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7.4 SR 06-01-2020Request for Action Cty Elk - River To Item Number Mayor and City Council 7.4 Agenda Section Meeting Date Prepared by Public hearings I June 1, 2020 Zack Carlton, Planning Manager Item Description Reviewed by Easement Vacation: Twin Lakes Road & 175th Cal Portner, City Administrator Avenue, Community Housing Development Amanda Othoudt, Economic Development Corporation Director Reviewed by Peter Beck, City Attorney Action Requested Direct staff, by motion, to prepare a resolution denying the request to vacate a portion of the right-of-way at the corner of Twin Lakes Road and 175`h Ave NW as the right-of-way may be needed for future public improvements and it would not be in the interest of the public to vacate. Review the conceptual development and provide informal, non- binding, feedback for the applicant. If the City Council supports project: Adopt, by motion, a resolution of support for the project and TIF application to support the applicant's state tax credit application. Background/Discussion The applicant, Community Housing Development Corporation, proposes to construct a 55-unit apartment building in the FAST — Hillside Estates zoning district at the corner of Twin Lakes Road and 175"' Avenue. The property is zoned FAST — Hillside Estates and supports high density residential uses, including apartment buildings. The Comprehensive Plan also guides the property for high -density residential uses and the is consistent with other residential uses Figure adjacent to the 4-lane segment of Twin Lakes Road. High density residential areas are generally used to buffer single-family areas from busy roadways and the project, comprehensive plan, and zoning reflect this practice. The Elk River Vision tikes /69 A nelcoming community nvith revolutionary and spirited resourcefulness, exceptional p o w E A E u s r service, and community engagement that encourages and inspires prosperity ,� g /� The proposal includes two phases with similar style apartment buildings. To support the use, the applicant has requested the vacation of a portion of the right-of-way at the corner of the property. The right-of-way follows the former roadway alignment, but the right-of-way does not currently support roadway or utility infrastructure. Easement Vacation The vacation would support the existing conceptual site plan and other future uses of the property. However, the 2018 Twin Lakes Road corridor study identifies a future roundabout at this intersection, which would utilize the existing right-of-way. The property across 175"' Ave is also owned by MnDOT and there is a significant amount of right-of-way available for the improvement. To reduce future land acquisition costs for an intersection improvement at the intersection of 175"' Ave and Twin Lakes Road, staff does not support the vacation and the request does not appear to be in the public interest. Tax Increment Financing The applicant submitted a separate application for a 25-year $780,000 TIF application. At their May 26, 2020, meeting, the Joint Finance Committee made a recommendation to the Housing and Redevelopment Authority to consider a letter of support for the project through tax increment financing, subject to the applicant receiving an allocation of tax credits and there being a continued demonstrated need for the additional 55 new affordable housing units in the amount of $780,000 plus interest over a period of up to 15 years. Supporting the conceptual apartment project does not require support for the TIF application. Resolution of Support The applicant also requested the City Council discuss the proposed housing project, independent of the right-of-way vacation, and, if Council supports the proposed use, asks for a vote to pass a resolution of support for the project and the TIF application. The applicant will be seeking state tax credit funding for the project which requires a resolution of support from the City Council. The resolution does not approve the project or the TIF application and the city will not be required to approve future land use applications for the site should Council adopt the resolution. However, high density uses are a permitted use on this site and a future site plan application, consistent with all standards in the ordinance, would not require Council review or a public hearing. Financial Impact The applicant has requested a 15-year $780,000 pay as you go tax increment financing application. Attachments ■ Location Map ■ Applicants Narrative ■ Letter to Council dated May 25, 2020 ■ Vacation Exhibit received May 14, 2020 ■ Conceptual site plan and renderings ■ Resolution supporting the project ■ Letter of support dated June 1, 2020 N:\Public Bodies\Agenda Packets\06-01-2020\Final\Laserfiche\7.4 sr CHDC Easement Vacation.docx 75 �01 � 751757105 75 0 . 4. ,4P i 757•. { 75-757-1�110 _ II-j 2�5- • ` I +► y 4 4 . 46 .40 75-757-0115 e y 75-757 210 r 770-610 4 41 y k_ 75-757-1i120 ' � � �- 75-002�405 75-01y2-4 75-71]—QOA#] s.l 4 . 