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Housing and Redevelopment Minutes <br />June 5, 2023 <br />information. <br />Page 3 <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'/4 of the need. <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 />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 />Commissioner Larson -Vito asked if Mr. Duffy knew what kind of support was being considered in other <br />cities regarding this application. <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 />Vice Chair Wagner asked for more details about the project and a proposed parking adjustment request. <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 />Commissioner Cannon asked if they will also manage the building once it's built. <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 />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 />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 />interesting piece with real challenges as expressed a year ago by the council on TIF as related to housing. <br />p a I I R I I RY <br />NATURE <br />