter of support for their application for Minnesota
Housing Finance Agency (MHFA) t� credit financing for Arden Village.
Background
Land Use Approvals
• SCI has proposed the development of an affordable rental housing development at 1296 County
Road F. The proposed 4-story building consists of 55 housing units with one to three bedrooms,
a 55-stall underground parking garage, and a 55-stall surface lot. The development would also
include a fot lot playground and picnic area for residents.
The proposal required the property to be rezoned from the current I-1, Limited Industrial District,
to R-4, Multiple Dwelling District. In order to rezone the property, a Comprehensive Plan
Amendment 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-foot
communications tower. SCI requested a Preliminary and Final Plat to subdivide the property
into two parcels, and a Master and Final PUD for the development itself. Because the CUP
encompassed the entire property, a CUP Amendment was needed to reflect the proposed legal
description for the newIy subdivided lot.
On March 8, 2010, the City Council gave land use approvals for the Arden Village project
ineluding Conditional Use Permit Amendment, Rezoning, Comprehensive Plan Amendment,
Preliminary and Final Plat, and Master and Final Planned Unit Development.
� City ofArden Hills
City Council Meeting May 9, 2011
Page 1 of 3
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
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Page 2 of 3
� Recommendation
Given the City's March 8, 2010 land use approvals, the June 14, 2010 good faith commitment
for up to $225,000 of TIF assistance, and SCPs subsequent land acquisition, staff recominends
that the City provide a renewed letter of support for t� credit financing including a commitment
for up to $225,000 in TIF assistance.
At the February 14, 2011, meeting, the City Council questioned for what length of time is the
good faith commitment in place. Staff is not aware of a specific time limitation on
commitments. Given the very complicated nature of funding for affordable housing, and the
progress that SCI has shown since June 14, 2010, it is reasonable to conclude that the City's
pledge of support currently remains in effect.
The City Council may choose to withdraw its piedge for TIF assistance andlor its support for the
project. In that event, the City Council should be aware that the project may not move forward
and the value of its good faith commitment to future developers will be diminished.
Attachments•
A. Renewed 2011 letter of support for MHFA tax credit funding
B. Map showing location of 1296 County Road F
C. June 14, 2010, Ietter of support for MHFA tax credit funding
D. June 14, 2010, meeting minutes
E. February 14, 201 l, meeting minutes
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� City ofArden Hilts
Ciry Council Meeting May 9, 201I
Page 3 of 3
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Attachment
Renewed 2011 Letter of Support for
MHFA Tax Credit Funding
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�EN HILLS
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May 9, 2011, PIanning Commission Meeting
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May 9, 2011
- ��i EN i�ILLS
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Minnesota Housing Finance Agency
Attn: Multifamrly Underwriting
400 Sib(ey Street, Suite 300
St. Paui, Minnesota 55101
RE: Housing Tax Credit Pragram & Super RFP
ARDEN VILLAGE — ARDEN HILL,S
Dear Multifami[y Develapment:
The City af Arden Hilts is a community made up of residents, businesses and institutions sharing a
common history. C?ne of the primary purposes of a community is to serve as a place of residence for its
citizens. Assuming this charge, offering a mix of life cycle housing opportunities becomes a chatienge
for local governments especialiy in suburban markets.
The City has a strang desire ta supparE affordabie and woric-force housing and is an aetive part'tcipant in
ihe Livable Communities Pragram. The City's 2430 Comprehensive Plan sets goals that emphasize the
development 4f a variety of housing types that are suitabte for a mix of incomes includir►g work-force
hausing_ Developers and the City must be partners to cooperatively deve(op housing plans to provide life
� cycle housing in Arden Hills.
To promote and participate in rentat housing opportunities, the City has provided incentives for affordabie
housing developments. As a cost reduction measure to endorse Arden Viilage, ihe City has appraveci the
�roj��t wit� a density bQn�s, flexibility �n zoning a�c� fas� track �e�mitting and approv�l. The �ity weli
a(sa not be cottecting the approximate $71,560 park dedication fee and also waiving $2,400 in City
SACIWAC %es.
The City of Arden Hills also prapases significant tocal financial contributions for this project as part of its
participatron and ettdorsement. If the project is selected for funding, the City Council supports the use tax
increment financing (TIF) for the �roject or other funding means to achieve up to $225,OOQ in assistance.
