06-23-2025 Workshop Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Fischer and Members of the Little Canada City Council FROM: Ben Harrington, AICP, Community Development Director DATE: June 23, 2025 RE: TIF and Conduit Bond Support Request – 99 County Road B – Lupe Development ACTIONS TO BE CONSIDERED Consider LUPE Development’s revised financing requests, including a modified TIF proposal and a request for conduit bond support, for a 106-unit senior affordable housing development at 99 County Road B. BACKGROUND LUPE Development has submitted a revised request for the City of Little Canada to establish a tax increment financing (TIF) district in support of its proposed affordable senior housing project at 99 County Road B. The proposed development includes 106 units of income-restricted rental housing for seniors. At its June 11, 2025, meeting, the City Council directed staff to counter the developer’s original TIF request with an offer of $200,000 or a 5-year term, whichever is less. The intent of this limited assistance was to offset the developer’s share of public infrastructure costs associated with the project. Council also expressed concerns about the long-term general fund impact and limited public benefit associated with the originally proposed 26-year TIF. In response, LUPE has revised its request. The developer is now seeking a base TIF of $200,000 or a 5-year term, with a conditional increase tied to the outcome of its pending $910,000 LCDA grant application. Specifically, LUPE proposes that the TIF term or amount increase proportionally to offset any shortfall in the LCDA award, up to a maximum TIF of $800,000/26 year term. Staff and the City’s TIF consultant continue to recommend maintaining the offer of $200,000 or five years, whichever is less. Should the developer’s LCDA grant request fall short, the Council may consider revising the TIF amount at that time, but any such change should be based on a clear demonstration of financial need and public benefit. LUPE is also requesting that the City adopt a preliminary resolution of support for conduit revenue bonds issuance in the amount of approximately $17 million. Staff are generally supportive of the bond request. As outlined in the memorandum from bond counsel (Taft), the proposed issuance carries no financial obligation for the City and offers several benefits: • The bonds are conduit financing only; LUPE is solely responsible for repayment and issuance costs. • The issuance does not count against the City’s $10 million bank-qualified bonding limit, preserving flexibility for municipal or nonprofit projects in 2025.