10-23-2024 Council Packet - Laserfiche WebLink

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Memo To: City of Little Canada City Council Members Chris Heineman, City Administrator From: Mikaela Huot, Director Date: October 23, 2024 Subject: Tax Increment Financing Plan for Tax Increment Financing (TIF) District No. 7-4 (RIDE Housing Project) Executive Summary The City of Little Canada is considering the establishment of a Tax Increment Financing Housing District (“TIF District”) to assist with financing a portion of the costs associated with construction of a five story 160-unit multifamily apartment housing building with 118 enclosed parking stalls and 153 on site surface parking spaces on an approximately 3.09-acre project site. The building will be a mix of one, two and three-bedroom units. In order to comply with the requirements of a Housing District, at least 40% of the units will be occupied by persons/families with income no greater than 60% of the area median income (AMI). The developer is proposing that 100% of the units will be occupied by persons/families with incomes no greater than 60% AMI. The TIF Plan has been drafted utilizing assumptions for the new development. The budget of tax increment revenues and estimated public costs are based on anticipated new taxable value of approximately $36M upon completion of the project. Construction of the new development on the project site is projected to be 50% completed in 2025 and is expected to be fully constructed by December 31, 2026, and be 100% assessed and on the tax rolls as of January 2, 2027, for taxes payable 2028. The City anticipates using tax increment revenues to finance eligible costs associated with development of the project site including acquisition, demolition, site development/improvements, public improvements and other affordable housing costs, as well as related administrative expenses. Process for TIF District Establishment A Tax Increment Financing District is established within a Project Area. The City’s Project Area is Development District No. 7. The City is considering the establishment of the TIF District to facilitate construction of a 160-unit housing development. A map showing the boundaries of the proposed Tax Increment Financing District No. 7-4 (RIDE Housing Project) within Development District No. 7 is included in the TIF Plan. The City is proposing to adopt the Tax Increment Financing Plan for Tax Increment Financing (Housing) District No. 7-4 (RIDE Housing Project) within Development District No. 7 pursuant to Minnesota Statutes, Section 469.174 to 469.1794. The TIF Plan is adopted as the tax increment financing plan for the TIF District, and the City Council makes the following findings: 1. The TIF District is a housing district as defined in Minnesota Statutes, Section 469.174, Subd. 11, the specific basis for such determination is set forth in Section J of the TIF Plan. 2. The proposed development in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future. The reasons for such determination are set forth in Section J(2) of the TIF Plan. 3. The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City as a whole. The reasons for supporting this finding are set forth in Section J(3) of the TIF Plan.