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HomeMy WebLinkAbout04-09-2018CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, April 9, 2018 6:00 p.m. 1. CALL TO ORDER 2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner Hull, Commissioner Meehlhause, Commissioner Bergeron 3. APPROVAL OF AGENDA 4. PUBLIC INPUT: Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 5. CONSENT AGENDA A. Approval of Minutes: February 26, 2018 B. Approval of Minutes: March 12, 2018 6. EDA BUSINESS A. Resolution18-EDA-310, A Resolution Consenting to the Process for the Creation of a Housing Tax Increment Financing District in Support of the Proposed Triton Multiple Family Housing Project, and Approval of a Letter of Support for the project 7. REPORTS 8. NEXT EDA MEETING: April 23, 2018 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 February 26, 2018 6 Mounds View City Hall 7 2401 County Road 10, Mounds View, MN 55112 8 9 10 1. CALL MEETING TO ORDER 11 12 President Mueller called the meeting to order at 6:00 p.m. 13 14 2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner Bergeron 15 Commissioner Hull, Commissioner Meehlhause, and Executive Director Zikmund. 16 17 NOT PRESENT: None. 18 19 3. APPROVAL OF AGENDA 20 21 City Attorney Riggs requested the Council discuss Item C under New Business prior to Item B. 22 23 MOTION/SECOND: Gunn/Meehlhause. To Approve the February 26, 2018, Agenda as 24 amended. 25 26 Ayes – 5 Nays – 0 Motion carried. 27 28 4. PUBLIC INPUT 29 30 Bill Urbanski, 2367 Sherwood Road, spoke against the proposed gun range, gun shop and 31 development that would be located at the corner of Mounds View Boulevard and Edgewood 32 Drive. He explained the City Council were elected officials that should be working for the 33 interests and values of the community. He believed the Council was more interested in working 34 for and serving the interests of the Heartland Gun Club and Pat Egan. He reported Pat Egan was 35 not a Mounds View resident, nor was INH. He encouraged the developers to bring their gun club 36 to another community such as Arden Hills. He stated he has knocked on nearly every door in the 37 Edgewood Middle School area and the ratio was 8:1 against the gun club. He explained most 38 residents did not like the location of the proposed gun club as it was too close to a residential 39 neighborhood and senior housing. He indicated on Tuesday, February 6th a number of residents 40 attended the local caucus at the Chippewa Middle School and noted all Mounds View four 41 precincts passed a Resolution opposing the gun club at Crossroad Pointe by a large majority. He 42 stated many of the people he contacted were aware of the fact a gun club was being proposed at 43 Crossroad Pointe. He indicated he had a large number of signatures on a petition opposing a gun 44 club in Mounds View. He stated he was creating a database of individuals in the community that 45 Mounds View EDA February 26, 2018 Regular Meeting Page 2 oppose the gun club. He noted his slogan was, “Mounds View - Together We Can Do Better”. 1 2 Russ Warren, 8044 Greenwood Drive, asked if there was a time limit on the Public Hearing for 3 the item on the City Council agenda. President Mueller reported each speaker would be given 4 three minutes to speak. 5 6 5. APPROVAL OF MINUTES 7 8 A. January 22, 2018, EDA Minutes. 9 10 MOTION/SECOND: Meehlhause/Hull. To Approve the January 22, 2018, Minutes as 11 presented. 12 13 Ayes – 5 Nays – 0 Motion carried. 14 15 6. CONSENT AGENDA 16 17 None. 18 19 7. EDA BUSINESS 20 21 A. Confirm EDC Chair and Vice Chair Appointments. 22 23 Business Development Coordinator Beeman requested the EDA confirm the EDC Chair and 24 Vice Chair appointments for 2018. He noted the EDC had recommended Jim Freichels serve as 25 the Chair and Dan Larson serve as the Vice Chair. 26 27 MOTION/SECOND: Meehlhause/Bergeron. To Confirm the EDC Chair and Vice Chair 28 Appointments. 29 30 Ayes – 5 Nays – 0 Motion carried. 31 32 C. Joint Resolution Approving Real Estate Option Agreement for Boulevard 33 Apartments. 34 35 Business Development Coordinator Beeman requested the EDA adopt a joint Resolution that 36 would approve a real estate option agreement for Boulevard Apartments. He explained MWF 37 was proposing a 60-unit workforce housing apartment complex on the west end of town. 38 39 City Attorney Riggs discussed the option agreement in detail with the Authority, noting two tax 40 forfeiture properties would be combined with this development. He stated the reason for the 41 option agreement was to require certain actions on the part of the developer and EDA’s behalf. 