As part of the TIF, the project witi need to meet alt state guide(ines for TIF, including the "but for test"_
The project aiso must be reviewed under the City's 6usiness subsidy poiicy.
The proposed development is an excellent apportunity for the City of Arden Hills to ►neet a large partion
af its housing goals. This endorsement is based upon the findings that the project wil[ meet locally
ideatified housing needs and that the proposed housing is in shart supply in t6e local housing market.
This need is evidenced by Ehe gap beiween the local supply and demand for the praposed type af housing.
The City Council's endarsement is evidenced by this letter of suppart for the propased development. We
respectivel}r request €unding approval for ihis needed development in the City of Arden Hiils.
Sincerely,
�L7avid Grant
Nonorable Mayar
Cit�� of Arden Hills � 1245 West Highwa�• 96 •:lyden t#iUs, JlIR � 55112-5743
Phone 651.742.7800 � Fax b5l_634.5137 * *�+t+�=.ci.arden-hilEs.mn.ns
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Attachment
Area Map Showing 1296 County Road F
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�I�EN HILLS
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May 9, ZO11, Planning Commission Meeting
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Attachment
June 14, 2010, Letter of Support for
MHFA Tax Credit Funding
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May 9, 2011, Planning Commission Meeting
* -�. DEI�i ILLS
June 14, 2010
Minnesota Housing Finance Agency
404 Sebley Street, Suite 300
St. Paul, Minnesota 55101
Attention: Multifamily Underwriting
RE: Housing Ta�c Credit Pragram & Super RFP.
ARDEN VII.LAGE — ARDEN HILLS.
Dear Multifamily Develapment:
The City of Arden Hiils is a community made up of residents, businesses and institutions sharing a
common history. One of the primary purposes of a community is to serve as a place of residence for its
cirizens. Assuming this charge, offering a mix of life cycle housing opportunities becomes a challenge
for local governments especially in suburban markets.
The City has a strong desire to support affordable and �uork-force housing and is an active participant in
the Livable Communities Program_ The City's 2030 Comprehensive Plan sets goats that emphasize the
development oi a variety of housing types that are suitable for a mix of incomes including work-force
� housing. Developers and the City must be pa�-tners to cooperatively develop housing plans to provide life
cycle housing in Arden Hills.
To promote and participate in rental housing opportunities, the City has provided incentives for affordable
housir�g devel��ments. As a cost redu�tion mersur� to er�arse :�.rden Village, the City has approved the
project with a density bonus, flexibility in zoning and fast traek permitting and approvat. The City wifl
also not be collecting the approximate $71,560 park dedication fee and also waiving $2,000 in City
SAC/WAC fees.
The City of Arden Hills also proposes significan[ loeal finaneiai contributions for this project as part of its
participation and endorsement. If the prolect is selected for funding, the City Council supports the use tax
increment financing (TIF) for the project or other funding means to achieve up to $225,004 in assistance.
As part of the TIF, the project will need to meet all state guidelines for TIF, including the "but for tesY'.
The project also must be reviewed under the City's business subsidy policy.
The proposed deve}oprnent is an excellent opportunity for the City of Arden Hills to meet a large portion
of its housing goats. This endorsement is based upon the findings that the project will meet locally
identified housing needs and that the proposed housing is in short supply in the local housing market.
This need is evidenced by the gap between the lacai supply and demand for the proposed type of housing.
The City Council's endorsement is evidenced by this letter of support for the propased development. We
respectively request funding approval for this needed development in the City of Arden Hills.
Since
� Ha ead,
Honorable Mayor
City ofArcfe�i [�itts � 12�t� �Yest tii<� �t;+ti� 9b � Ardez� (iilts, 1}�t � 5il12-57�t3
1'hnnel�I.?42.7A1in e [�'aa65t.G3-k.>fj7 � ��wu_ri.aE-<ien-Itills.mre.us —
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Attachment
June 14, 2010, Meeting Minutes
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May 9, 2011, Planning Commission Meeting
ARDEN HILLS CITY COUNC[L —.iUNE 14, 20I0 1�
7F Advertfse for Public Works Maintertcznce 6�Yorker- (contir�rrectj
�'" MOTtON: Ca�nciimember Holden moved and Mavor Har stead secUnded a motion to
Authorize Staff to proceed with the hirin� of an ei�hth maintenance Fvarker.
