05-03-2004 HR MIN - Laserfiche WebLink

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Housing&Redevelopment Authority Page 2 May 3,2004 • MetroPlains is willing to commit that Bluff Block construction will commence prior • to or simultaneously with construction of the Jackson Block. • MetroPlains and the City agree to consider structuring the Tax Increment Financing (TIF)District(s)within limitations of the TIF law to achieve maximum flexibility. • The Development Agreement will contain a"look back"method for both the Bluff and Jackson projects. To the extent that final costs are less than those shown in the preliminary sources and uses statement increasing MetroPlains'return,the assistance for that portion of the project will be reduced. • The City will recommend to the Park and Recreation board that the park dedication fees are used for downtown river park improvements. The City is willing to request a reduction or waiver of the SAC and WAC fees,if necessary,to make the project feasible. • If necessary,to make the project feasible,the City is willing to reduce the cost of the Jackson Block in its entirety. The City can recapture the value of the Jackson Block and SAC/WAC from tax increments derived from inflation. • The City will consider,if necessary,issuing revenue or general obligation tax increment bonds to refinance the Bluff Block tax increment revenue notes under certain conditions. Commissioner Motin asked Mr.Inman if there was a timeline for when the final development agreement could be reached. Mr.Inman stated that a final development could not be approved until a TIF District was established but that the issue of MetroPlains' commitment to begin work on the Bluff Block will speed up the final development agreement process. Commissioner Motin also asked if there was a timeline for when the TII''District would be established. Mr.Inman explained that staff and Ehlers anticipate that a public hearing regarding the establishment of a TIF District downtown won't be held until July because then the increment would begin in 2005 rather than 2004. Commissioner Toth asked Mr.Inman if the Bluff Block could be financially feasible as a stand-alone project. Mr.Inman stated that Ehlers'initial financial review of the project indicates that the Bluff Block could stand alone,however those numbers are based on an estimated cost of the Bluff Block project,not the actual cost. Mr.Inman added that the presales of the Bluff Block housing units would provide an additional indicator that the Bluff Block could financially stand alone. Commissioner Toth stated that he believes Jackson Block is development and not redevelopment and asked if that could create a problem. Mr.Inman stated that both the Bluff and Jackson Blocks could be included in a TIF Redevelopment District since a certain amount of vacant land is allowed in a Redevelopment District as long as there is a certain amount of land in the district to be redeveloped. Mr.Toth asked if the Jackson Block rental housing units would be low-income housing. Ms. Boulton explained that certain percentages of the units must be considered low to moderate income in order for the project to qualify for certain types of financing,such as MHFA and DEED. Chair Wilson asked staff,Ehlers and Briggs&Morgan to provide clarity on the profile of the typical Jackson Block resident. Ms.Mehelich added that the minimum annual salary requirement of a resident is approximately$36,000 per year and that Section 8 vouchers would not apply. Ms.Mehelich referenced the Project Description handout,which states the • monthly rent payment for Jackson Square housing unit. Ms.Mehelich mentioned that the