09/24/2012 Council Packet - Laserfiche WebLink

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MEMORANDUM Date: September 24, 2012 To: Mayor and Council From: Mary Alice Divine Re: Economic Development Work Session Update Items for Discussion 1. Anoka County proposal to purchase Legacy site 2. Dominium Townhome project 3. Lino Lakes Assisted Living expansion 4. Industrial user prospect 5. Financial impact of above projects Dominium Townhome proposal Mayor Reinert requested that this be put on the agenda for further discussion regarding the housing type the council would like to see in Lino Lakes. Staff requested clarification from Dominium on a number issues Council brought up at the last meeting. Dominium responded as follows: 1. Senior Housing Senior housing is not compatible with the programs we are using for project funding. The Minnesota Housing Finance Agency (MHFA) 9% low- income housing tax credit ( "LIHTC ") allocation process has various threshold requirements. The following project types meet threshold for the metro area: • Single room occupancy housing • Family housing where at least 75 percent of the total units contain two or more bedrooms and at least one -third of the 75 percent contain three or more bedrooms • Substantial Rehabilitation projects We would not be able to obtain a 9% tax credit allocation for a senior project. Furthermore, the tax credit equity generated by the allocation accounts for over 70% of our project funding. Without a LIHTC allocation the project we are proposing is not financially feasible. To meet threshold, we would need to build a project with 2 or more bedrooms in 75 percent of the units with a third of those units being 3 bedrooms or more. This is how Lakewood Apartments met threshold.