Cauneilmember Holden st�ted the Public Works department has t�ad an increase in warkload
�,vith the I&1, storm pond dredging, trees, field mainienance_ eic. An additianal ��Qrker w�ould
assist in compleiing this work.
Counciln�ember Grant hopeci Mr_ Maoney woufd be able to inerease the eff`ectiveness of tlie
Public Works Department and suggested the eighth hire halc! aff unti! after hicin� a Puhlic Wvrks
[�irecior_ Ne stated he wouid not suppc�rt the additional l�ire.
Conncilmember McClung indicated he wauld support the additiona! hsre as it ��ouid bring [he
Clty baek to its originai Public Works capacit}�-
Conncilmetnber Halden stated the additianal hire �vould reduce the increased oz�ertime that the
departinent has seen in the past severai years.
Councitmember Grant questioned if ali c�vertime wouid be eliminated with this hire.
� ioance Director Iverson stated the overtime wouid nat be eiiminated but should be less as tl�ere
� stili are emerge:ncies witt�in the City_
Counciimember Hoiden expected that overtime shautd �e reduced and used oniy for
emergencies or stanclhy time.
$_ UNFIIYISNED BUSINESS
A. Arden Village Workforce Housi�g Pro�osal — Updated Letter of Support for
the Housing Tax Creciit Application
Community Develapment Direc[or James Lehnhoff stated the Council was being asked to
consider approving an updated Ietter of support for Sand Companies, Inc.'s hc>usin� tax credit
�tpplication to Ehe Minnesota Hc�usin� Finance Agency for the a_5�-unit t�orkfcsrce housing unit
calied Arder� Village at 1296 County Raad F for an amount nc�t ta exceed $22�.000 or $S75,OQ0.
5arYd Companies was seeking local funding at one t�f the t�vo amounts, Gption 1 would not
include the comrrtunica[ions low�er, while Option 2 would_ An additional waiver was being
requested to reduee the SAC/WAC fees by $2,000 as this �yould add �n additiona! point �o the tax
credit application. Ramsey Caunty would cc7ntribute $3i.Q00 to the project_ He explained the
(=inance Pianning and Analysis C'ommittee revie�ued both options a��d felt both �vere viable
aptions for the Cst�_
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ARDEN I�ILLS CITY COUNCIL — JUNE 14, 2010 11
8A_ Arden Village Workfot-ce Housing Proposa! — Updated Letter of Support for the Housing �
Tcix Credit Application (continued)
MOTION: Ma��or Harpstead moved and Councilmember Grant seconded a motion to
Approve the updated Letter of Support for Sand Companies, Inc.'s housin�
tax credit application to the Minnesota Housin� Finance Agencv for the
Arden Villa�e project at 1296 County Road F for an amount not to exceed
�22�,000, alon� with the $2,000 waiver in the SAC/WAC fees.
Councilmember ��olden questioned what other funding �vould be used beyond TIF.
Community Development Director Lehnhoff clarified that this would allow the City to waive
bui(ding permit fees or other fees in lieu of TI�.
Councilmember McClung stated he wiil support Option 1 but feit Option 2, with the
communication tower would provide the City a great opportunity_
Councilmember Grant indicated he would have supported the communication tower as well;
however time did not permit a full review_ He explained he would be supporting Option l.
The motion carried on a 3-1 vote. (Hoiden opposed)
B. Elmer L. Andersen Memoriat Trail Signage Approval �
Parks and Recreation Manager Otson revieti�ed the signage history of the Eimer L. Andersen
Memorial Trait (EAMT) with the Council. She indicated staff budgeted $1 �,000 for the trail
signs fram the SY�c�al Reveriue gar[c �'ur�d. i1uoies were received from three sign companies and
the low bid came in at $19,645 with the City's portion being $1 �,36�. This inciuded two pillars at
County Road E and [ndian Place. Ramsey County has agreed to purchase one smalter pilIar at the
Lake Johanna Boulevard entrance for a construction and installation price of $4,300. Design costs
totaling $2,170 would aiso be due to Derrek Hames. The Parks, Trai( and Recreation Committee
recommends the final design to Council. The Elmer L_ Andersen family has expressed their
appreciation for dedicating this trail to their father and is honored to have been included in the
design process for this signage. The signs production and installation will take approximately 2`/2
to three months from approval and the PTRC expressed interest in planning a dedication
ceremony for the Memorial Signage this fall.
