4.1. DRAFT MINUTES 02-20-2018 - Laserfiche WebLink

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City Council Minutes Page 6 February 5,2018 ----------------------------- Ms. Othoudt stated the applicant is requesting to pool the two projects,which is not specifically addressed in city policy. She stated her recommendation is to consider Jackson Hills and Elk River Lodge Suites as separate projects. She stated the Hills project, as a stand-alone project, can be justified through the affordable housing needs study and it fits within the guidelines of city policy. She stated the Lodge project, as a stand-alone project, does not meet policy guidelines as it doesn't generate increment based on the analysis provided by Springsted Consultants. Ms. Othoudt stated the garages in the Lodge project site would add about $87,500 worth of new value. She noted the applicant has pulled a permit for the Lodge project and already commenced construction. She stated construction has already commenced on the Lodge project and it would be a difficult argument to meet the but for analysis. She further stated the applicant is legally obligated to build a 25-unit garage and have onsite parking spaces to convert his property from an extended stay hotel. She stated the applicant is required to construct the garages/parking with or without Tax Increment Financing (TIF) in order to make it a legal use. Ms. Othoudt stated the Finance Committee looked at this project pooled together and based on city policy,identified more than one public purpose that met the requirements to extend the terms of the TIF. She stated the Committee recommended approval for the project for 26 years. Ms. Othoudt stated the Housing and Redevelopment Authority reviewed the project and noted two of the five commissioners abstained from voting, one was absent, which left two to vote. One member agreed with the Finance Committee's recommendation of a 26-year term for a housing district and the other was more interested in looking at the policy and the two applications as a separate project. Ms. Othoudt discussed the options for Council. She stated Council could move forward with the Jackson Hills project and call for a public hearing on February 20, 2018. She stated if the Council doesn't feel the project meets city policy objectives, the project would be dead and come back to Council for formal denial. Ms. Othoudt noted city policy sets the maximum term at 15 years but state law sets it at 26 years. Councilmember Ovall questioned the standards for other communities and if the city is putting itself at a disadvantage by setting a policy maximum of 15 years. Mikaela Huot, Springsted, explained the different districts and stated most communities have a goal to reduce the terms of the district to the amount of TIF needed;hopefully for less than 25 years,noting housing districts are more unique than other districts and have more flexibility on what the dollars from the TIF district can be used for. She stated typically they are for acquisition, site development,anything prior to vertical development, and housing costs. She stated it really comes down to city policy,which is tied to community goals, and some may go the longer term because they really need affordable housing. She stated by providing a housing district, an applicant is agreeing to the affordability for the maximum term P 0 W I R I D 9 Y otmaA UREJ