4.1. HRA DRAFT MINUTES (2 SETS) 06-05-2023

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Housing and Redevelopment Minutes Page 3 May 1, 2023 ----------------------------- downtown. Commissioner Ovall echoed Commissioner Wagner’s statements, indicating a community survey will not reveal anything surprising. He felt it would be a way to get community engagement but doesn’t want to throw money and resources at it. He’s worked downtown for 20 years he agrees in the need. 7. Adjourn Regular Meeting Moved by Commissioner Wagner and seconded by Commissioner Cannon to adjourn the regular meeting of the Housing and Redevelopment Authority. Motion carried 4-0. The regular meeting adjourned at 5:49 p.m. Chair Chuba called the work session to order at 5:52 p.m. 8.1 Duffy Development Housing Proposal Mr. O’Neil introduced Jeff Von Feldt and John Duffy of Duffy Development, who presented a concept project. Mr. Von Feldt began by discussing the need for lower income senior housing units in the area as outlined in the 2022 housing study. They presented a unique opportunity to obtain one-time funds through MN Housing currently being discussed in the legislature. The one-time funds create an opportunity for Duffy Development to propose a 50-unit senior housing building to be built on property they own adjacent to Coachman Ridge and the North Star transit station and would be similar in size to Coachman and the Depot. The funds, once approved by the legislature, would require them to submit application in July and funds would be awarded based upon an application 30–40-point scoring system. They would be competing with other projects and were asking the city for support. Mr. Von Feldt outlined their support needs, stating a higher score gives them a better chance of being awarded funding. He and Mr. Duffy asked for an opportunity to sit down with the HRA and staff to discuss further details and obtain either a letter of project support from the city, financial support, or in- kind support (waiver of fees such as park dedication, SAC/WAC, building permits, etc.), direct grants/loans, and Tax Increment Financing (TIF). Mr. Von Feldt outlined potential rents proposed for the project, with all units affordable to incomes at or below 60% of the area median income. Rents would be at 30 to 50% of area median. Rents on a one- bedroom home will range from $600-$1,045 and two-bedroom homes will be $725 -$1250. He noted this was a unique scenario in a market not served well in the city and felt it would be a good project for Elk River. The HRA discussed the application deadline and timeline needed for meeting to discuss the proposal. The project would require city council resolution supporting the development and the concept of tax increment financing. The application would also require the city’s financial consultant to create a TIF run to see what that would generate, which would support a higher score. Mr. O’Neil indicated the TIF decision would take longer than their proposed July application deadline and asked if they envisioned applying for TIF.