Councilmember Holden questioned how many signs �vere being purchased and asked the
expected Iife expectancy of these signs_
Parks and Recreation Manager Otson indicated four signs were heing purchased for three
different locations. She stated the sign company recommended a high end product to resist graffiti
and outdoor vvear and tear_
Derrek Hames, sign designer commented the signs would be fixed to concrete tubes with bolts_ �
The proposed material is the best technology available and was used at the new TCF Stadium.
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Attachment
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F ebruary
14, 2011, Meeting Minutes
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-i�1j�EN HILLS
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May 9, 2011, Planning Commission Meeting
ARDEN HILLS CITY COLTNCIL — February 14, 2011 5
S.A. Adopt Resolution 2011-006: Accepting Work Completed and Authorizing Finad Payment
• of $18, 862. ZS for the 2010 Sewer Lining Project (continued)
quantity was due to an increase in linear feet being done or if it was the result of increased pipe
sizes. He requested that in the future an explanation outlining the exact reason for the increases be
provided to the Council. The project was under the budgeted amount even with this increase. He
requested Staff provide additional information in the next Administrator's Update.
MOTION: Councilmember Holden moved and Mavor Grant seconded a motion to Adopt
Resolution 2011-006: Acceptin� Work Completed and Authorizing Final
Pavment of $18,862.25 for the 2010 Sanitary Sewer Lining Proiect. The
motion carried unanimouslv (4-0).
6. PUBLIC HEARINGS
None.
7. NEW BUSINESS
A. Cable Franchise Agreement
City Administrator Klaers stated the 15-year franchise agreement with Comcast is up for
� renewal in 2013. The North Suburban Communications Commission (NSCC) is requesting
approval of a Resolution which wilI reinforce the City's permission to allow NSCC to renegotiate
the franchise renewal on behalf of Arden Hills. This Resolution will make it ciear that NSCC has
the authority to negotiate this renewal.
MOTION: Councilmember Holden �oved and Councilmember Holmes seconded a
motion to Aanrove Resolution 2011-007 Which Reinforces the Citv's
Approval to Have North Su6urban Communications Commission Renegotiate
the Franchise Renewal on Behalf of Arden Hills. The motion carried
unanimouslv (4-0).
B. Approve Resolution 2011-008 in Support of Arden Village HOME/CDBG
Application
Community Development Director Jill Hutmacher stated Sand Companies, Inc. (SCI} has
requested support of their application for the Ramsey County HOME Investment Partnership
Program (HOME) or Community Development Block Grant (CDBG) funds for Arden Village.
SCI has proposed the development of an affordable rental housing development at 1296 County
Road F. The proposal required the property to be rezoned and that the City's Comprehensive Plan
be amended. On March 8, 2010, the City Council gave land use approvals for the Arden Village
project including Conditional Use Permit Amendment, Rezoning, Comprehensive Pian
Amendment, Preliminary and Final Plat, and Master and Final Planned Unit Development. SCI
�was unsuccessful in the last round of Minnesota Housing Finance Agency (MHFA) tax credit
funding. SCI is now trying to fill its funding gaps so that it wilI be more competitive in the next
ARDEN HILLS CITY COLINCIL — February 14, 2011 6
7.B. Approve Resolution 2011-008 in Support of Arden Village HOME/CDBG Application •
(continued)
round of taY credit funding. SCI intends to apply for $300,000 in Ramsey County HOME or
CDGB funds. Applications are accepted annually and are due on February 25, 2011. The
application requires a resotution of support from the City. With the City's March 8, 2010, land
use approvals and the June 14, 2010, good faith commitment for up ta $225,000 in TIF assistance,
SCI closed on the purchase of Iand in December 2010, and is currently pursuing funding to fill its
funding gaps. If SCI is awarded HOME or CDGB funds, and having already received land use
approvals and acquired the land, they should be quite competitive for the next round of MHFA tax
credit funding. An updated letter of support including a restatement of the City's good faith
commitment for TIF assistance will be needed for SCPs June 2011, MHFA t� credit funding
application, which will be requested at a later date.
