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Memo To: Mark Casey – City Manager From: Stacie Kvilvang - Ehlers Date: November 13, 2019 Subject: Trident Redevelopment – Terms of Assistance Trident submitted a TIF application for redevelopment of the Bremer Bank site located at 2401 Lowry Avenue NE. They are developing the site into 75 assisted living and memory care units and total development costs are expected to be approximately $18.850 million. They are proposing to have 20% of the units affordable to persons at or below 50% of the area median income as noted in the table below: Unit Summary Affordable Market Total Percent Studio - Memory Care 5 16 21 28% 1BR - Assisted Living 44 44 59% 1BR - Assisted Living 10 10 13% Total 15 60 75 100% Percent 20%80% In order to provide units at a more affordable level, they have requested 15 to 17 years in tax increment financing (TIF) in an amount of approximately $1.6 million. The City requested Ehlers to review their application to determine how much TIF, if any is needed, the term and options to retain affordability of these units longer. TIF District Requirements The City would create a Housing TIF District, which has a maximum term of 26 years. This type of District requires the project to provide a minimum level of affordability at one of the following two (2) levels: • 20% of the units need to affordable to persons with incomes at or below 50% of the Area Median Income (AMI); or • 40% of the units need to be affordable to persons with incomes at or below 60% of AMI As noted in the above table, Trident proposes to provide 15 units (20%) affordable to persons at or below 50% of AMI, which translates to an annual income of $35,000 for an individual or $40,000 for a couple.