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City Council Regular Meeting Minutes May 22, 2018 Page 5 endorse Aeon's application to the Minnesota Housing Finance Agency (MHFA) for low- income housing tax credits (LIHTC). This application includes a total of $1,000,000 in tax increment financing (TIF) in order to help facilitate the financing of the affordable housing project. The Resolution provides that the City will provide TIF subject to the requirements of State Law and the negotiation of an agreement acceptable to the City. There has been no land use application submitted. Aeon anticipates submission in the late fall of 2018 depending on funding commitments. 9 Mr. Blake Hopkins and Ms. Aubrie Gould, Lead Project Manager representing Aeon, addressed 10 the Council. Ms. Gould provided an overview of the project, noting they have 56 properties with 11 3,900 residents in those properties. They are looking to construct a 4 -story building with 16 - 1 12 bedroom units, 36 - 2 bedroom units, and 18 — 3 bedroom units in the building. 13 14 Councilmember Stille asked if the numbers were firm and Ms. Gould stated they should be 15 considered close and Bremer Bank wishes to remain on the site. 16 17 Mayor Faust summarized that Aeon is looking for a commitment from the City for affordable 18 housing, support for the project, and TIF. City Manager Casey noted Ehlers and Associates 19 determined that $1,000,000 of TIF that could be generated on the site over a 26 -year period. 20 21 Councilmember Randle noted he believes the system is broken and beyond repair. He asked 22 what mechanism is in place to ensure the people that need the housing actually receive the 23 housing. Ms. Gould stated they have a compliance process in place. 24 25 Mayor Faust stated he is concerned about sustainability. 26 27 Councilmember Gray stated he respects Councilmember Randle's comments. He does feel this is 28 a good solution that came out of this project. He is supportive of TIF in this case and believes 29 this is a good solution. 30 31 Mayor Faust stated on the site were 97 units of which 37 could not be moved. This would be 32 adding double of what was lost to the region. 33 34 Councilmember Stille noted there will be restrictions that make the 70 households worthy of the 35 affordable housing. 36 37 Motion by Councilmember Gray, seconded by Councilmember Jenson, approve Resolution 18- 38 044; a Resolution Supporting Affordably -Priced Housing at 2401 Lowry Avenue. 39 40 Motion carried 5 -0 41 42 D. Request for the City Council to authorize the City Manager to execute the 43 Acknowledgement of Receptivity of a Metropolitan Council Livable Communities Act 44 (LCA) Funding Award. 45