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HomeMy WebLinkAbout08/01/2024 EDAC Combined PacketCITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, August 1, 2024 8:00 A.M. Community Room AGENDA 1. Call to Order and Roll Call 2. Approval of Minutes: June 6, 2024 3. Discussion Items A. Local Housing Trust Fund B. Main Street Corridor Master Plan Engagement discussion C. Updates 4. Adjournment DRAFT MINUTES CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: June 6, 2024 TIME STARTED: 8:00 a.m. TIME ENDED: 9:12 a.m. MEMBERS PRESENT: Blakely LaCroix, Don Johnson, Patrick Kohler, Nathan Vojtech, Jim Schueller, Chad Wagner, Chris Spenner MEMBERS ABSENT: Keith Hembre, Andrew Cravero, Steve Marchek STAFF PRESENT: Michael Grochala, Julie Whitney 1. CALL TO ORDER Mr. Grochala called the Economic Development Advisory Committee meeting to order at 8:02 a.m. on June 6, 2024. 2. APPROVAL OF MINUTES Mr. Kohler made a motion to approve the May 2, 2024 meeting minutes. Motion was supported by Mr. Wagner. Motion carried 6 - 0. 3. DISCUSSION ITEMS A. Financial Security Requirements During the May 2, 2024 meeting the EDAC questioned what requirements the City has to make sure that improvements are completed for development projects. Mr. Grochala stated that the City’s “Official Controls”, require the deposit of a financial security to assure the City that public improvements are constructed or installed according to the specifications of the City. There are three types of security that may be used and include cash, irrevocable letter of credit or surety agreements. Mr. Grochala explained all three. Mr. Kohler asked who owns the land in the case of a default. Mr. Grochala said the land continues to be owned by the property purchaser. In the event that there is a default on a mortgage it could revert to the mortgage holder. Special assessments levied by the City stay with the property unless it goes tax forfeit. In this case , the City has other remedies available. Economic Development Advisory Committee June 6, 2024 Page 2 DRAFT MINUTES B. Proposed Residential Moratorium Mr. Grochala presented the staff report. Mr. Grochala said the first inquiry was from Pulte Homes to develop on the north side of main street. They approached the council in February 2024 and presented a Del Webb retirement community. The area Pulte is interested in developing is in the post 2030 utility staging area. This area will be served by utilities coming from the south side of Main Street. Mr. Grochala said Madinah Lakes came in around the same time and was interested in the property where the previous Promenade showed interest in 2022. It had a very similar layout but introduced the mosque and some commercial buildings within the development. Mr. Grochala said they planned on completing a master planning process including examination of the transportation system, utilities, parks and an environmental review. Mr. Grochala also clarified the affected area for the moratorium. Mr. Schueller questioned if it goes over the one year is there a way to request an extension. Mr. Grochala said there can be up to a six-month extension but it needs to meet certain requirements. Mr. LaCroix also asked if there are any legal implications to the City for requesting the moratorium. Mr. Grochala said there could be challenges but the City has statutory authority to plan and implement a moratorium. Mr. Kohler asked if there would be an open house for the residents for the environmental review. Mr. Grochala said community engagement will be a core component of the process. Mr. Kohler asked what would happen to property taxes if the moratorium was put into place. Mr. Grochala said it is not City wide and shouldn’t have a large impact on economic development efforts. He noted that the City is getting commercial development inquiries along the 35E corridor. He acknowledged that the moratorium could give off some negative connotations for perspective developers. C. Project Updates Mr. Grochala updated the committee on current City projects. • Water Treatment Plant is out for bids • 35E interchange construction is planned for 2025 • Anoka County is starting a design process for Sunset Ave. between Main and 109th • Culver’s starting construction • 49 & J project underway • Otter Lake Road extension plan preparation underway Economic Development Advisory Committee June 6, 2024 Page 3 DRAFT MINUTES 4. ADJOURNMENT Mr. Vojtech made a motion to adjourn the meeting at 9:16 a.m. Motion was supported by Mr. Blakely. Motion was carried 7 - 0. Respectfully submitted, Julie Whitney, Community Development Administrative Assistant ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Mike Grochala, Community Development Director EDAC MEETING DATE: October 11, 2023 TOPIC: Local Affordable Housing Aid (LAHA) BACKGROUND In 2023 the Minnesota Legislature approved a new metro-wide sales and use tax for affordable housing. The purpose of the aid is to help metropolitan local governments develop and preserve affordable housing within their jurisdictions. The annual appropriation comes from a sales and use tax imposed within Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington Counties. Cities with a population of over 10,000 within these counties are eligible to receive aid. As discussed previously with the EDAC, the City of Lino Lakes will begin receiving funds in 2024. The City has three years from the receipt of the local affordable housing aid to spend it on a qualifying project. Any unspent funds must be transferred back to Minnesota Housing Finance Agency. Funds are considered spent on a qualifying project if they are transferred to a local housing trust fund. Ehlers and Associates provided an overview of the program to the EDAC in October of 2023. A copy of their memorandum is included for committee review. The EDAC previously supported the idea of establishing a local housing trust fund for purposes of administering the housing aid. This would allow the City additional time to establish a program and expend funding. Staff has prepared a draft ordinance for discussion purposes. The provision includes a range of both funding sources that could go into the fund as well as potential uses of the funds. Legislatively this gives the City the most flexibility as we evaluate potential program options. EDAC CONSIDERATION Staff is requesting EDAC