Mayor Grant clarified the deadline for this application is different from the deadline for the
Housing Tax Credit grant application.
Community Development Director Hutmacher clarified the grant that is being applied for at
this time is the Ramsey County HOME/CDBG and the deadline for this is February 25, 2011.
The MHFA tax credit funding has two funding cycles with the majority of their funds being
allocated in the June cycle. SCI did receive a small amount of $35,000 from Ramsey County in
November.
Mayor Grant asked if th�s project was classified as work force housing or affordable housing. �
Community Development Director Hutmacher stated the project is classified as work force
housing but the ierm affordable housing in general includes work force housing. Work force
housing is exclusively for those individuals that are working or have some form of income.
Mr. Jamie Thelen, CEO for Sand Companies, Inc. stated the project is for individuaIs that have
some form of income and this can include seniors. In other facilities they have built, the one
bedroom design has been popular for seniors and the two and three bedrooms are designed more
for families. He clarified seniors do not have to be working but they must have a form of income.
Councilmember Werner stated there was $1.6 million available with the HOME/CDBG funds.
He asked what the chances were that SCI would be able to secure the $300,000 they would be
requesting.
Mr. Thelen stated he did not know what requests there would be this year. He stated it has been
several years since Arden Hills has received any funds so this may increase the chances that they
are able to receive funds. He stated this application with Ramsey County is the second time SCI
has applied and in June it will be third application for MFHA with last year's application being
the first application in the Iarge allocation round.
Councilmember Holden clarified the only time a person needs to prove income for this �
development is at the time of application for an apartment.
ARDEN HILLS CITY COLJNCIL — February 14, 2011 7
7.B. Approve Resolution 2011-008 in Support of Arden Village HOME/CDBG Application
� (continued}
Mr. Thelen stated this was correct.
Councilmember Holden stated when the TIF run was originally done it was set at a m�imum of
up to $225,000, which was based on the cost of the land and other factors. She asked if the price
that SCI paid for the properiy when they closed on it in December was the same as the amount
that was used in the TIF run.
Community Development Director Hutmacher answered that she did not have the amount that
was paid at closing available and was not sure at this time if it was the same number that was used
in the TIF run. In order to determine TIF eligibility a new TIF run would need to be reviewed.
Mr. Thelen stated he did not have the exact amount but a purchase agreement had been provided
to the City when the original TIF run was performed. The price that SCI paid for the property is
the same as the amount that was on the purchase agreement.
Councilmember Holmes asked for clarification regarding how the SCI project that was
completed in White Bear Lake would support additional TIF funding in Arden Hills.
Community Development Director Hutmacher stated the prior TIF runs had been based on the
� estimated assessed value of the property and the projected t� revenue the properiy would
generate. The t�-assessed values were lower than what was expected. The SCI project in White
Bear Lake is similar to the one being proposed in Arden Hills and the values are higher on this
property. SCI is questioning if the values that were being estimated for the Arden Hills
development were lawer thari they ought to be, especially when compared to a similar project that
has been completed. SCI would like to have this reviewed.
Mayor Grant clarified the City was being asked to endorse up to $225,000 in funding but not
committing to a TIF District.
Councilmember Holden clarified that even if the TIF runs show the project was eligible for
$225,000 the City could approve any amount they wished up to this maximum.
Community Development Director Hutmacher stated the City had previously approved a Ietter
of support for up to $225,000 in TIF funding, based on the but/for analysis and SCI receiving
funding from MFHA. SCI is requesting support from the City for their application to Ramsey
County for the HOME/CDBG funds.
City Administrator Klaers stated the letter of support provided to SCI in June for up to
$225,000 in funds is not a guarantee but is a good faith commitment and it would be difficult for
the City to back out of this.
� Councilmember Holden clarified that by supporting the application to Ramsey County the City
was providing a commitment to up to $225,000 in TIF because the project is based on this
amount.
ARDEN HILLS CITY COLTNCIL — February 14, 2011 g
7.B. Approve Resolution 2011-008 in Support of Arden Village HOME/CDBG Application �
(continued)
Community Development Director Hutmacher stated the City made a good faith commitment
in June for up to $225,000 in TIF funding and SCI has invested time and money into this project
based on this information. SCI has also used this information when applying for other funding for
the project. The City can choose to provide a lesser amount and the City would need to approve a
TIF District.
