03-26-1998 - Laserfiche WebLink

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5. EDC BUSINESS A. Consideration of Proposal for Tax Increment Financing for Silverview Estates This project involves the construction of a Holiday station store, two office buildings and a senior housing project at the intersaction of Silver Lake Road and Highway 10. Jopke reviewed the history of the project and the developers request for pay-as-you-go tax increment assistance. Jopke recommended that the EDC consider TIF assistance equal to approximately $1,000,000 on a present value basis instead of the $1,700,000 requested by the developer. Jopke introduced Jim Casserly, the City's financial consultant. Mr Casserly summarized his review of the request and the basis for the $1,000,000 recommendation. Marcel Ebensteiner, representing Silverview Estates, Inc. requested that the assistance to the office portion be increased from $167,000 to $240,000 to cover potential soil correction costs on the site of the one story office building. Ebensteiner also stated that they are also exploring the a number of options for the senior housing including the possibility of HUD financing and having some or all assisted living units. Chairperson Carlson informed the commission that she had contacted the developer of the Oakcrest Senior Apartment in Spring Lake Park and found out that there are 11 units vacant in the project and that there was a total of$750,000 of TIF bond funds provided to the project ($500,000 directly to the project and $250,000 for public improvements including lighting). Commissioner Larson pointed out that assisted living did not work at the Brightondale project in New Brighton. Larson indicated that that project was changed to full care. Larson also stated that affordable rates should not be the overriding issue because40 Mounds View already has a sufficient amiunt of affordable housing units and that what seniors are looking for is avoiding the ongoing maintenance of single family homes. Additonal items discussed included the impact of the single story office building on the adjacent wetlands, the timing of the construction of the office buidings, whether the office portion of the project should be handled separately from the housing portion, and whether the TIF assistance for the offices should be contingent on the completion of the two story office. The commission discussed amount of assistance, length of assistance, and eligible uses of funds for each portion of the project. Motion/Second: Goff/Larson to approve Resolution No. 98-EDC21 Motion Carried 4 Ayes 0 Nays B. Consideration of Housing Improvement Loan Program Chairperson Carlson generally described the discussion that city staff had with Western Bank concerning possible home improvement loan programs. Housing Inspector Dorgan summarized the types of existing and possible programs that staff has investigated. • N:\DATA\GROUPS\ECONDE V\EDA-EDC\EDCMIN2.98