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Home My WebLink About06-14-2021 EDACITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, June 14, 2021 6:30 p.m. Virtual Meeting Please click the link below to join the webinar: https://us02web.zoom.us/j/82896257611?pwd=WTFuMkZ3Q0twZVl6YVVpTDlRclRwUT09 Passcode: 238914 Or iPhone one-tap : US: +16465588656,,82896257611# or +13017158592,,82896257611# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 646 558 8656 or +1 301 715 8592 or +1 312 626 6799 or +1 669 900 9128 or +1 253 215 8782 or +1 346 248 7799 or 833 548 0282 (Toll Free) or 877 853 5247 (Toll Free) or 888 788 0099 (Toll Free) or 833 548 0276 (Toll Free) Webinar ID: 828 9625 7611 1. CALL TO ORDER 2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Hull, Commissioner Meehlhause, Commissioner Bergeron 3. APPROVAL OF AGENDA 4. CONSENT AGENDA A. Approval of Minutes: May 10, 2021 5. PUBLIC COMMENT 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. 6. EDA BUSINESS A. 21-EDA-344 A Resolution Supporting Use of Financial Assistance for a Rental Housing Development Project 7. REPORTS EDA Lot Purchase Agreement Update 8. NEXT EDA MEETING: June 28, 2021 at 6:30 p.m. 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 May 10, 2021 6 Mounds View City Hall 7 2401 Mounds View Boulevard, Mounds View, MN 55112 8 9 10 1. CALL MEETING TO ORDER 11 12 President Mueller called the meeting to order at 6:30 p.m. Due to the COVID-19 pandemic this 13 meeting was held virtually. 14 15 2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Bergeron 16 Commissioner Hull, Commissioner Meehlhause, and Executive Director Zikmund. 17 18 NOT PRESENT: None. 19 20 3. APPROVAL OF AGENDA 21 22 MOTION/SECOND: Meehlhause/Bergeron. To Approve the May 10, 2021, Agenda as 23 presented. 24 25 A roll call vote was taken. 26 27 Ayes – 5 Nays – 0 Motion carried. 28 29 4. CONSENT AGENDA 30 31 A. April 26, 2021, EDA Minutes. 32 33 MOTION/SECOND: Hull/Meehlhause. To Approve the Consent Agenda as presented. 34 35 A roll call vote was taken. 36 37 Ayes – 5 Nays – 0 Motion carried. 38 39 5. PUBLIC COMMENT 40 41 None. 42 43 6. EDA BUSINESS 44 45 Mounds View EDA May 10, 2021 Regular Meeting Page 2 A. Resolution 21-EDA-343, A Resolution Approving NorthstarMLS Listing 1 Change Form and Contract Agreement for Property Located in Mounds 2 View, Minnesota. 3 4 Assistant City Administrator Beeman requested the EDA approve the NorthstarMLS Listing 5 Change Form and Contract Agreement for property located in Mounds View. He explained 6 ReMax has been working with the City to sell the property next to Simon’s. He reported the 7 broker agreement the City has with ReMax expires on June 9, 2021 and staff is requesting the 8 agreement be extended for one more year. 9 10 Doug Harris, ReMax representative, explained he was a commercial property broker that has 11 been working with the City of Mounds View to sell the Simon’s and City owned properties. 12 13 Commissioner Meehlhause asked how many weeks or months it would take before something 14 official would be coming before the EDA. Mr. Harris reported the interested party was required 15 to put together a purchase agreement 30 days from signing a letter of intent. 16 17 MOTION/SECOND: Hull/Bergeron. To Waive the Reading and Adopt Resolution 21-EDA-18 343, Approving NorthstarMLS Listing Change Form and Contract Agreement for Property 19 Located in Mounds View, Minnesota. 20 21 A roll call vote was taken. 22 23 Ayes – 5 Nays – 0 Motion carried. 24 25 7. REPORTS 26 27 None. 28 29 8. NEXT EDA MEETING: Monday, May 24, 2021 at 6:30 p.m. 30 31 9. ADJOURNMENT 32 33 President Mueller adjourned the meeting at 6:41 p.m. 34 35 Respectfully submitted, 36 37 38 Recorded and transcribed by: 39 Heidi Guenther 40 Minute Maker Secretarial 41 Item No: 6A Meeting Date: June 14, 2021 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: 21-EDA-344, A Resolution Supporting Use of Financial Assistance for a Rental Housing Development Project Background The EDA owns approximately 3.5 acres on four parcels at 4849 & 3943 Old Hwy 8 with partial undevelopable lands including a small wetland area. MWF Properties is proposing to construct a development on the EDA property otherwise known as the Skyline Redevelopment Area. At is March 22, 2021 