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MEMORANDUM TO: Charlie Yunker, City Manager FROM: Stacie Kvilvang, Ehlers DATE: June 9, 2026 SUBJECT: Public Finance Policy At the April 28,2026 City Council work session,Council expressed interest in the development of a public financing policy that would incorporate various objectives the City wanted to accomplish with future redevelopment projects,primarily related to inclusion of affordable units in any new multi-family developments. We have worked with staff to refine a standardized Public Financing Policy (the “Policy”)format that many cities use and tailored it to incorporate the City objectives mentioned above as follows: 1.Section 2 -City objectives for providing public assistance:Added A.2 which states that the City wants to assure that any new multi-family development contains units affordable at or below 60%of the area median income (AMI).This section is not meant to be prescriptive (i.e.dictate the number of units),but to set the tone as to your desire for inclusion of affordable units.We purposefully say at or below 60%AMI as project can contain units at 50%or 30%AMI,which would be agreed to with the city based upon the amount of assistance requested. 2.Section 3 –Public financing principles.Added 6.which states that any multi-family project requesting assistance will be required to file a Declaration of Restrictive Covenants outlining the affordability parameters,which will be filed with the property and in effect for 26 years,even if the term of assistance is shorter (term typically begins when the project receives a Certificate of Occupancy from the city). 3.Section 4.1 -Minimum qualifications /requirements:Added A.to state that any project that contains multi-family housing must meet the objective noted above of including units affordable at or below 60% AMI. 4.Section 4.2 -Desired qualifications:Added C.2.(i)which states that priority consideration will be given to projects that provide at least 20%of units affordable at 50%AMI,which correlates to the statutory requirements of a Housing TIF district.The Policy also states that if a different type of TIF district is requested (i.e.redevelopment or renewal and renovation),that in the city’s sole discretion it may consider a different level and percentage of affordability based upon the size and location of the project.This provides the city with flexibility to ladder affordability because it is not confined by statute (i.e.you could still have 20%of the units affordable but it could be at different levels -10%at 60%AMI,5%at 50%,5%30%AMI,or any combination thereof)