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Department Approval
<br />I`°S'p,aE-41+4
<br />REQUEST FOR COUNCIL ACTION
<br />Date.- June 13,, 2011
<br />Item No..- 11 . b
<br />Acting City Manager Approval
<br />Item Description.- Consider Adoption of Amendment to TIF District 4 18 Plan and
<br />Development District 41
<br />I BACKGROUND
<br />2 On March I I, 200 9,, Aeon,, the owners of the Sienna Green Apartment (formerly known as Har
<br />3 Mar Apartments)l,, submitted a formal request to the City for the consideration to establish a
<br />4 housing to increment financing (TIF), district on their parcel. The purpose of their request was
<br />5 to create a funding source to fill the projected financial gap in the second phase of their initiative
<br />6 to revitalize this aging apartment property. Under Phase 11 of the development, Aeon will
<br />"7 construct a new 50-unit apartment building consisting of a combination of affordable two- and
<br />three-bedroom units.
<br />9 On July 13,, 200 9,, the Roseville City Council established TIF District 418 to assist the project.
<br />I ('_) The TIF Plan identified that the District would generate approximately $,2,194,515 over the
<br />"I'll maximum term of 26 years of the district,, with a present value of $934,481. At the time of the
<br />12 TIF District creation,, it was estimated that AE ON's gap was $,913,6 10.
<br />13 In late 2010,, AEON has secured funding from the MHFA and is now ready to move ahead with
<br />14 the development. Now that the state funding is in place, staff and AEON have been working on
<br />I the TIF Agreement. As part of that discussion, it has become clear that the original TIF plan
<br />16 needs to be amended for several reasons.
<br />I 7 First and foremost,, AEON has acquired a triangular piece of land that previously contained a
<br />I MnDOT easement over it as part of the Hwy. 36 construction. The triangular piece of land has
<br />19 been incorporated as part of the development and will have a very small portion of the new
<br />Z
<br />,,:) building on it. Therefore we need to modify the boundary of the TIF District to include the
<br />2 1 triangular piece of land.
<br />22 Second,, with the completion of Sienna Green Phase 1, (the rehab of the existing units),, the City
<br />23 now has received information from Ramsey County that the values of the rehabbed units are
<br />24 higher than originally estimated. Because of that, the TIF Plan should be amended to reflect the
<br />25 greater amount of TIF that will be generated.
<br />26 Finally, with all of the other financing in place, AEON has identified that actual gap for the
<br />27 Phase 11 project. Initially, it was estimated that AEON would need $,913, 610 in assistance. It
<br />2, has now been determined that the gap is $,935,005. In order for the project to be successful, the
<br />29 TIF Plan budget will need to be amended.
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