10-23-2024 Council Packet - Laserfiche WebLink

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4. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Development District by private enterprise. The reasons supporting this finding are set forth in Section J(4) of the TIF Plan. 5. Section J of the TIF Plan is incorporated herein by reference. The City Council will hold a public hearing on Wednesday, October 23, 2024 to consider approval of the TIF District within the Development District, after making the findings outlined above. Multiple steps are followed to allow for establishment of a tax increment financing district, including notifications to the County and School District, publication of a public hearing notice, and the holding of a public hearing. Notices have been sent to the County Commissioner on September 11 and County and School Board (draft TIF Plan and fiscal and economic impacts) on September 23. Publication of the hearing notice for the TIF District creation was October 11 in the Pioneer Press newspaper. The public hearing to consider this project is Wednesday, October 23, 2024. The public hearing date is the time in which City Council would take any public comment, and after the hearing, consider the adoption of a resolution approving the TIF District. Project Qualifications To establish the area identified as a Housing TIF District, the project as proposed will need to qualify. Housing districts are a type of tax increment financing district that consist of a project intended for occupancy, in part, by persons or families of low and moderate income. Low and moderate income is defined in federal, state, and municipal legislation. A project does not qualify if more than 20% of the square footage of buildings that receive assistance from tax increments consist of commercial, retail or other non-residential use. In addition, housing districts are subject to various income limitations and requirements for residential property. For owner occupied residential property, 95% of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 143(f) of the Internal Revenue Code. For residential rental property, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. The TIF District meets the above qualifications for these reasons: 1. The planned improvements consist of the following: o Approximately 160 total units, for which at least 40% of the dwelling units shall be available for rent by persons whose incomes do not exceed 60% of areawide median family income, as adjusted for family size. 2. No improvements are planned other than housing and therefore no more than 20% of the square footage of buildings included in the TIF District will consist of commercial, retail, or other non-residential uses. 3. The City will require in the development agreement that the income limitations for the rental units in the apartment buildings will apply for the duration of the TIF District. Tax increments derived from a housing district must be used solely to finance the cost of housing projects as defined in section 469.174, subd. 11 and 469.176, subd. 4d of the TIF Act. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the City may be included in the cost of a housing project. Terms of TIF Development Agreement a. Developer: RIDE Limited Partnership b. TIF District: Tax Increment Financing Housing District No. 7-4 within Development District No. 7 c. Property: Parcel IDs: 07.29.22.22.0065, 07.29.22.22.0038, 07.29.22.22.0040, 07.29.22.22.0041, 07.29.22.22.0042 d. Grant: Potential local funding opportunities including LCDA and Ramsey County e. Project: Construction of new 160-unit multifamily housing project with estimated 17 1-bedroom, 98 2-bedroom and 45 3-bedroom units with underground and surface parking spaces and supporting amenities f. TIF Assistance: Pay-as-you-go TIF Note with maximum principal amount of $1,000,000 plus interest at 6% rate for up to 26 years