meeting, the EDA authorized staff to continue to cooperate with MWF Properties to complete a Preliminary Development Agreement. At its April 12, 2021 meeting the EDA approved a Preliminary Development Agreement with MWF Properties to construct an affordable senior living project and a workforce housing project. MWF Properties has notified staff that they will need a resolution of support for a Housing TIF similar to what the EDA approved for the Boulevard project. As their project is contingent upon proper financing and they must prove to their funders that the EDA is supportive of a Housing TIF for the Skyline Redevelopment project. Keeping in mind that a full TIF run will need to be completed at a later date and that early numbers for the project will likely change until the project is finalized, Ehler’s has completed a preliminary TIF run which indicates a 20 year Housing TIF instead of a 26 year TIF as originally requested. Discussion The EDA to review Ehler’s memorandum summarizing the TIF recommendation and Resolution 21-EDA- 344, A resolution supporting use of financial assistance for a rental housing development project. A representative from Ehler’s and MWF Properties will be available to answer any questions. If all goes as planned, MWF plans to break ground on the new project December 2021. Recommendation Staff recommends that the EDA review and consider resolution 21-EDA-344 by motion. Respectfully submitted, ________________________ Brian Beeman Assistant City Administrator Attachment(s): 1) Ehler’s memorandum summarizing the TIF recommendation 2) Resolution 21-EDA-344 The Mounds View Vision A Thriving Desirable Community SOURCES Amount Pct.Per Unit First Mortgage 11,251,000 42.2%100,455 TIF Mortgage 1,900,000 7.1%16,964 Tax Credits 11,435,408 42.9%102,102 Deferred Developer Fee (92% of Total Fee)2,068,146 7.8%18,466 TOTAL SOURCES 26,654,554 100%237,987 USES Amount Pct.Per Unit Acquisition Costs 1,550,000 5.8%13,839 Construction Costs 20,493,085 76.9%182,974 Professional Services 719,500 2.7%6,424 Financing Costs 1,306,451 4.9%11,665 Developer Fee 2,250,000 8.4%20,089 Cash Accounts/Escrows/Reserves 335,518 1.3%2,996 TOTAL USES 26,654,554 100%237,987 1 2 3 4 5 6 7 8 30%22,050 25,200 28,350 31,450 34,000 36,500 39,000 41,550 50%36,750 42,000 47,250 52,450 56,650 60,850 65,050 69,250 Studio 1 2 3 4 5 6 30%551 590 708 818 912 1,007 1,101 50%918 984 1,181 1,363 1,521 1,678 1,835 RESOLUTION NO. 21-EDA-344 MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF RAMSEY STATE OF MINNESOTA SUPPORTING USE OF FINANCIAL ASSISTANCE FOR A RENTAL HOUSING DEVELOPMENT PROJECT WHEREAS, the Mounds View Economic Development Authority (the “EDA) has received a request to provide financial assistance to Skyline Apartments, Limited Partnership, a Minnesota limited partnership (or another entity to be formed by or affiliated with MWF Properties, LLC, the “Developer”) for an approximately 112-unit affordable, senior rental housing apartment building to be located at 4889 Old Highway 8, Mounds View, Minnesota; and WHEREAS, in connection with its application to Minnesota Housing for tax credits, the Developer has requested that the EDA indicate its support of the use of financial assistance for the project. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Mounds View Economic Development Authority (the “Board”) as follows: The EDA supports the use of financial assistance in an amount not to exceed $1,900,000; provided, however, that authorization and form of financing for the project is solely within the discretion of the EDA after satisfaction of all conditions required pursuant to the Economic Development Authorities Act, Minnesota Statutes, Sections 469.090 to 469.1080 (the “EDA Act”), and is authorized pursuant to Minnesota Statutes §469.174 to §469.1794 (the “TIF Act”), including without limitation, (i) determining that financial assistance is necessary for the project; (ii) verification of development financing need that substantiates that “but for” the use of tax increment financing the project would be unable to proceed; and (iii) a public hearing. Adopted this 14th Day of June 2021. ______________________________ Carol A. Mueller, EDA President (ATTEST) ______________________________ Nyle Zikmund, Executive Director (SEAL)