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Housing and Redevelopment Minutes Page 3 <br />June 5, 2023 <br />----------------------------- <br /> Mr. O’Neil stated an updated study is being put together and Mr. Duffy would present some further <br /> information. <br /> <br /> John Duffy, Duffy Development, discussed the market study that he has in the works but is still 3-4 weeks <br /> away from being completed. He stated the study provided him with information as of today for Elk River <br /> which shows a need for 204 affordable senior households. He stated they break it down by housing types <br /> and income levels. Mr. Duffy’s specific proposal would hit the income groups that meet 165 of those <br /> households. His proposal is for approximately 50 units, and the households that are making $30-57,000 a <br /> year are struggling to find housing. His project will address 1/3 or ¼ of the need. <br /> <br /> Mr. Duffy stated his request is twofold: first, a letter of support for the idea of Duffy Development making <br /> an application for the state for financing for affordable senior housing; the second request is asking about <br /> the areas entitled ‘readiness to proceed’ and ‘other contributions’, which is tax increment financing (TIF), <br /> abatement of property taxes, or some adjustment in property taxes or deferred loans. He stated the city can <br /> also help with in-kind request, such as adjustments to materials or parking requirements. He stated fee <br /> waivers for building permits, SAC fees, etc., also helps. Duffy Development will also put in funds into this <br /> project. <br /> <br /> Commissioner Cannon stated she would support their application but was not interested in putting a tax <br /> burden on the residents and businesses by reducing taxes or fees. She wondered about park dedication fees <br /> being adjusted. <br /> <br /> Commissioner Larson-Vito asked if Mr. Duffy knew what kind of support was being considered in other <br /> cities regarding this application. <br /> <br /> Mr. Duffy wasn’t aware of the activity in other cities but in his conversations with other developers, they say <br /> this is the year to apply because legislators have provided a higher amount of funds this year. <br /> <br /> Vice Chair Wagner asked for more details about the project and a proposed parking adjustment request. <br /> <br /> Mr. Duffy indicated it will be approximately fifty 55+ affordable senior housing units. He stated the site <br /> would support 70 units but with funding maximums, it seems more economic and realistic to build around <br /> fifty units. He stated because seniors only have one car, they only need about 1.35 parking, which is less <br /> than the required 2.25. <br /> <br /> Commissioner Cannon asked if they will also manage the building once it’s built. <br /> <br /> Mr. Duffy indicated there are state equity requirements and factors that haven’t been determined yet so he <br /> isn’t sure if they will manage the building. <br /> <br /> Commissioner Ovall stated he would be interested in hearing the council’s perspective on funding support. <br /> He would be more in favor of TIF as opposed to in-kind and fee waivers. He stated this kind of projects are <br /> huge assets to the city to get these dollars. He stated if there is a project that makes sense for this kind of <br /> financing would fall into the category. He also supported a pay as you go reimbursement because the <br /> mechanics and optics of TIF is more desirable. <br /> <br /> Mr. O’Neil provided some thoughts about the concerns with the solvency of the HRA cash balance in <br /> conjunction with the city potentially receiving multiple projects of this sort. He commented TIF is a very <br /> <br />