HomeMy WebLinkAboutCity Council - 03/01/2022 - HRA APPROVED MINUTES
HOUSING AND REDEVELOPMENT AUTHORITY
TUESDAY, MARCH 1, 2022 7:00 PM, CITY CENTER Council Chamber 8080 Mitchell Road HOUSING AND REDEVELOPMENT AUTHORITY MEMBERS: Chair Ron Case, Council Members Mark Freiberg, PG Narayanan, Kathy Nelson, and Lisa Toomey CITY STAFF: City Manager Rick Getschow, Public Works Director Robert Ellis, Parks and Recreation Director Jay Lotthammer, Community Development Director Julie Klima, and City Attorney Maggie Neuville I. ROLL CALL / CALL THE HRA MEETING TO ORDER Chair Case called the meeting to order at 7:02 PM. All HRA members were present. II. APPROVE MINUTES OF HRA MEETING HELD ON DECEMBER 21, 2021
MOTION: Nelson moved, seconded by Freiberg, to approve the HRA minutes from December 21, 2021. Motion carried 5-0. III. ADOPT RESOLUTION NO. 2022-01 MODIFYING REDEVELOPMENT
PROJECT AREA NO. 5, ESTABLISHING TIF DISTRICT NO. 25, AND ADOPTING TIF PLAN AND TIF DEVELOPMENT AGREEMENT FOR THE ELLIE APARTMENTS Getschow explained the Council has received presentations to consider Tax Increment Financing (TIF) for the Ellie. The Ellie is a 4-story mixed-income apartment project that
meets the criteria for a new Housing TIF District. 20 percent of the units, 48 of the 239 total units, will be affordable to residents earning at or below 50 percent of the Area Median Income (AMI). An additional 12 units will be affordable to residents earning at or below 80 percent of the AMI. The remaining 179 units will be market rate. The is Ellie located on Lincoln Lane just east of Eden Prairie Road.
Getschow stated TIF District 25 is being established as a Housing TIF District. The site qualifies as a Housing TIF District because the project will meet the income requirements. The TIF Plan sets up the district for the maximum duration of 26 years. The maximum budgetary authority in the district is $33.28 million. The actual assistance to the property
owner is anticipated to be a present value of $7 million. Total payments, which include interest paid on the $7 million, are projected to be $11.3 million. Getschow stated the TIF Plan assumes Pay-As-You-Go assistance to the developer. Pay As-You-Go TIF requires the developer to seek its own financing secured by all or a portion
of the tax increments generated by the project. In this scenario, the City and HRA do not provide the funding upfront but enter into an agreement to provide tax increment payments
HRA MINUTES March 3, 2022
Page 2 from the increased taxes from the project up to a specific dollar amount over time. If tax increment is not enough to repay the developer, the City does not make up the difference.
MOTION: Narayanan moved, seconded by Freiberg, to adopt Resolution HRA No. 2022-01 Modifying the Redevelopment Plan for Redevelopment Project Area No. 5, establishing TIF District No. 25 (The Ellie Apartments), adopting a Tax Increment Financing Plan, and approving the TIF Development Agreement. Motion carried 5-0.
IV. ADJOURNMENT
MOTION: Toomey moved, seconded by Narayanan, to adjourn the HRA meeting. Motion carried 5-0. Chair Case adjourned the meeting at 7:06 PM.
Respectfully submitted, ___________________________
Nicole Tingley, City Clerk