05-01-2023 HRA MIN - Laserfiche WebLink

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Housing and Redevelopment Minutes May 1, 2023 downtown. Page 3 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 J 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 oider4�4t 5 52 p.m. 8.1 Duffy Development Housing Proposal Mr. O'Neil introduced Jeff Von Feldt and John Duffy of Duffy,.rDeveiopment, who presented a concept project. Mr. Von Feldt began by discussing the need for l©er.income senior housing units in the area as outlined in the 2022 housing study. They presented a unique-qTp`ortunity to obtain one-time funds through MN Housing currently being discussed in'1 ,l slature. The one -tithe funds create an opportunity for Duffy Development to propose a 50-u se�iox-housing_building �tbebuilt on property they own adjacent to Coachman Ridge and the North Star transit stat16n and would be sc ar in size to Coachman and the Depot. The funds, once approved by the legislature, would-kecjuire: theni to submit application in July and funds would be awardedbased upon an appUcat on,'�0-40-point scornig system. They would be competing with other projects an were asking the city f4 support. Mr. Von Feldt outlined their supp©rt 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. P 111 E R E I I r NA ! URf