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HRA Meeting Minutes – Tuesday, May 20, 2014 Page 4 1 Nays: 0 2 Motion carried. 3 4 Chair Maschka thanked Mr. Weingarten and Ms. Kelsey for implementing this strategy. 5 6 c. Sherman and Associates Redevelopment of 2785 Fairview Avenue 7 Ms. Kelsey reviewed the requested action, as detailed in the staff report dated May 20, 2014; 8 in addition to the draft Resolution No. 57 as previously noted as a bench handout, attached 9 hereto and made a part hereof. Recognizing that this was a complicated issue, and involved 10 as number of funding sources needing to be met, including use of tax increment financing 11 (TIF) funds at the discretion of the City Council. 12 13 Ms. Kelsey advised that the proposed development met four of the seven criteria developed by 14 the City Council’s TIF Plan for the Twin Lakes Redevelopment Area, as noted in Section 3.0 15 of the staff report. In a related note, Ms. Kelsey advised that the Greater Metropolitan Housing 16 Corporation did not receive additional funded needed from Ramsey County and had therefore 17 withdrawn their request for CDBG funds from Roseville, leaving a current balance of 18 approximately $270,000 (page 2 of the staff report). Ms. Kelsey reviewed other funding 19 mechanisms, including Livable Community Development Account (LCDA) funds, with the 20 developer having submitted a preliminary application at this time to assist with infrastructure 21 and demolition costs, including the road construction identified as completion of Twin Lakes 22 Parkway. Ms. Kelsey advised that it would remain unknown until later this month whether the 23 developer would be invited to submit a formal application to the Metropolitan Council. 24 25 Ms. Kelsey clarified the definition of “affordable housing” in this instance to describe 26 workforce housing as outlined in the staff report (Section 2.0) and income ranges accordingly, 27 and non-age restricted units. 28 29 Ms. Kelsey advised that staff recommended approval, as the proposal supported the three top 30 priorities and housing needs identified in the Comprehensive Market Study completed in 31 2013to build market-rate rental units and provide affordable housing for seniors and families; 32 in addition to achieving goals outlined in the RHRA’s 2012-2016 Strategic Plan. 33 34 Ms. Kelsey noted that, as provided in the staff report, the developer originally proposed 35 construction of the two buildings, totaling 190 units and 6,000 square feet of retail as a two- 36 phase development. However, Ms. Kelsey noted that in order to meet the requirements for 37 Housing TIF Districts requiring 20% of the units meeting income restrictions, it had been 38 determined to build both phases at the same time and meet the affordable housing 39 requirements. Ms. Kelsey advised that it was challenging to find investors to buy tax credits; 40 and upon checking with the state, no one else was applying for the credits and would allow use 41 of 4% tax credits along with mortgage revenue bonds from the Minnesota Housing Finance 42 Agency (MHFA), with application deadline of June 10, 2014, and applications only accepted 43 once per year. Ms. Kelsey noted that, in order to sell tax credits, the entire 190 units, including 44 80% affordable units, needed to be built as a mixed income property. Ms. Kelsey advised that 45 the developer was proposing to accomplish this requirement by reducing the total number of 3- 46 bedroom units and add more 1- and 2-bedroom units. Ms. Kelsey noted that this would be in 47 line with staff findings supporting seniors moving into affordable units with elevators and 48 other amenities desired; with that modification accepted by the state if the older adult 49 population was inhabiting the buildings. 50 51 Ms. Kelsey further reviewed the developer’s request that the City assist with its costs for sewer 52 access charge (SAC) fees, and explained those fees and how they applied to this development. 53 54 Ms. Kelsey reiterated that there were many steps yet to be completed and a complicated 55 process involved; however, she recommended RHRA support of the proposed development as