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Item No: 01 MOUNDT �T Meeting Date: April 2, 2018 S VfE-W Type of Business: Work Session Administrator review: �L City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Beeman, Business Development Coordinator Item Title/Subject: Discuss "The Triton" Housing Project Introduction: Newport Midwest, LLC is partnering with Journey Home MN to create 61 units of affordable housing including four units set aside for military veterans and their families at 4889 Old Highway 8 at the Skyline Motel site. Newport envisions a four-story "L" -shaped structure with underground parking as well as a small surface parking lot. All units will be affordable to individuals and families with incomes at or below 50% of AMI. 57 units will be less than or equal to 50% AMI and 4 units will be less than or equal to 30% AMI. The developer has submitted an application for a Housing TIF to the City in order to meet the gap in financing the project. If the Council is supportive of this project, the developer has requested that the City Council approve both preliminary concept approval of the overall project and approval of the City's intent to pursue Housing TIF, subject to all applicable laws. The developer has also requested a letter of support similar to what the City did for MWF Properties. Their projected TIF request will be $375,000 for 15 years. They must submit their MHFA application for 9% Tax Credits by June 14, 2018. Last year, Business Development Coordinator, Brian Beeman and Blake Huffman met with the owners of BioClean who would like to do an expansion, and to Bauer Welding who is requesting access for their trucks onto Old Hwy 8. Newport is willing to work with these local businesses to accommodate their needs. Newport is also asking if the City owned low land adjacent to Towns Edge Terrace Mobile Home Park can be used as part of the development for water retention. This would allow room for BioClean to do their expansion project. The project will not happen without the Council's support for both TIF and a rezoning. Background: Journey Home MN and Newport Midwest met with Business Coordinator Brian Beeman in 2017 to introduce their project. Since that time, the developer has negotiated a purchase agreement which is in effect until the end of 2018. The developer is cooperating with the surrounding businesses to allow them access and/or expansion space. The adjacent businesses are in support of the project. The owner will be a for-profit entity and therefore the project will generate property taxes. Discussion: Hear a presentation by Newport & Journey Home MN. Discuss the project, financing, zoning, overall concept and layout, and provide feedback to the developer and City staff on the Council's desires for or against the project. City Planner Sevald will review the zoning and Ehler's will review the TIF run. Recommendation: Hear and discuss the developer presentation and overall project both pros' & cons' then provide City staff direction. If the Council decides by consensus that the project should move forward, agrees to a change in the zoning, and is generally supportive of pursuing TIF then staff will place the Resolution, Letter of Support, and preliminary TIF run on the April 23, 2018 Council meeting for consideration. The timing in the approval of these documents is necessary in order to include the documents in the Tax Credit application before the June 14, 2018 deadline. Respectfully submitted, Brian Beeman, Business Development Coordinator Attachment(s): 1)Site Plan 2)Letter of Support 3)Draft Resolution 4)Ehler's TIF Run