42 Mounds View EDA February 26, 2018 Regular Meeting Page 3 He reported once the option agreement was signed and in place, the developer would be locked 1 in to purchase the property. Staff provided further comment on the agreement and recommended 2 approval. 3 4 MOTION/SECOND: Gunn/Meehlhause. To Waive the Reading and Adopt Resolution 18-5 EDA-307, Approving Real Estate Option Agreement for Boulevard Apartments. 6 7 Ayes – 5 Nays – 0 Motion carried. 8 9 B. Resolution 18-EDA-306 Conditionally Authorizing Acquisition of Tax-10 Forfeited Land at a Discount for the Development of Multi-Family 11 Affordable Housing. 12 13 Business Development Coordinator Beeman requested the Council adopt a Resolution 14 conditionally authorizing acquisition of tax-forfeited land at a discount for the development of 15 multi-family affordable housing. He reported the County was requiring the City to pass this 16 Resolution due to the fact that two of the properties were tax-forfeited. He discussed the fees the 17 developer would have to pay for the land noting discounts were in place. 18 19 City Attorney Riggs reviewed the redlined changes to the Resolution and noted this item would 20 not require Council approval. He commented on the development schedule for the project and 21 recommended approval. 22 23 Commissioner Meehlhause reported the City would not be paying for the tax forfeited land but 24 rather would be paid for by the developer. He asked if MWF would maintain ownership of the 25 tax-forfeited land if the development did not happen. City Attorney Riggs advised this was 26 covered in the option agreement and reported if the project were to fall through the land would 27 return to the EDA. 28 29 President Mueller questioned if the two tax forfeited properties were currently paying property 30 taxes. Business Development Coordinator Beeman reported both properties had been foreclosed 31 and were not paying taxes. 32 33 President Mueller commented one of the parcels was landlocked and the other was accessible to 34 Mounds View Boulevard. She asked how big the parcel was that had access to Mounds View 35 Boulevard. Business Development Coordinator Beeman stated he was uncertain as to the exact 36 size but noted the four parcels within this development were being combined in order to allow 37 for a proper sized development. 38 39 MOTION/SECOND: Gunn/Meehlhause. To Waive the Reading and Adopt Resolution 18-40 EDA-306, Conditionally Authorizing Acquisition of Tax-Forfeited Land at a Discount for the 41 Development of Multi-Family Affordable Housing. 42 Mounds View EDA February 26, 2018 Regular Meeting Page 4 1 Ayes – 5 Nays – 0 Motion carried. 2 3 8. REPORTS 4 5 None. 6 7 9. NEXT EDA MEETING: Monday, March 12, 2018 at 6:00 p.m. 8 9 10. ADJOURNMENT 10 11 President Mueller adjourned the meeting at 6:24 p.m. 12 13 Respectfully submitted, 14 15 16 Recorded and transcribed by: 17 Heidi Guenther 18 TimeSaver Off Site Secretarial, Inc. 19 PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 March 12, 2018 6 Mounds View City Hall 7 2401 County Road 10, Mounds View, MN 55112 8 9 10 1. CALL MEETING TO ORDER 11 12 President Mueller called the meeting to order at 6:09 p.m. 13 14 2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner Bergeron 15 Commissioner Hull, Commissioner Meehlhause, Finance Director Beer, and Executive 16 Director Zikmund 17 18 NOT PRESENT: None. 19 20 3. APPROVAL OF AGENDA 21 22 MOTION/SECOND: Gunn/Hull. To Approve the March 12, 2018, Agenda as presented. 23 24 Ayes – 5 Nays – 0 Motion carried. 25 26 4. PUBLIC INPUT 27 28 None. 29 30 5. APPROVAL OF MINUTES 31 32 None. 33 34 6. CONSENT AGENDA 35 36 None. 37 38 7. EDA BUSINESS 39 40 A. 18-EDA-308 a Resolution Adopting a Modification to the Redevelopment 41 Project Plan for the Mounds View EDA Project and the Establishment of 42 Tax Increment Financing District No. 1-6 Therein and Adopting a Tax 43 Increment Financing Plan. 44 45 Mounds View EDA March 12, 2018 Regular Meeting Page 2 Business Development Coordinator Beeman requested the Authority adopt a Resolution 1 modifying the Redevelopment Project Plan for the Mounds View EDA project and the 2 establishment of Tax Increment Financing District No. 1-6. He reported this action would create 3 a TIF District for the Boulevard housing project. 