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Item No: 01 Meeting Date: March 12, 2018 Type of Business: Work Session Administrator review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Beeman, Business Development Coordinator Item Title/Subject: Discuss Tax Increment Financing (TIF) for MWF Properties Introduction: MWF Properties is proposing to construct an approximately 60 unit workforce housing development. The developer has formally submitted their application for TIF to the City. Background: In order to make the project financially feasible the developer believes that TIF is necessary. Ehler’s, the City’s financial consultant, has conducted a financial analysis of the project and has determined that TIF is qualified for the project and that a financial gap exists. The Ehler’s memo from the January 22, 2018 EDA meeting is attached. (Attachment 3) Kennedy & Graven has crafted a Contract for Private Development as part of the TIF. (Attachment 4) The TIF Plan Summary can be found as (Attachment 1) and the actual TIF Plan is (Attachment 2). Discussion: A public hearing on this matter is scheduled for March 12, 2018 followed by Council consideration for the approval of TIF for the Boulevard Apartments development. Staff believes that the Council should discuss this matter before the March 12, 2018 public hearing. MWF Properties will be providing a presentation explaining why they are asking for TIF, Ehler’s will be providing a presentation to explain the TIF process, TIF Plan, the financial analysis & findings, and explain the requirements to qualifying for TIF, as well as the interfund loan resolution that will be in the March 12 Council agenda. Kennedy & Graven will be available to explain the Contract for Private Development, and answer any questions of the Council. The LHIT grant that the Council discussed at the February 5, 2018 Council work session will be considered for approval after the TIF agenda item at the March 12, 2018 Council meeting. Recommendation: Hear comments from MWF Properties who is requesting the TIF, Ehler’s who has completed the financial analysis and steps required to create the TIF district, and Kennedy & Graven who will explain and answer questions on the Private Development Contract and any other questions the Council may have. Ask questions as needed leading up to the March 12, 2018 EDA meeting 6:00 p.m. and Council public hearing 6:30 p.m. Respectfully submitted, ________________________ Brian Beeman, Business Development Coordinator Attachment(s): 1) TIF Plan Summary 2) TIF Plan 3) EDA Packet Setting a Public Hearing from January 22, 2018 meeting (Ehler’s TIF Analysis Memo) 4) Contract for Private Development