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WORK SESSION AGENDA ITEM NO, 5 REQUEST FOR COUNCIL DISCUSSIONIDIRECTION DATE: 04/20/98 ITEM NO: art nt Approval: Manager Approved: Agenda section: lteih Description: John Mathern: Discussion - Senior Housing Eligibility for TIF 1.0 REQUESTED A C TION 1.1 John Mathern, developer of the Senior Housing Project on county Road 88, has requested direction on whether a senior rental project would be eligible for TIF assistance. 2,0 BACKGROUND 2.1 The 30-unit project cost will be $2.9 million, while the market rent can justify a project cost of$2.3 million. The gap is $600,000. Mr. leathern is requesting a pay- as-you-go TIF District for up to tern (10) years to recoup the financial gap. 2.2 Mr. Mathern has submitted an appraisal and estimate of cost for the project which is attached. The market rate price of these u n its will average $900/month because of the added costs for underground parking, exterior brick, stucco and interior finishes. (An alternative to senior rental construction may be a second condo building, if financing and the market would support it.) 2.3 The Roseville TIF policy does allow TIF to be used for housing and redevelopment. The site is currently a paged industrial parking lot. 2.4 The current policy (page 4, Section K, ''v") states that TIF may be used as a construction or rent subsidy for lour income housing of all types. 2.5 section K, "vi" states that construction subsidies, up to ten (10) dears, may be available for multifamily structures because of high quality materials, design, and construction with a construction value of at least 133% of the current building valuation. 3.0 CouNCJL DIRECTION SOUGHT 3.1 Direction is sought regarding establishment of a TIF District for senior market rate apartment housing and the appropr;ate policy for establishment. Attachments: Mathem Appraisal; TIF Policy, pages 1-4 Prepared by: Dennis Welsch (413o-2232)) MARCAWATHERN.498 Mathern RCA(04/20/98)-Page 1 of 1