07-24-1997 - Laserfiche WebLink

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Ramsey County Home Funds: • $200,000 at 4.5% interest for 30 years. Balloon when tax credits expire. The County Board approved the setting aside of these funds for a project in Mounds View in May. Judy Karon and Mary Lou Eagan from the County are working with MSP Real Estate to work out the legal documentation and debt repayment assurances. Judy Karon is uncertain at this point of the status based upon the MSP's reluctance to be able to comply with the loan requirements. MHFA Deferred Loan: $290,000 at 0% interest for 30 years. Application is due in August and will be considered for approval in October. Staff indicates this is a type of proposal that is favorable to fund and they would support. We will request a copy of the application to assure that the budget is consistent. Holman Grant: $978,000 structured as a grant or non-recourse loan at 0% interest. Preliminary approvals given. Waiting for Metropolitan Council to vote regarding holding the Annual Contribution Contract which is required to be administered by a public entity. Ramsey County will not participate in this and the City is not qualified. Therefore, it is critical that Met Council support this. The Met Council Community Development Council will vote on this issue July 25th and the full board will vote August 6th. This is a key component of the project moving forward. The requirement is that 10 units (5 rehab, 5 new) must be set aside for people who are on the Minneapolis Public Housing waiting list. They will • allow 3 of the 10 units to come from existing Mounds View residents receiving subsidies. The screening process to be eligible under the Holman Decree is very strict, similar to Habitat for Humanity. These are people who struggle financially but are interested in providing a better life for their family. The EDC may want to consider recommending that a letter be sent to Met Council urging the Board to hold the Annual Contribution Contract. Sale of EDA Land: The Partnership is proposing to purchase the property from the EDA for $35,000 which is approximately $1.35 per sq. ft. This is the price that they are purchasing the vacant land between the Red Oak Apartments and EDA owned land. The Partnership has also had an appraisal done on the land and will be able to share this with the EDC at the meeting. Per State Law, the EDA must hold a public hearing on the sale of land. The public hearing is scheduled for July 28th. A notice was published and is attached for your review. The sale would be contingent upon all aspects of the financing and development review being approved. If the EDA is not prepared to act on the sale at this meeting, the public hearing can be continued until a later meeting. If the sale occurs, these funds are no longer subject to tax increment requirements. Tax Increment Financing Request: The Partnership is requesting a $230,000 deferred 1% interest loan for 30 years from existing Tax Increment Funds. Dave Maroney, TIF Consultant with Community Partners, 0 has attached a letter summarizing his recommendations and considerations for this request. Although the amount of funds requested are relatively small compared to the