6.1. PCSR 12-21-2021 - Laserfiche WebLink

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bakertitly MUNICIPAL ADVISORS Memo To: City of Elk River Planning Commission Brent O'Neil, City of Elk River From: Mikaela Huot, Director Date: December 21, 2021 Subject: Proposed Tax Increment Financing Plan for Tax Increment Financing (TIF) District No. 28 (Jackson Hills Phase II Housing Project) At its Tuesday, December 21 meeting, the City of Elk River Planning Commission is being asked to review the amended Development Program for Development District No. 1 and the proposed Tax Increment Financing Plan for Tax Increment Financing District No. 28 for Jackson Hills Phase II Housing Project (the "Plans"). The Planning Commission review of the Plans is pursuant to the TIF Act. Pursuant to MN Statutes 469.175, Subd. 3, the City needs to make certain findings that include the following: 1. The TIF District qualifies as a housing district; 2. The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future; 3. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the Project Area by private enterprise; and 4. The TIF Plan conforms to general plans for development of the City as a whole. The City Council will hold a public hearing on Monday, January 3 to consider approval of the TIF District, after making the findings outlined above. The public hearing date is the time in which City Council would take any public comment, and after the hearing, consider the adoption of a resolution approving the TIF District. Multiple steps are followed to allow for establishment of a tax increment financing district, including notifications to the County and School District, Planning Commission review and approval, HRA review and recommendation, publication of a public hearing notice, and the holding of a public hearing. Notices have been sent to the County Commissioner on November 18 and County and School Board (draft TIF Plan and fiscal and economic impacts) on December 3. Publication of the hearing notice for the TI F District creation will be Saturday, December 18 in Star News. HRA review is scheduled for January 3. Background The City of Elk River is considering the establishment of a Tax Increment Financing (TIF) District to assist with financing a portion of the costs associated with development of an approximate 44-unit multifamily housing project, of which approximately 9 units will be affordable. In order to comply with the requirements of a Housing TIF District, at least 20% of the units will be occupied by persons with incomes no greater than 50% of the area median income. The City anticipates using tax increment to finance eligible costs associated with development of the project site including site improvements related to soils correction, as well as related administrative expenses. The project is expected to commence in 2022 and be fully constructed by December 31, 2023 and 100% assessed and on the tax rolls as of January 2, 2024 for taxes payable in 2025. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances,the services of a professional should be sought. Baker Tilly Virchow Krause, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd.,the members of which are separate and independent legal entities.©2018 Baker Tilly Virchow Krause, LLP