07-24-1997 - Laserfiche WebLink

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The Current Proposal: • The current proposal from The Partnership addresses the existing condition with the Red Oak Apartment and creates more of a community by incorporating the new townhomes with a large play area, community room, on-site management office and increased landscaping. The rendering from MSP shows a completely new look for the Red Oak Apartments that will match the architectural style of the new units. There is one access point off Highway 10 for the entire project and an emergency fire exit onto Eastwood. The existing units are all 1 and 2 bedrooms and the new units will be 3 and 4 bedroom. All of the units are for people who earn less than 40% of the median income which is categorized as affordable housing. It is estimated that the current tenants in the Red Oak Apartments would qualify under these income limits, therefore the existing apartments can currently be considered affordable. The rent is expected to increase as a result SLC but the rents proposed will still meet the guidelines for affordable housing. Because the rents are increasing, there is concern that some of the existing tenants will be displaced. Therefore, it is very important that an adequate amount of money be dedicated to relocation in the budget. I will review this issue further under the financing summary. An objectives of the development is to provide an area for children to play. Currently, children play in front of the apartments close to Highway 10. The current proposal reduces the number of units allowed per acre to provide a large play area along Eastwood. In addition there was concern that adding more multifamily units in Mounds View would be a strain on the School District. Jeff Huggett met with the Superintendent410 of Mounds View Schools about SLC and their comments are outlined in the attached letter. SLC have gone through development review and approved by the Planning Commission at the July 16, 1997 meeting. I have attached copies of the staff report and minutes for your information. Council will vote on the development review at the July 28th meeting. The Financing: I have attached a revised budget for SLC with a detailed breakdown of the sources and uses which were requested to evaluate the financial package. SLC is proposing a complicated layering of financing from Minnesota Housing Finance Agency, Ramsey County, Minneapolis Public Housing Agency and the City of Mounds View. Because there are several elements of public financing in this proposal, the EDA's financial interest should be contingent upon The Partnership's approvals from these other agencies. The Developers are working closely with each public entity but questions still remain regarding the level of security each agency will require and final approvals are still uncertain. The following is a brief summary of each source of public funds. Minnesota Housing Finance Agency (MHFA): $250,000 in tax credits approved by MHFA in March for 17 years. •