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Home My WebLink About06/23/2016 EDA Special Informal Meeting••• •••• ••••• ••• Meeting Location: Municipal Center city of le 7100 147th Street West Valle Apple I Valley, Minnesota 55 124 NOTICE: The Apple Valley Economic Development Authority will hold a Special informal meeting at the Municipal Center, on Thursday, June 23, 2016, at 5:45 p.m. to consider the items listed in the following agenda: June 23, 2016 ECONOMIC DEVELOPMENT AUTHORITY MEETING TENTATIVE AGENDA 5:45 p.m. 1. Call to Order 2. Discussion Items A. Review of Dakota County's Community Development Agency's Creation of TIF District for Valley Bluffs Senior (Preliminary Platted as Hudson Division) B. Discuss TOD Redevelopment and Repositioning at 147th Street/Garrett and Glazier Avenue and Proposed Submission of LCDA Grant 3. Other Items 4. Adjourn City of APPIIey TO: Chair, Commissioners, Executive Director FROM: Bruce Nordquist, AICP, Community Development Director MEETING DATE: June 23, 2016, 5:45 p.m., Regent Meeting Room MEMO Community Development ,2A SUBJECT: CDA request concerning TIF District support for Valley Bluffs Senior Housing by Dominium On May 26, The EDA reviewed a request of support for a Tax Increment Financing (TIF) application made by Dominium to the Dakota County Community Development Agency (CDA). The EDA comments included: • Two EDA members were not able to attend and their participation and feedback was valued. • Need to provide sufficient information to understand that but -for the requested assistance, the affordable housing TOD project cannot proceed. • Clarify the Developer equity and fees in the project. • Explain competitive marketplace rents vs. the affordable rents achieved with the assistance. • Explain base taxes that remain to pay for city services. For June 23, the CDA has prepared: (and copies are attached) • A brief memo highlighting what will be discussed at the Thursday EDA meeting. • Powerpoint information, answering a number of the questions (market vs. affordable rents, taxes, developer investment). o Dominium also has a brief video they would like to show. • A summary from Ehlers, (the CDA financial consultant), on the most recent TIF financial analysis. • An explanation of how CDA/TIF funds have been utilized in the past in Apple Valley to support affordable housing. Confidential, private financial information was provided to the EDA for the May 26. Let me know if anyone needs an additional copy. The proforma includes the request for City reprograming of CDBG funds for this affordable housing project. That request is being addressed at a later date but consistent with the need that has been expressed to offer affordable housing choices in Apple Valley. ,,,,,,,40.01001,0aWf.MaiagMeaVAM Dak.Ota County_ 1228 lOwn C;f,:intre DriVe C;OilTrITUr IJEYVE.',HOPrnth 4400 7 71 ikqE?-ricy June 20, 2016 Mr, Bruce Nordquist City of Apple Valley 7100 14.7'Street VV. Apple Valley, MN 55124 Dear Bruce Earlier this year, °minium Development, LLC submitted an application to the Dakota County CDA for a housing Tax Increment Financing district to support the 163 -unit Valley Bluffs senior apartment project in Apple Valley. The project is estimated to cost over $35 million, The developer has also requested additional financing tools administered through the CDA, which will be reviewed by the CDA Board later this year, The layering of financing tools is common for affordable housing developments, and similar arrangements have been used by the CDA for other developments in Apple 'Valley: e.g. Hidden Ponds apartments and Hearthstone apartments. Without a mix of financing tools, it simply is not possible to construct housing that is affordable to residents, in this case seniors, making no more than 60 percent of the Area Median Income (AMI), The CDA will not consider private TIF requests unless a resolution is passed by the respective city council authorizing the use of TIF and requesting the CDA proceed with the development of a TIF district, Though the City has not yet provided this resolution of support, the CDA engaged Ehlers as its TIF consultant to complete the analysis of the developer's financials when the TIF application was submitted. Over the last few months, Ehlers has probed the developer's information to ensure the CDA and other governmental bodies provide the least amount of financial support needed to ensure the project can proceed. When we last met with the Apple Valley Economic Development Authority (EDA) on May 261n, the Commissioners requested additional information in order to feel comfortable passing the resolution of support. At the June 23ra EDA meeting, the following information will be discussed, which we hope will be sufficient: The role of the CDA and background information on CDA TIF policy Market demand for senior housing Dominium's request for TIF; a presentation from Dominium outlining this request and the market demand is attached Project financing Ehlers' analysis of the TIF request; a presentation from Ehlers is attached The impact of the TIF district on the City, County, and school district We are looking forward to a fruitful discussion on Thursday, and hope there will be enough information for the City to determine if it wishes to support the use of TIF for the Valley Bluffs development, Best regards, DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Margaret Dykes Assistant Director of Community and Economic Development s s d s d d s x x x x x s s f f d d d d d d f d d d d City of APPIIev TO: Chair, Commissioners, Executive Director FROM: Bruce Nordquist, AICP, Community Development Director MEETING DATE: June 23, 2016, 5:45 p.m., Regent Meeting Room MEMO Community Development SUBJECT: Livable Community TOD Grant Application at 147th Street/Garrett and Glazier Ave z8 The EDA is conducting an informal meeting on June 23 starting at 5:45 p.m. The following item will be presented as time permits. During the Spring, 2016, property owners at Commons I & 11 and Paideia Academy were undergoing changes that allow new opportunities to be considered: - Commons II was planned to be sold by the owner and renovated by a buyer. - Commons I was planned to be renovated by the present owner, John Hanson. - Paideia Academy determined they would no longer lease their existing space and the ownership, Metro Equity LLC, could consider other options Working with staff, it was determined that redevelopment led by the property owners, to include Bogarts, allows about 5 acres on the east end of the 21 acre block to have a higher intensity mixed use (housing, retail). Those new uses when combined with the office updates, would allow the entire larger block to be re -imagined, an interest of all property owners including Wing's Financial. Approximately 260 apartments or condominiums and 42,000 sq. ft. of first floor retail is proposed through redevelopment. Through owner's representation, staff has received the following concept (see attached plans) and is planning to request a Livable Community Transit Oriented Development Grant in the amount of $1.7 million. Use of funds: • $500,000 toward demolition of Paideia and Bogart uses. • $500,000 toward structured parking for Commons II with the renovation of the office space. • $500,000 toward storm water improvements interior to the location and access improvements at the perimeter of the redevelopment area. • $200,000 toward improved pedestrian and bicycle trails on the block and leading toward the 147th Street transit station. The Livable Community grant application must be submitted by July 1, 2016. An official resolution of support would be sought in July from the EDA and City. a a a s s s ss