7.1 HRSR 03-03-2014 - Laserfiche WebLink

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/ City cf lk Ri,F6r To Item Number Housing & Redevelopment Authority 6.2 Agenda Section Meeting Date Prepared by General Business October 7, 2013 Brian Beeman, Director of Economic Develo went Item Description Reviewed by Black Hawk Woods Housing TIF Jeremy Barnhart, Deputy Director, CODD Reviewed by Action Requested Review Black Hawk Woods Housing TIF project and approve a resolution to make recommendation to the City Council to set a Public Hearing for Monday, December 2, 2013. Background/ Discussion Senior 30 Elk River Limited Partnership and Roger Derrick proposes Blackhawk Woods, an 84 unit one - level rental project serving residents aged 55 and above with low and moderate incomes pursuant to Section 42 of the IRA Tax code. There are 49 one bedroom and 35 two bedroom apartments and a Clubhouse Activity Center. Each housing unit includes an attached garage. There is no medical staff or assisted living personnel on site, although individual assistance can be contracted through Guardian Angels or others. The project will serve seniors with incomes from $20,000 to $40,000. (the maximum 2 person income allowed by HUD). It will offer townhome rents based on 30% of income. Monthly rents for the one bedroom unit will range from $500 -775. Two bedroom units will rent from $795 -$975 a month. Blackhawk Woods is located at 183" j NW at Yankton, Elk River, MN, Lots 1 -41, BL 1, West Oaks Third Addition and Outlot A, West Oaks Fourth Addition. (A map is attached) Current real estate taxes on the property is $6,000. After the project is completed, the proposed real estate taxes is anticipated to be $94,500. The applicant is planning the construction to begin in late spring or early summer of 2014 with expected completion of the project by fall of 2014. The applicant requests pay as you go TIF, over 25 years. The city would retain 10% as an administrative fee. Because there will be no children living in the development, the developer does not believe there will be a negative impact on schools or parks. Springsted has reviewed the project and it scored moderately on the high, moderate, low and not eligible scale. Therefore, the project is eligible for further review and consideration. It should be noted that some of the questions within the application focus more on commercial /industrial projects, making them not applicable for this project. As a result, staff supports this project. Springsted, the City's Financial Consultant, will be providing a presentation of the project and the TIF process, and will be available for questions. As part of the TIF requirements for housing TIF's, the HRA