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<br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 8.2 <br />Agenda Section Meeting Date Prepared by <br />General Business January 3, 2022 Brent O’Neil, Economic Development Director <br />Item Description Reviewed by <br />MHFA Workforce Housing Development Cal Portner, City Administrator <br />Program Grant Request <br />Reviewed by <br /> <br /> <br />Action Requested <br />Approve, by motion, the attached resolution supporting an application to the Minnesota Housing Finance Agency <br />for a workforce housing grant. <br /> <br />Background/Discussion <br />Briggs Companies is proposing the construction of Jackson Hills II, a housing development of 44 apartments at <br />Sixth Street and Jackson Ave. In addition to requesting Tax Increment Financing through the city, Briggs <br />Companies is pursuing additional funding sources to finance the project and has request the city partner on an <br />application to the Minnesota Housing Financing Agency (MHF) under its Workforce Housing Development Grant <br />and Deferred Loan Program. <br /> <br />This MHF program supports workforce housing projects in greater Minnesota. Under the parameters of the <br />program, the city would be the applicant and recipient of funds. The developer would be the subrecipient of funds, <br />and the city could distribute those funds as a grant or forgivable deferred loan. Briggs Companies has indicated <br />requesting up to $750,000. Among the benefits of utilizing the program are potentially modifying the local <br />contribution of TIF to the project, strengthening the feasibility of the project, and increasing the impact of the <br />project through additional units. <br /> <br />The attached resolution attests to the council’s direction to apply for the program. Any award of funds would <br />require agreements between MHF and the city, as well as between the city and developer. Further, the city would <br />conduct an additional financial review of the project to ensure TIF is being utilized in a prudent manner. <br /> <br />Financial Impact <br />Funds received by the city would be distributed to the developer for a net neutral financial impact to the city. <br /> <br />Mission/Policy/Goal <br />This request supports the goal of increasing the supply of housing in Elk River. <br /> <br />Attachments <br /> Local Government Resolution of Support <br /> Program Information Sheet <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br /> Updated: August 2020 <br />