07-08-2019 Council Packet - Laserfiche WebLink

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• Extension of public water and sanitary sewer to areas currently without service. Will include main lines to service areas east of Hodgson Road. • Extension of trunk water main through development area shortening remaining looping needs for southwest area. • Creation of approximately 130 FTE jobs with average hourly wages of $22.50/hour. • Provision of variety of senior housing options not previously provided for in the City by a well-established twin city care provider. • The applicant will still be subject to all city fees including building permits, trunk utility and park dedication requirements. The developer has submitted an application for public assistance to offset land, infrastructure, and construction costs related to the senior building. The proposed public assistance would be provided in the form of Tax Increment Financing (TIF). The establishment of a Tax Increment Financing (TIF) District requires the preparation of a TIF plan and review by both the school district and county. No comments were received from Centennial School District or Anoka County. Additionally, in accordance with Minnesota Statutes the plan requires that at least 20% of the units will be restricted for persons or families with incomes at or below 50% of the area median income. A public hearing must be held prior to City Council consideration to establish a district. Tax Increment Financing (TIF) Plan The TIF plan provides the framework for the use of tax increment for development purposes. The plan includes the statutory authorization, purpose and objectives of the district. The City/EDA are proposing to establish a Housing District. The maximum duration of a housing district is 26 years from the date of receipt of the first increment. The TIF plan is proposing a maximum duration of 9 years. The primarily purpose of the district is to aid in the construction of the proposed senior housing facility. Tax increment is intended to be used to offset costs related to land, building and infrastructure costs. The plan includes the City’s findings that, in our opinion, due to extraordinary costs associated with the project including land assembly, infrastructure and building, the project would not be reasonably expected to occur solely through private investment. The estimated public costs eligible for reimbursement from tax increment total $3,701,133. Tax increment revenues generated from the development are expected to equal this amount. Approval of the plan and determination of eligible costs does not obligate the City/EDA to any specific district duration or amount of assistance. The determination of any specific assistance package will be part of a separate contract for development. The EDA will be considering approval of a Contract for Private Development on July 22, 2019.