4 5 James Lehnhoff, Ehlers & Associates, provided the EDA with a brief presentation on the 6 proposed TIF plan to create TIF District 1-6, which was for a housing district. It was noted the 7 maximum TIF term would be 26 years. He reported the proposed TIF plan was reviewed by staff 8 and the City Attorney. He recommended approval of the proposed Resolution. 9 10 President Mueller clarified the TIF District would be for 15 years and not 26 years. Lehnhoff 11 explained that housing districts can be set up for 26 years. He added that Council action to 12 determine the approved TIF amount and term will not be considered for approximately another 13 month or so. 14 15 MOTION/SECOND: Gunn/Meehlhause. To Waive the Reading and Adopt Resolution 18-16 EDA-308, a Resolution Adopting a Modification to the Redevelopment Project Plan for the 17 Mounds View EDA Project and the Establishment of Tax Increment Financing District No. 1-6 18 Therein and Adopting a Tax Increment Financing Plan. 19 20 Commissioner Meehlhause requested staff correct the Resolution to reflect it as being named 18-21 EDA-308. 22 23 Ayes – 5 Nays – 0 Motion carried. 24 25 B. 18-EDA-309, a Resolution Authorizing Interfund Loan for Advance of 26 Certain Costs in Connection with Tax Increment Financing District No. 1-6 27 (A Housing District). 28 29 Business Development Coordinator Beeman requested the Authority authorize an interfund loan 30 for the advance of certain costs in connection with Tax Increment Financing District No. 1-6. He 31 noted the amount that could be advanced was up to $30,000. 32 33 James Lehnhoff, Ehlers & Associates, explained this Resolution would allow the City to be 34 reimbursed for any administrative costs incurred through increment created by this TIF District. 35 36 MOTION/SECOND: Gunn/Meehlhause. To Waive the Reading and Adopt Resolution 18-37 EDA-309, a Resolution Authorizing Interfund Loan for Advance of Certain Costs in Connection 38 with Tax Increment Financing District No. 1-6 (A Housing District). 39 40 Commissioner Meehlhause stated he spoke to the Finance Director regarding this matter and 41 noted the City did not anticipate the need for an interfund loan, but this Resolution would allow 42 Mounds View EDA March 12, 2018 Regular Meeting Page 3 the City to make a payment if the need were to arise. 1 2 Ayes – 5 Nays – 0 Motion carried. 3 4 8. REPORTS 5 6 Commissioner Meehlhause stated the North Suburban Business Council would be meeting on 7 Wednesday, March 14th at 7:30 a.m. at the Mermaid. 8 9 9. NEXT EDA MEETING: Monday, March 26, 2018 at 6:00 p.m. 10 11 10. ADJOURNMENT 12 13 President Mueller adjourned the meeting at 6:24 p.m. 14 15 Respectfully submitted, 16 17 18 Recorded and transcribed by: 19 Heidi Guenther 20 TimeSaver Off Site Secretarial, Inc. 21 Item No: 06A Meeting Date: April 9, 2018 Type of Business: EDA Business City of Mounds View Staff Report To: Economic Development Authority From: Brian Beeman, Business Development Coordinator Item Title/Subject: Resolution 18-EDA-310 A Resolution Consenting to the Process for the Creation of a Housing Tax Increment Financing District in Support of the Proposed Triton Multiple Family Housing Project, and Approval of a Letter of Support for the Project. Background: Newport Midwest, LLC in partnership with non-profit Journey Home Minnesota, has submitted a proposal (“The Triton”) to construct sixty one units of multiple-family rental housing at or new Old Hwy 8 and Mustang Drive, with 100% of the units being affordable to household with incomes at or below 50% of the area median income. Discussion: The City Council discussed the Triton with the developers and Ehlers at its April 2, 2018 Council Worksession. The council showed support for the project and in creating a TIF district by consensus. The letter of support was also included in that packet. The Council directed staff to place the items on the next available agenda for consideration. Recommendation: Staff recommends the Authority consider approval of Resolution 18-EDA-310 and the letter of support by motion. Respectfully submitted, __________________________ Brian Beeman Attachments: 1) 18-EDA-310 A Resolution Approving 2) Letter of Support 3) Ehler’s TIF Memo RESOLUTION 18-EDA-310 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION CONSENTING TO THE PROCESS FOR THE CREATION OF A HOUSING TAX INCREMENT FINANCING DISTRICT IN SUPPORT OF THE PROPOSED TRITON MULTIPLE FAMILY HOUSING PROJECT WHEREAS, the City of Mounds View Economic Development Authority (the “EDA”) is a municipal corporation and political subdivision