comments on the proposed ordinance and any additional information necessary to advance the proposal. ATTACHMENTS 1. Ehlers Memo, October 2023 2. Draft Housing Trust Fund Ordinance • • • • • • • • • Public Hearing: Draft Posted to Website: 1st Reading: Publication: 2nd Reading: Effective: CITY OF LINO LAKES ORDINANCE NO. XX-24 AN ORDINANCE ESTABLISHING AN AFFORDABLE HOUSING TRUST FUND The City Council of Lino Lakes ordains: Section I. Chapter XX, of the Lino Lakes City Code is amended by adding Article XX to provide as follows: Article XX. AFFORDABLE HOUSING TRUST FUND XXX.XX. Definitions. The following definitions apply in this Article. Persons of very low income means families and individuals whose incomes do not exceed 50 percent of area median income, as median income was most recently determined by the United States Department of Housing and Urban development for the Minneapolis-St. Paul- Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and larger families. Persons of low income means families and individuals whose incomes do not exceed 80 percent of the area median income, as median income was most recently determined by the United States Department of Housing and Urban development for the Minneapolis-St. Paul- Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and larger families. Persons of moderate income means families and individuals whose incomes exceed 80 percent, but do not exceed 115 percent, of area median income, as median income was most recently determined by the United States Department of Housing and Urban development for the Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and larger families. XXX.XX. Pursuant to the authority granted to the city under Minnesota Statutes Section 462C. I 6, an affordable housing trust fund is established to provide loans and grants to for-profit and non-profit housing developers for the acquisition and capital and soft costs necessary for the creation of new affordable renter and owner-occupied housing, and for the acquisition, rehabilitation and preservation of existing affordable housing including Naturally Occurring Affordable Housing (NOAH). XXX.XX. The Affordable Housing Trust Fund shall be funded from multiple sources including: (a) Buy-in funds from Developers. (b) Private cash donations from individuals and corporations designated for the Affordable Housing Trust Fund. (c) Payments in lieu of participation in current or future affordable housing programs. (d) Grants and loans from a state or federal source (e) Principal and interest from Affordable Housing Trust Fund loan repayments and all other income from Trust Fund activities. (D The sale of real and personal property. (g) Local government appropriations, development fees and other funds as designated from time to time by the city council. (h) Tax Increment Finance (TIF) pooled funds. XXX.XX The city may use money from the Affordable Housing Trust Fund to assist proposed projects or programs to develop or preserve affordable housing for persons of very low, low and moderate income to include: (a) Making loans at interest rates below or at market rates in order to strengthen the financial feasibility of proposed projects. (a) Guaranteeing of loans. (b) Enhancement of county, state, and federal affordable housing programs. (c) Financing the acquisition, demolition, and disposition of property for affordable housing projects. (d) Funding or financing the rehabilitation, remodeling, or new construction of affordable housing. (e) Funding to facilitate affordable homeownership opportunities including down payment assistance, second mortgages, closing costs, etc. (f) Interim financing of public costs for affordable housing projects in anticipation of a permanent financing source (i.e. construction financing, bond sale, etc.) (g) Other uses as permitted by law and approved by resolution of the city council. XXX.XX. The city shall determine the terms and conditions of repayment of loans and grants from the Affordable Housing Trust Fund including the appropriate security and interest, if any, should repayment be required. Interest on loans and grants shall be as established by the city from time to time or at the time of approval of a specific project or program. XXX.XX. Financial Oversight. The City Administrator, or designee, will administer and supervise the affordable housing trust fund account and the city’s Finance Director will administer the fund. Adopted by the Lino Lakes City Council this ____ day of ________________, 2024. ____________________________ Rob Rafferty, Mayor ATTEST: ________________________ Roberta Colotti, CMC City Clerk 1 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala, Community Development Director EDAC MEETING DATE: August 1, 2024 TOPIC: Public Engagement, Main Street Corridor Study BACKGROUND On July 8, 2024 the City Council adopted Ordinance 11-24 establishing a moratorium on residential development around the Main Street corridor between Sunset and 4th Avenue. The purpose of the moratorium is to allow for the completion of a master plan and Alternative Urban Areawide Review (AUAR) for the area. The moratorium is planned to go into effect on August 15 and will last for one year. Staff is currently working on consultant selection to assist with the planning process. A key component with the project will be community engagement. In preparation for developing an overall project scope staff is seeking input from the EDAC on potential stakeholders. Our initial thoughts include the following stakeholders: • Property Owners • Adjacent Neighborhoods/Community at large • Developers • Resident advisory boards o EDAC o P&Z o Environmental o Park • Public agencies i.e., County Highway Dept, Watershed District, School Districts Staff is also interested in the EDAC’s thoughts on the type of information, types of media, and forms of outreach. Is there a need for a baseline information, such as What do we already know? How does development process work? What does the Comp Plan mean and say? Broadcast, print or electronic/social media – what do you as board members use the most or prefer? The consultant team will certainly have expertise and suggestions with this component, but it is helpful hearing from the board and we move to develop a scope of services. EDAC CONSIDERATION Discussion on public engagement. ATTACHMENTS 1. Project Area Map