06-10-2026 Council 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 Bryce Sheeran, City Administrator Date: June 10, 2026 Re: LAHA Funds Distribution Agreements – 99 County Road B – Affordable Senior Housing Development Actions To Be Considered: Motion to approve, table, or not approve: • The Development Agreement between the City of Little Canada and LC Apartments, LP, and the companion Memorandum of Understanding by and among the City, LC Apartments, LP, and FFAH V LC Senior Apts MN, LLC, regarding the 106-unit Little Canada Senior Apartments project at 99 County Road B East; to authorize the Mayor and City Administrator to execute both agreements; and to authorize the expenditure of up to $200,000 from the City’s Local Affordable Housing Aid (LAHA) fund balance for the LAHA-qualified senior housing Background: This is one of two final sets of actions for the City Council to take on the proposed development at 99 County Road B East, a 106-unit, 100% affordable senior (age 55+) multi-family apartment complex. In 2023, the City approved a Planned Unit Development (PUD) and a Zoning Map Amendment, rezoning the 2.63-acre parcel from General Commercial (C-1) to High-Density Residential (R-3). The City has subsequently supported the project in grant applications to the Met Council, DEED, and with its bond application to the OMB. During the preliminary project review and utility capacity analysis, public works staff identified that the current municipal infrastructure requires a lift station upgrade to support the increased wastewater flow from the 106-unit complex. The developer’s proportional share of this required infrastructure upgrade was calculated at $200,000. The City Council has previously reviewed the financial and infrastructural parameters of this project. To facilitate the viability of this development, a financial incentive of up to $200,000 was identified. Staff initially evaluated utilizing Tax Increment Financing (TIF) to fill this gap. However, given the relatively small dollar amount required and the front-ended nature of the infrastructure cost, a traditional TIF district would generate minimal annual increments and create disproportionate administrative and compliance costs for both the City and the developer. Consequently, utilizing Local Affordable Housing Aid (LAHA) was determined to be a more efficient and appropriate tool.