8.2 SR 06-20-2023 - Laserfiche WebLink

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�, Elk s �- River Request for Action To Item Number Ma Tor and CinT Council 8.2 Agenda Section Meeting Date Prepared by General Business une 20, 2023 Brent O'Neil, Economic Develo ment Director Item Description Reviewed by Duffy Development Compan�T Request for Support of Cal Pormer, Ci r Administrator Coachman II State Funding Application Reviewed by Action Requested Approve, byT motion, a letter of support for Duffy Development CompanyT state funding application for the proposed Coachman II housing project. Background/Discussion DuffyT Development (DuffyT) is proposing an affordable housing project on propertyT it owns near the North Star Station. This propertyr is adjacent to Coachman Ridge ApaYtments, also owned by Duffyr as is The Depot at Elk River Starion nearby. The proposed project is for appro�matelyT 50 units targeting residents aged 55 and older with affordable rents for incomes at 30% to 50% of area median income. This correlates to rent range from $600 to $1,250 depending on the size of the unit The total project is expected to cost $15 to $18 million. To support the affordabilityT component, DuffyT `vill applyT for funding through the iVlinnesota Housing Finance AgencyT, which includes low-income housing tax credits. DuffyT has requested support from the cityT to ensure their strongest application is submitted. The application is due in mid JulyT. State a`vards are tyTpicallyT determined annually in DecembeY, with projects commencing 6-12 months afteY. There are t�vo primaryT `vayTs the cityT can support the application. First, is an expression of support for the application, which is included in the attached draft letter. Second, is an expression of local financial commitment or financial participation in the project, which results in additional points within the application scoring rubric. The project has been presented to the Housing and Redevelopment Authorit�r (HRr�) in `vork session at its MayT and June meetings. The HRA has also reviewed the cityT's 2018 housing stud�T by Maxfield as part of this request. The HRr� expressed support for the project and application based on the need for 55+ affordable housing as identified in the housing studyT. The HRr� also provided feedback on potential local financial participation, suggesting that an incentive could be considered based on the total need and impact, but that additional review and analysis would be necessary prior to any foYmal consideYation. The HRA also expYessed a benefit of the project is that substantial YesouYces to suppoYt this ty�pe of project in Elk River aYe from exteYnal souYces. Additional requests to support the project would require working through established city processes and protocols, including, for example in the case of a tax incentive, a formal application and thorough review. The parcel in question is guided towards multi-familyT residential. As it is presentlyT zoned FAST, it would require a rezoning to a multi-familyT housing district. The Elk River Vision A 2a�elcolning co�nlnunity 2a�ith T evolutiona� y and spizzted T esou� cefulness, exceptional se�vice, and coln�nunity engagelnent that encou�ages and ins�iz•es pTo�pe�zty. rowEREo ar �I'1 �� Update�l• January 2023