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Pt inn Q � 061 ' W11 Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101 -2887 Tel: 651 - 223 -3000 Fax: 651 - 223 -3002 www.springsted.com TO: Members of the Housing and Redevelopment Authority of the City of Elk River Brian Beeman, Economic Development Director FROM: Mikaela Huot, Vice President Tom Denaway, Analyst DATE: October 4, 2013 SUBJECT: Tax Increment Financing Application Review Worksheet The City of Elk River has asked Springsted to evaluate the tax increment financing (TIF) request submitted by Senior 30 Elk River Limited Partnership (the developer) for the proposed development of a senior housing rental project consisting of approximately 84 one -level townhome units. The City's Tax Increment Financing Policy also requires that the Tax Increment Financing Application Review Worksheet be completed to evaluate the project and ensure it meets the criteria of the City's policy. The application for Tax Increment Financing proposes the development of a senior living townhome community. The Developer is proposing to construct an 84 -unit townhome development, containing 49 one - bedroom units, 35 two - bedroom units, and a clubhouse activity center, Additionally, each unit will include an attached garage. The development is proposed for persons of low and moderate income; which will result in income limitations for potential residents and reduced rental rates. The Developer will be undertaking both the construction and operation of the proposed development. Attached to this memo are the results of Springsted's review based on information provided by the Developer and the City's existing Tax Increment Financing Policy and Application. It should be noted the Application Review Worksheet includes questions focuses more on commerciallindustrial development with job creation goals than affordable housing. However one of the objectives of the City's Tax Increment Financing Policy as listed on page 3 of the application is to create opportunities for affordable housing. Our initial review of the project and completion of the worksheet would rank this project as moderate based on a high, moderate, low and not eligible scale. Public Sector Advisors