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EDC Minutes May 19, 2017 Page 2 of 5 some type but will make a determination when those type of projects are brought forward. Beeman informed the Commission that he has met with four developers recently all interested in the Crossroad Pointe site. The first developer who presented at the May 1, 2017 City Council work session presented an affordable independent living senior housing project. Two more developers will be presenting at the Council’s June 5 work session. Both of the developers will be presenting an all market rate mixed use development while another developer may be presenting an all market rate senior living project. Staff has been marketing pretty strong directly to developers which has helped in attracting qualified developers. Commissioner Teresa Muckala asked what the difference is between market and affordable rates. Beeman explained that market rate is what people are willing to pay in a certain geographic area where no subsidy is required or being used and is mainly based off of demand. These rates are sometimes determined from housing market studies. While affordable is a subsidized project based off of the AMI Average Median Income for a specific geographic location as determined by HUD and other agencies. Muckala asked if the June 5th City Council meeting is open to the public. Beeman said most of the City Council meetings are public and anyone is welcome to attend. Commissioner Gary Stevenson asked what the difference is between Affordable and Workforce housing. Beeman said the words affordable and workforce housing are used interchangeably and essentially mean the same thing. When section 8 housing was popular the projects were called affordable. Calling the newer affordable housing projects workforce housing is more politically correct and with the project proposed in Mounds View Section 42 Tax Credits are being sought and not section 8 which would require a voucher. The section 42 housing has no voucher program and tenants pay just as if it was a market rate development only at a lower rate that is subsidized through the tax credits. The typical salary range for the section 42 developments may be similar to a nurse or dental assistant. The rents are lower but to some, the rents are still high. This is another reason why this type of housing is called workforce housing. Ideally, if the development is done right anyone driving by shouldn’t be able to tell the difference between a market rate or workforce housing project. Business Retention & Expansion Visit (BR&E) Updates Next Beeman updated the Commission on the business retention and expansion efforts. Beeman informed the Commission that he has cooperated with Greater MSP who is a nine county regional economic development organization to put together a comprehensive BR&E report for the City of Mounds View. Beeman input data from any formal survey from his many business visits. The data was converted to reveal local trends. Beeman presented the detailed report to the Commission. Some of the main points are the skilled workforce gap created by high schools eliminating shop classes, a higher number of business who are leasing space versus owning their own building, and a general sense that the City has good infrastructure and is supportive of businesses. Commissioner Muckala asked if companies had multiple inputs or only one. Beeman said each company received one input. Commissioner Dennis Farmer stated that there