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City Council Minutes <br />January 3, 2022 <br />Page 4 <br />Ms. Huot stated she could research the matter further with the attorney and bring <br />forward contract language. <br />Mayor Dietz asked about the city's TIF policy and whether need is taken into <br />consideration. He noted there are currently a lot of multifamily housing projects <br />being built and questioned if we are at capacity with apartment type housing. He felt <br />need should be taken into consideration if using TIF funding. He expressed concern <br />with future phases at this location and more TIF requests coming forward. <br />Mr. O'Neil stated multifamily housing need is based on studies completed by the city <br />and Sherburne County. He stated these two studies identified the type and quantity <br />of units specifically needed in Elk River. He stated the current project fits into the <br />category of an identified need for the community to meet its housing demand <br />through 2024. He stated a housing TIF district is a Council policy question. <br />Mayor Dietz expressed concerns with building apartments on property that needs a <br />million dollars' worth of assistance when apartments are currently being built all over <br />the city and they are not asking for any city funding assistance. He feels the main <br />purpose of TIF funding is economic development and not housing. He is not against <br />this project but expressed concerns with the shift in philosophy and would like to see <br />more businesses, who generate more tax money, coming to the city versus creating <br />subsidized housing. He stated this project has a long payback period and he is <br />concerned with the applicant coming back in the future for additional similar <br />projects. He stated this project will cost the city $25,000 per unit. <br />Councilmember Westgaard questioned the Housing and Redevelopment Authority's <br />(HRA) discussion. <br />Councilmember Wagner stated overall the HRA was supportive of the project but <br />did have questions about soil viability and future phases. She noted the city can't <br />look at the future phases, but only the project currently before them. She supports <br />the project based on a shortage of workforce housing in the area. She stated it is a <br />necessity within the business community, noting people have gotten jobs, but can't <br />take them because they can't find affordable housing in the area. She further stated <br />she would like to see a summary of the city and county housing studies in reference <br />to the current inventory and the levels of market rate, affordability, and the number <br />of units verses population. <br />Councilmember Christianson agreed on a review of the studies and suggested a <br />future discussion regarding the direction Council would like to see for housing. <br />Larry Toth, HRA Commissioner, stated the peat drops deeper the further north you <br />travel on the site and the city may not have an interest in supporting future projects. <br />Councilmember Beyer stated he understands the mayor's concerns and has the same <br />concerns and further understands how it supports the business community. <br />1 I I I I F I I T <br />NATUREI <br />