4.1 HR MIN 10-07-2013 DRAFT - Laserfiche WebLink

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HRA Minutes Page 2 October 7,2013 6.I Pledge of Allegiance It was the consensus of the HRA to add reciting the Pledge of Allegiance to the start of the HRA meetings beginning next month. 6.2 Black Hawk Woods Housing TIF Brian Beeman reviewed the request by Senior 30 Elk River Limited Partnership and Roger Derrick for a Tax increment Financing (TIF) project. The project consists of an 84-unit one-level rental project for age 55 and older with low and moderate incomes. The project includes 49 one-bedroom and 35 two-bedroom apartments and a clubhouse activity center. Mr. Beeman introduced Mikaela Huot of Springsted Inca Ms. Huot provided a PowerPoint presentation of Springsted's review of the TIF proposal. Ms. Hout concluded that based on the information provided by the applicant, Springsted could support the city proceeding with consideration of approval of the TIF District, as the project meets the "moderate" criteria of the City of Elk River's TIF Worksheet and Policy. Chair Wilson asked if the "55 and older" restriction would need to be maintained indefinitely. Ms. Huot stated that the age restriction would not be a requirement of the TIF. Commissioner Motin asked if the age restriction could be required in the Developer Agreement. Ms. Huot stated that would be up to the city. Commissioner Motin asked staff if there were any other residential TIF districts created in the past. Tim Simon, Finance Director, stated that the earliest residential TIF was TIF District #10 on 4th& 5th Street,back in 1992. The only other TIF where residential was included was the mixed use for the Bluff Block (commercial office/residential). Commissioner Motin stated that he did not feel this project was a good use of TIF, and he was not in favor of using TIF for residential use, since no jobs are being created. He stated that he questioned the the analysis criteria and scoring. Commissioner Motin expressed his concern for the city receiving no taxes on this property for 23 years. Ms. Huot stated that the applicants did provide a 15-year scenario,but that would leave a$15,000 gap upfront. She stated that by possibly cutting costs (i.e.,reducing developer fees, etc.) there could be flexibility for a 15-year TIF project. Chair Wilson asked if the HRA approved the resolution recommending the City Council call a public hearing on the matter,would there still be time to request a revision of the application. Ms. Huot stated yes. Commissioner Toth asked if the HRA could voice their opinion at the public hearing. Ms. Huot stated that the City Council will take public comment at the public hearing. Discussion followed regarding the current property tax ($6,000/year) and the fact that the city would not receive taxes on the property for 23 years. INATUREI