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City of <br />Elk <br />River <br />Request for Action <br />To <br />Item Number <br />joint Finance Committee <br />4.2 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />General Business <br />October 26, 2021 <br />Brent O'Neil, Economic Development Director <br />Item Description <br />Reviewed by <br />TIF Application Jackson Hills Second Edition <br />Cal Portner, City Administrator <br />Reviewed by <br />Action Requested <br />Item presented for information and discussion purposes. <br />Background/Discussion <br />The city received an application for Tax Increment Finance (TIF) from Briggs Companies to complete a <br />multi -family housing project known as Jackson Hills II at Jackson Avenue and Sixth Street. The project is <br />similar in size and design to the Jackson Hills project which recently opened and received approval of <br />TIF in 2019. <br />Key parameters of the project and TIF request are stated below: <br />■ 44-unit apartment building with a mix of studio, 1, 2 and 3 bedroom units. <br />■ Twenty percent of units are proposed as income restricted. <br />■ 88 total parking spaces. <br />■ Project budget of $8.59 million - $6 million in financing, $2.59 million from equity sources. <br />■ Current taxes are at $4,400. Developer projects taxes after completion at $88,000. <br />■ TIF request: 15 years at 90% increment capture. <br />■ Overall site excavation and grading of $760,000 covers extraordinary costs for soil corrections. <br />The city anticipates engaging Baker Tilly to complete a financial analysis and returning to the Joint <br />FinanceCcommittee for a review and recommendation to the Housing and Redevelopment Authority. <br />Financial Impact <br />The project is requesting TIF at the maximum allowed by city policy for a housing district. The developer <br />would receive 90% of the tax increment generated from the project during the entirety of the TIF district. <br />Mission/Policy/Goal <br />The Joint Finance Committee is an advisory committee to the EDA and HRA. <br />Attachments <br />■ Application materials <br />The Elk River Vision <br />A welcoming community nrith revolutionary and spirited resourcefulness, exceptional p p x E R E o R r <br />service, and community engagement that encourages and inspires prosperity IkIA <br />UR <br />