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Item No: 7.C. Meeting Date: January 22, 2018 Type of Business: EDA Administrator Review: _______ City of Mounds View Staff Report To: Economic Development Authority From: Brian Beeman, Business Development Coordinator Item Title/Subject: Resolution 18-EDA-305 Calling for a Public Hearing by the City Council on the Proposed Adoption of a Modification to the Development Program for the Mounds View Economic Development Project and the Proposed Establishment of Tax Increment Financing District NO. 1-6 and the Adoption of a Tax Increment Financing Plan Introduction: MWF Properties is proposing to build a 60 unit workforce housing development and has formally requested that the City participate in Tax Increment Financing for the project. The EDA passed a resolution of support to supplement MWF’s application to the Minnesota Housing Finance Agency in May 2017 for up to $546,000 of TIF assistance, subject to all standard statutory and local review requirements, including a detailed analysis of the project’s costs, funding sources, income, and expenses—commonly referred to as a pro forma. The purpose of a pro forma analysis is to determine if a project demonstrates a funding gap. Based on Ehler’s analysis the project does demonstrate a funding gap of at least $546,000. The requested TIF assistance helps address a funding gap to make the project financially feasible. If approved, the project is projected to generate the requested $546,000 of TIF assistance over an estimated 15-year term. The attached resolution calls for a Public Hearing on March 12, 2018 on the proposed adoption of a Modification to the Development Program for the EDA project, the proposed establishment of Tax Increment Financing District No. 1-6, a housing tax increment financing district, and the adoption of a Tax Increment Financing Plan in accordance with Minnesota Statutes, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1794. Discussion: The City’s financial consultant Ehlers & Associates, Inc. is preparing the required documents in order to be in compliance with Minnesota State Statues. Part of the requirement in the TIF process is to set a Public Hearing date to provide anyone from the public an opportunity to hear and speak to the creation of the Housing TIF District. Ehlers has conducted an analysis for the project and will be in attendance to answer any questions of the EDA before the Public Hearing is formally set for March 12, 2018. Recommendation: Attached for your consideration is Resolution NO. 18-EDA-305, a resolution that sets the required Public Hearing for March 12, 2018. Respectfully submitted, ________________________ Brian Beeman Business Development Coordinator