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Request for Action <br />To <br />Item Number <br />Mayor and City Council <br />10.1 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />Work Session <br />February 5, 2018 <br />Amanda Othoudt, EDD <br />Item Description <br />Reviewed by <br />Jackson Hills Residential Suites, LLC and Elk River <br />Cal Portner, City Administrator <br />Reviewed by <br />Lodge Suites, LLC Housing TIF Application <br />Action Requested <br />Receive information on the proposed affordable housing projects, financial assistance applications and <br />recommendation by the HRA, and provide direction to staff. <br />Background/Discussion <br />The Jackson Hills Residential Suites project is a proposed 40 -unit market -rate and affordable housing <br />project located at the intersection of 6th Street and Jackson Avenue. The developer applied for Tax <br />Increment Financing (TIF) assistance through the establishment of a 26 -year Housing TIF District to <br />finance the portion associated with affordable housing. <br />In addition, the developer also submitted a request to pool increment generated by the Jackson Hills <br />Residential Suites project to reimburse the developer for interior and exterior renovations to convert the <br />existing Elk River Lodge site into affordable housing. <br />The HRA will be reviewing the application and recommendation provided by the joint Finance <br />Committee prior to the Council work session this evening. Staff will provide an update to the Council. <br />Financial Impact <br />The Jackson Hills Residential Suites Housing Project is estimated to generate $1,340,872 in total gross tax <br />increment from city, county and school district taxes over 26 years, the maximum term for a housing <br />district. The net amount available to the developer is $1,206,790 or 90 percent of those taxes, with the <br />city retaining 10 percent for administrative expenses over the term of the district. <br />The developer requested $1,206,790, or 90 percent of increment over 26 years with an estimated present <br />value of $677,707. <br />Per the city policy, the total estimated gross increment available for housing projects is $773,580 over 15 <br />years, or the maximum term allowed under the policy. The developer could receive 90 percent of the <br />gross increment over 15 years of $696,225 at a present value of $480,523. <br />Attachments <br />■ Joint Finance Committee Packet <br />■ Housing TIF Timeline <br />The Elk River Vision <br />A PehoMing community Pitb revolutionary and spirited resourcefulness, exceptional P,` 01 W E H E 8 6 T <br />service, and community engagement that encourages and inspires prosperity INAMIRE1 <br />