duly organized and existing under the Constitution and laws of the State of Minnesota; and, WHEREAS, Pursuant to Minnesota Statutes §469.174 – §469.1799, the City of Mounds View is authorized to use Tax Increment Financing (“TIF”) to carry out the public purposes described and contemplated thereby; and, WHEREAS, Newport Midwest, LLC, in partnership with non-profit Journey Home Minnesota, has submitted a proposal (“The Triton”) to construct sixty one units of multiple-family rental housing (the “Project”) at or near Old Hwy 8 and Mustang Drive, with 100% of the units being affordable to households with incomes at or below 50% of the area median income; and, WHEREAS, Newport Midwest, LLC has submitted plans and applications for approval by the City of Mounds View for an amendment to the Zoning Map and a Conditional Use Permit for a Multiple Family Dwelling for the Project; and, WHEREAS, the EDA supports the Project and will endeavor to work with Newport Midwest, LLC to facilitate (TIF) assistance through the creation of a Housing TIF District with such actions being subject to Newport Midwest, LLC securing an allocation of Housing Tax Credits from the Minnesota Housing Finance Agency for the Project; and, WHEREAS, the EDA cannot create a Housing TIF District in support of the Project until all statutory requirements have been fully satisfied, including the consideration of comments from the public and affected governmental jurisdictions following a public hearing. NOW, THEREFORE, BE IT RESOLVED, by the City of Mounds View Economic Development Authority, that the recitals and exhibits, if any, set forth in this Resolution are incorporated into and made a part of this Resolution Resolution 18-EDA-310 Page 2 NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City of Mounds View Economic Development Authority does hereby support the Project subject to final determination by the City Council in its sole discretion of Project eligibility, statutory requirements, public hearings and required reviews, public input, and without surrendering its legislative discretion. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City of Mounds View Economic Development Authority supports the creation of a Tax Increment Financing district for the Project, including a 15-year TIF Note in an amount up to $375,000 in principal, to address a funding gap for the Project. NOW, THEREFORE, BE IT FINALLY RESOLVED, that the City of Mounds View Economic Development Authority hereby authorizes City staff and City consultants to work on Tax Increment Financing assistance for the Project upon receipt of a complete TIF application from Newport Midwest, LLC and non-profit partner Journey Home for the Project. Adopted this 9th day of April, 2018 ______________________________ Carol A. Mueller, EDA President ATTEST: ______________________________ Nyle Zikmund, EDA Executive Director (seal) 2401 Mounds View Boulevard ● Mounds View, MN 55112 www.moundsviewmn.org www.ci.mounds-view.mn.us Equal Opportunity Employer April 9, 2018 Minnesota Housing Finance Agency 400 Sibley Street, Suite 300 St. Paul, MN 55101-1998 RE: Letter of Support for Newport Midwest, LLC & Journey Home Minnesota The City of Mounds View is supportive of Newport Midwest, LLC & Journey Home Minnesota’s application for Minnesota Housing Tax Credits to construct a 61-unit apartment building (the “Project”) for affordable housing. The City intends to undertake the process of establishing a Tax Increment Financing district supporting the Project, including a 15-year TIF Note in an amount up to $375,000 in principal to address an estimated funding gap for the Project. The City will process the TIF application pursuant to all applicable laws and rules. Mounds View (pop: 12,952) consists of 4.1 square miles, located in the northwest corner of Ramsey County, at the convergence of US Highway 10 and Interstate 35W. The community is bisected by Mounds View Blvd (formerly US Hwy 10), and anchored by the former Twin Cities Army Ammunition Plant (TCAAP), in Arden Hills. The city is characterized by affordable homes ($197,300 median value) on tree-lined streets, primarily built in the 1940’s thru 1960’s. Sixty- seven percent of homes are owner occupied.1 The Project is located near the intersection of Old Highway 8 (County Road 77) and Mustang Drive. The site is currently occupied by a motel, and is adjacent to a 239-unit manufactured home park, and an industrial corridor (light manufacturing and truck terminals). The Old Highway 