11-28-2022 EDA - Laserfiche WebLink

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Item No: 6B Meeting Date: November 28, 2022 Type of Business: EDA Administrator review: _______ City of Mounds View Staff Report To: EDA President and Commissioners From: Brian Beeman, Assistant City Administrator Item Title/Subject: Resolution 22-EDA-362 A Resolution Approving a Preliminary Development Agreement with Reuter Walton Development, llc by the Mounds View Economic Development Authority Background The City Council, at its August 1, 2022 worksession, heard a developer proposal and presentation from Reuter/Walton on an approximately 130 unit workforce housing development located at 2310 Mounds View Boulevard as a Phase I project and another 130 unit market rate development for a Phase II project. Reuter/Walton displayed a concept map and the City Council discussed the project and asked questions as appropriate. Several developers were unsuccessful in negotiating a purchase agreement with the current land owner. However, Reuter/Walton was able to successfully negotiate a purchase agreement on the land. The City Council through general consensus expressed support to the developers for the project. Therefore, the developers prepared a more formal proposal for the August 22, 2022 EDA regular meeting. The EDA, at its August 22, 2022 regular meeting, heard and discussed a developer proposal from Reuter Walton who at the time was seeking to construct approximately 130 units, (now 140 units) of workforce housing on the large lot southeast of the Bel Rea Senior Living facility. Reuter/Walton has applied for Low Income Housing Tax Credits (LIHTC) through the State of Minnesota, a grant from Ramsey County, and a Conduit Bond through the City of Mounds View, (typically generating approximately 1% issuance fee or about $20,000 for this project) as well as a Housing TIF. The EDA asked about management, financing, and a variety of other questions about the project. The EDA acknowledged how difficult it has been for other developers negotiating with the current land owner for the past several years and passed a motion showing support for the project. Motion passed (3 - 2). The Planning Commission, at its November 2, 2022 regular meeting passed a unanimous resolution (6 - 0) recommending approval of amending the zoning map for 2310 Mounds View Boulevard; Preliminary Plat of Woodale Apartments; Planned Unit Development; and Development Review, directing staff and the applicant to provide further information regarding landscaping, proof of parking, snow removal, traffic and exterior lighting. Kennedy & Graven, the City’s attorney, Ehler’s, the City’s financial consultant, City staff, and Reuter/Walton, the developer, has come to a consensus and has completed the Preliminary Development Agreement, and Financial Memorandum, as well as a resolution, for the EDA’s consideration. (Attached)