7.8. HRSR 02-05-2018 - Laserfiche WebLink

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Request for Action To Item Number Housing and Redevelopment Authority 7.8 Agenda Section Meeting Date Prepared by Work Session February 5, 2018 Amanda Othoudt, EDD Item Description Reviewed by Jackson Hills Residential Suites, LLC and Elk River Cal Portner, City Administrator Lodge Suites, LLC Housing TIF Application Reviewed by Action Requested Provide recommendation to the City Council regarding potential Tax Increment Financing District No. 25. Background/Discussion The Jackson Hills Residential Suites project is a proposed 40-unit market rate and affordable housing project located at the intersection of 6th Street and Jackson. The developer applied for Tax Increment Financing (TIF) assistance through the establishment of a housing TIF district over 26 years to finance the portion associated with affordable housing. In addition, the developer also submitted a request to pool increment generated by the Jackson Hills Residential Suites project to reimburse the developer for interior and exterior renovations to convert the existing Elk River Lodge site into affordable housing. The Joint Finance Committee reviewed the application at their meeting on January 31, 2018, and a motion was made by Mr. Provo and seconded by Ms. Magnussen recommending the HRA approve establishing a 26-year, non-contiguous Housing TIF District No. 25. The motion carried 7-2 with Mr. Hardin and Mr. Toth opposed. According to the city’s policy adopted by Council on December 14, 2017, TIF districts shall be limited to the minimum term necessary to meet the project needs. Only projects exceeding the objectives identified in the policy will be considered to exceed the maximum term allowed for housing projects of 15 years (26 Max) for housing districts. Staff’s concern is the Jackson Hills project whether pooled with the ER Lodge garage construction or alone does not “exceed” the objectives identified in the policy as required to merit the TIF extension. The Jackson Hills project should not extend beyond a TIF term of 15-years per the city’s policy. In addition, pooling increment from Jackson Hills to the Elk River Lodge project should not be needed as this project was already approved as an apartment complex by the City Council on its own merit in order to come into compliance with the city zoning code. The City Council will be holding a work session following the HRA meeting this evening to review the proposed project, financial application, and recommendation provided by the HRA. The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity