07-06-2020 HRA MIN - Laserfiche WebLink

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Housing and Redevelopment Minutes July 6, 2020 Page 3 Commissioner Chuba stated he is in favor of workforce housing for our city but not in favor of providing workforce housing to folks that work outside of our city and stated he is ambivalent about his vote tonight. Mr. Walsh stated this project will be marketed to attract local workforce in and around Elk River as the demand analysis he found showed their affordable rents are designed for the local workforce. Commissioner Chuba stated he had read income levels are 50% of the local average income and explained the distance to a local grocery store from this location was about a 1 -mile walk, not conducive in wintertime. He wonders if there's well paid jobs in the neighborhood and felt there is a need for this type of housing but not in this location. Mr. Walsh indicated the income levels are 60%. Chair Toth asked if the train station was a precursor of the apartment building and an amenity. Mr. Walsh stated its proximity of the housing to the train station would be considered an amenity. Commissioner Ovall asked for clarification that the financing they are applying for would be considered true workforce housing and 100% affordable income level housing. Mr. Walsh stated Commissioner Ovall was correct. Commissioner Chuba explained his hesitation to support this location based upon his experience living in Brooklyn Park and the mistakes he felt were made with lower income housing. Jennifer Jacox, CEO for BDC Management which manages all of CHDC properties, explained the income level amounts and salary figures. She stated for a 1 person unit, the annual income level is $43,500 with an hourly wage of $20.88 per hour, and would cover such careers as new airline pilots and teachers. She stated a 2 -person annual income level would be $50,000 with an hourly wage of $24.00. She indicated these may be one person working with one person as a stay -home parent or student. She stated a 3 -person annual income level would be $56,000 and a 4 -person at $62,000. She stated families would require a 3 -bedroom unit, and typically would be someone works with a stay -home parent. She stated these units are true workforce housing, not Section 8 housing, and rents will be fixed and in line with other rental markets. She stated she does not foresee tenants who chose to Eve in these units using the light rail for working downtown. Commissioner Ovall asked about other projects and what percentage of the tenants are from the immediate community. Ms. Jacox stated a majority of tenants are from the immediate community with some tie to the area, either they grew up here or have family nearby. They also chose to live in a near proximity to the grocery store.