05-11-2022 Workshop Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of the City Council FROM: Chris Heineman, City Administrator DATE: May 11, 2022 RE: Updated Financial Analysis and Revenue Projections for proposed Tax Increment Financing Housing (TIF) District (Twin Lakes Apartments) BACKGROUND The City of Little Canada has received an application for financial assistance through Tax Increment Financing (TIF) to assist with financing a portion of the extraordinary development costs related to the construction of a new 60-unit multifamily workforce housing project. City staff is working with Baker Tilly Municipal Advisors to analyze and evaluate the level of financial assistance required to make this project feasible. At the City Council workshop on April 27, Mikaela Huot from Baker Tilly reviewed the developer’s request for assistance and explained the justification for financial assistance. Ms. Huot also explained two potential options for assistance, including the creation of a new Housing Tax Increment Finance District or utilizing Temporary Spending Authority for unobligated tax increment as authorized by the Minnesota Legislature in 2021. Since that meeting, staff has learned that the Ramsey County Housing Redevelopment Authority (HRA) has recommended funding in the amount of $1,500,000 for the Twin Lake 60-unit multi- family housing project proposed by Reuter Walton. The Ramsey County Board of Commissioners will consider the recommended awards at the upcoming meeting on May 17, 2022. This will close the funding gap substantially and leaves approximately $1,000,000 of additional funds needed. The attached memo provides further analysis of the Temporary Spending Authority. According to the analysis, the City of Little Canada has approximately $2.254 M of unobligated funds from all of the City’s districts available for a Temporary Transfer Authority. The proposed project and the unobligated funds meets all of the requirements for use of this source of funding. Huot will be in attendance at the workshop to provide additional details and answer questions.