06-08-2022 Council Packet - Laserfiche WebLink

Home Browse Search

City of Little Canada, Minnesota Baker Tilly Municipal Advisors, LLC Page 2 2) to make an equity or similar investment in a corporation, partnership, or limited liability company that the City determines is necessary to make construction of a development that meets the requirements of the law financially feasible. The City Council must approve a written spending plan by December 31, 2022 (after a properly noticed public hearing) that specifically authorizes the City to take such actions. The City must provide to the Office of the State Auditor a copy of the spending plan approved and signed by the City. As identified within the Minnesota Office of the State Auditor’s August 2021 Statement of Position - Temporary Transfer Authority (2021 Law) included as Exhibit I, any tax increments authorized under the spending plan must be transferred out of the applicable TIF Fund by December 31, 2022 and spent by December 31, 2025. Any funds unspent shall be returned to the originating TIF Fund. The City has been working in partnership with Reuter Walton Development, LLC on a new affordable housing project (the “Project”) in the City, of which 10% of the units will be affordable for occupants with incomes no greater than 30% AMI (area median income) and the remaining units will be affordable for occupants with incomes no greater than 60% AMI. The proposed project has a financial gap, for which additional financial resources are necessary to allow for the project to proceed. The City has identified this Project as a potential qualifying use for which unobligated tax increments as further described in the next section of the Spending Plan will be necessary to fill a financial gap and allow for construction to occur. The assistance provided pursuant to this Plan shall be subject to Minnesota Statutes, Sections 116J.993 to 116J.995 (the “Business Subsidy Law”), if applicable, and shall be subject to the City’s Business Subsidy Policy. Section B Unobligated TIF Funds The City has identified an estimated total of $1,011,495 of unobligated tax increments that are anticipated to be available as of December 31, 2022 within the TIF Districts. It is anticipated the unobligated tax increments will be used on eligible costs of the affordable housing project that may include acquisition, site improvements/preparation costs, other qualifying improvements, construction of affordable housing and other related expenses associated with development of the project. Section C Spending Plan Under the Spending Plan, the City is authorized as follows: 1. To use unobligated tax increments from the TIF Districts to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities in financing assistance to further the goals in the City’s Comprehensive Plan or other City plans or objectives, if doing so will create or retain jobs in the state, including construction jobs. Each project shall be considered and subject to approval by the City. The assistance authorized under this Spending Plan is intended further the goals within the City’s Comprehensive Plan and other City plans or objectives. Preference for financing assistance will be for the proposed affordable housing apartment project including acquisition, site preparation, affordable housing construction and other development costs related to construction of the project. The Project shall commence before December 31, 2025 (unless a later commencement date is authorized by law)