8 corridor through Mounds View and New Brighton is a jobs corridor. Major employers within the area (NW Ramsey County) include Medtronic, Boston Scientific, Mounds View Public Schools, Wells Fargo, and Deluxe Corporation. The Metropolitan Council’s 2021-2030 Allocation of Affordable Housing Need for Mounds View includes; 9 units <80% AMI, 5 units <50% AMI, and 13 units <30% AMI (27 units total). The Project will accomplish much of the city’s <50% and <30% housing allocations. The Project is ½ mile from two park & ride lots, serving MTC Express Route 250 (Lino Lakes – Minneapolis) and Express Route 860 (Coon Rapids – St. Paul). The Project is served by the Mounds View School District (ISD 621), and specifically Sunnyside Elementary School (1 1/3 mile), Edgewood Middle School (1 mile), and Irondale High School (1 1/3 mile). Sunnyside student reading and math RIT scores measure above the National Norm. 1 American Community Survey, 2012-2016 Page 2 of 2 Irondale has a 93.3% graduation rate (MN Avg = 82.7%), and includes two teachers who are semifinalists for 2018 Minnesota Teacher of the Year. The Project has immediate access to a city trail along Old Highway 8, and is 1/3 mile from the Rice Creek North Regional Trail, and one mile from Long Lake Regional Park (Ramsey County Parks system). Ramsey County received a $1.1 million grant in 2011 from the Metropolitan Council to expand this trail within proximity of the Project location. The Project is across I-35W from Rice Creek Commons (formerly TCAAP), guided for redevelopment between the years 2020-2035, to include 1,460 households, and 159 acres guided for office, commercial, and retail uses. In Summary, Mounds View is a small bedroom community with great access. The Project presents an opportunity to redevelop a blighted site for affordable housing. Its residents will have access to manufacturing jobs within the immediate neighborhood, and within walkable distance of schools, regional parks, and express bus service to Minneapolis/St. Paul. The Mounds View City Council is supportive of the Project, and sees this as an opportunity for families to transition from this Project, to move-up single-family homes elsewhere within the City. Sincerely, Carol A. Mueller Mayor, City of Mounds View Memo To: Brian Beeman, Business Development Coordinator City of Mounds View From: Jason Aarsvold and James Lehnhoff, Ehlers Date: March 29, 2018 Subject: The Triton Apartments TIF Request Newport Midwest LLC, (the “Developer”) submitted a request to the City of Mounds View (the “City”) for $350,000 in Tax Increment Financing (TIF) assistance to construct 61 new affordable apartment units at 4889 Old Highway 8 (Skyline Hotel Site). The $15.7 million project includes a mix of 1, 2, and 3-bedroom units. The Developer is currently requesting a resolution of support from the City Council to supplement its application to Minnesota Housing for an allocation of Low Income Housing Tax Credits. The tax credits will provide most of the funding for the project. The Developer’s numbers are still preliminary and shifting as of the date of this memorandum. Ehlers did, however, conduct a thorough review of the Developer’s current pro forma based on industry standards for total development costs, financing structure, revenue and operating expenses. Based on the results of the pro forma analysis, the project does demonstrate a funding gap of at least $350,000. This preliminary review establishing a gap in the project is sufficient to proceed with a resolution of support for TIF in the requested amount. We recommend, however, that if the project receives its tax credit funding, that there is an analysis of the final numbers. This would happen before creating a TIF district and entering into an agreement with the Developer to provide TIF assistance. Tax Increment The requested $350,000 of TIF assistance represents approximately 2% of total project costs. Depending on the project type, TIF assistance for LIHTC projects is commonly in the range of 4-10% of total project costs. This project is also seeking other outs ide funding and is doing some additional fundraising, which is limiting the need for TIF assistance. The City would provide TIF assistance on a “pay-as-you-go” basis with interest at the lesser of 5.25% or the developer’s actual financing rate. Based on our tax increment projections for this project, we estimate this assistance could be repaid within 10 to 11 years. Please reach out with any questions at 651-697-8512.