Councilmember Holden stated the June 14, 2010 Resolution was support for the MFHA
application in June. She asked how long this letter would be in effect.
Community Development Director Hutmacher stated it is not unusual for this process to take a
long time but she could not say if there was a set time frame for expiration.
City Attorney Jerry Filla stated SCI was asking for this resolution to clarify the support the City
offered nine months ago with its June 24101etter. He asked Mr. Thelen if this was correct.
Mr. Thelen stated SCI was looking at adding another funding source to cover the $1.7 million
gap for the project and this would provide for additional points when they reapply for MFHA
funds in June. SCI is not asking the City to change its commitment at this time. They may come
back to the City in a couple of months to review this commitment but at this time SCI is asking
for the City's support in applying for the Ramsey County HOME/CDBG funds. �
City Attorney Filla clarified the resolution was for support of the grant funding application only
and not a change in the TIF commitment.
Councilmember Holden stated the whole foundation of the resolution rests on the commitment
of TIF.
Mr. Thelen stated he did not know if Ramsey County would be asking if there was any local
participation in the project and so he did not know if the 3une 14, 2010, letter of support would
need to be included in the application. The letter from June 14, 2010, providing a good faith
commitment from the City for up to $225,000 in TIF funding is completely separate from the
request to support SCI's grant application to Ramsey County. SCI will ask the City for an
updated letter of support, including TIF funding, for the grant application to MFHA in June. SCI
understands that the City is under no obligation to support or approve an increase in the TIF
support previously approved.
Councilmember Holmes stated at this time she would not be comfortable with not agreeing to
the TIF support at this time. SCI purchased the property for the development based on the City's
commitment. The City has a commitment to stand by the June 14, 2010, letter for a reasonabie
length of time.
Mr. Thelen stated SCI has done a market study for the project. The recently completed project in �
White Bear Lake has been successful. SCI has gotten the approvals from the Planning
Commission and the City Council for the project. SCI purchased the property in hopes of
continuing the project.
ARDEN HILLS CITY COLINCIL — February 14, 2011 9
7.B. Approve Resolution 2011-008 in Support of Arden Village HOME/CDBG Application
• (continued)
Councilmember Holden agreed the City has made a commitment up to $225,000 in TIF funding
but not an increased amount even if the TIF run supported more. She asked how much funding
the developer had invested in the project.
Mr. Thelen stated the owner and developer have equity, related to the ta�c credits, into the
development in the amount of $5.6 million of $IO milIion total project cost and this amount is not
reimbursed back to the owner or developer.
MOTION: Councilmember Holden moved and Councilmember Holmes seconded a
motion to Approve Resolution #2011-008 in SuppOt't of Arden Village
HOME/CDBG Application.
Mayor Grant stated the record should reflect the Council referenced the previous memo of June
14, 2010, which indicated up to $225,000 in TIF funding as part of the discussion on approving
the request to support the grant application to Ramsey County.
The motion to approve Resolution #2011-008 was called to a vote.
The motion carried (3-1: Councilmember Holdenl
• City Administrator Klaers stated the TIF commitment is not good forever. He stated FPAC is
aware of this issue. The length of time may be a matter of legal issue and should be discussed.
City Attarney Fi�la stated the approvals that were granted in March 2010 might be close to
expiring. He asked if the City has received extension requests for this project.
Mr. Thelen stated the county just f nalized review of the final plat so SCI should be able to
complete the filing next week. The PUD approval expires in the spring and he would check the
exact date. SCI would be coming back to the City with a request for extension on the building
permits.
8. UNFINISHED BUSINESS
A. Senator Goodwin Meeting Update
Councilmember Holmes stated on February 9 there had been a meeting facilitated by Senator
Goodwin. Representative Knuth, 2 representatives from Ramsey County, 5 representatives from
MnDOT, City Administrator Klaers, Public Works Director Maurer, Councilmember Holden and
Chris Chromey from Bolton & Menk were in attendance. The timing for the I-694 improvements
at Snelling Avenue had been discussed. The improvements are scheduled to start in August 2011
and be completed by August 2013 and I-694 will not close during the improvements at Snelling
�Avenue. Additionally, the Highway 10 and County Road 96 project wilI be starting in 2012. The
State has indicated agreement that due to the I-694 and Snelling project, there will be additional