7542-4315 1}1S 5-01}2 4340 1,05 CommunityHousingDevelopment Partnership Easement Vacation Case No: EV 20-03 Rive Description of Project Narrative Detailed description/scope of project. As guided in the FAST plan, Community Housing Development Corporation (CHDC) proposes to develop two three-story new construction affordable apartment buildings on the Southeast corner of Twin Lakes Road NW and 175th Ave NW in Elk River in two phases. The apartment buildings will consist of approximately 55 units each with a mix of one, two and three bedroom units and surface and underground parking spaces. Common amenities will likely include storage, roof decks, fitness / physical therapy room, library, community room, patio area, ball court, playground and community garden. Hillside Heights Apartments is an alternative development concept anticipated to serve subsidized households, families and senior active adults. CHDC has had success developing multi -generational housing and has seen positive outcomes including reduced loneliness and increased security and youth enrichment. What is the purpose of the Easement Vacation? What is being proposed? As shown in the attached site plan, CHDC will build a corner of the building in the vacated area, opening up site space and circulation for a second building, site amenities and parking. It is the key that unlocks the site. The vacation makes it possible for the development to accomplish all the planning and zoning objectives for the 1751h Avenue and Twin Lakes Road site in FAST Hillside Heights subarea including: • Density at 26 units/acre. (page 38) • Attractive, activated corner, streetscape and pedestrian connection along Twin Lakes Parkway. (pages 55-57) How is the request consistent with City of Elk River Comprehensive Plan? The vacation is necessary to develop the site that is consistent with the comprehensive plan in the following ways: Provide more housing type choices for the growing number of families in Elk River. "As the percentage of `family households' increased more substantially between 2000 and 2010 than the County and the State." (page 70) Diversify the housing types. "As of 2010, 80% perfect of the housing units in Elk River were owner occupied." and "...it is important for communities to have a mixture of both owner - occupied and renter -occupied units." (page 71) Create 55 units of housing for individuals and families at 50% of the area median income. "In 2010, 40.7% of renters paid over 30% of their household income in rent..." meaning that they are rent burdened. (page 73) Help meet the demand of "the strong need to provide affordable housing for people of all ages." (page 78) Provide stable, affordable senior housing for "the notable increase in apartment rental needs in Elk River by members of the baby boom generation." (page 78) Provide 55 units of affordable housing within a half mile of the Northstar Commuter Rail Station. "Affordable housing is important to a strong economy and a healthy community." (page 79) What has changed to warrant the Easement Vacation? CHDC entered into a purchase agreement for the site in February 2020 with the goal of redeveloping the land as guided in the FAST Plan. It needs site control of the corner in order to apply for the capital funding it needs from the state in July, 2020. CHDC is a developer and owner of affordable multifamily housing. Its mission is to sustain high - quality and affordable homes, to enhance the community over the long term, and to create and maintain healthy living. CHDC owns approximately 44 properties, comprised of more than 3,600 housing units. It takes a unique, businesslike approach to affordable housing by keeping overhead costs small and structuring its properties and operations to be financially self-sustaining over the long term. Founded in 1991, CHDC has provided stability to Minnesota residents and communities for more than 25 years as a developer and owner. How compatible is it with surrounding properties? The proposed apartment building is compatible with the office building to its northwest and with the multifamily developments to its south surrounding the Elk River Northstar Commuter Rail Station. The development's other neighbors are single family homes and open spaces. However, in addition to the compatibilities described in the second section above, the proposed site plan is compatible with the guidance in the Hillside Heights subarea in the FAST Plan including: • Stacked three story residential. (page 38) • A variety of housing options. (page 55) • Innovative stormwater practices (considering permeable paving, rain gardens, underground tanks) and energy generation (considering geothermal, solar ready). (page 59) • Open space connections and views. (pages 41, 46, 55) • Landscape buffers. (pages 41, 46) • Paths and crosswalk to the commuter rail station. (page 40) The DNR must by notified and provide comment if adjacent to water. Not applicable What are the benefits to the City? • Significantly increases the city's tax base —from $4,480 currently to an estimated $40,108. • Increases the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. o The building will employ at least two on -site property management staff with salaries estimated to be around $50,000 each. o The project will create 150 temporary construction jobs at an estimated $51.00 per hour. • Rehabilitates a high profile, priority site as identified in the FAST Plan. • Furthers the housing needs identified in the city's 2018 housing study. CHDC intends to own the development indefinitely. It will be a good neighbor and ensure the development remains a community asset for decades to come. 614 North First Street •.State OO • Kftneapolliis, Kftnesota 554OIl DATE: May 28, 2020 TO: Elk River City Council FROM: Community Housing Development Corporation ("CHDC") RE: Additional Considerations for Traffic Control and Right -of -Way Vacation at Twin Lakes Road and 1751n SITUATION CHDC understands the public works department does not support the proposed right-of-way (RoW) vacation and conveyance request because the area may be needed for a roundabout at the intersection. Effective traffic control remains important, and CHDC offers the following with the goal of finding a collective solution. BACKGROUND INFORMATION To fit into the local context, respond to neighbors' concerns and accomplish the site's land use goals in the Focused Area Study Plan, the building needs to extend into the corner. It is a key that unlocks value for residents and the city including: o Minimizing the building height to three stories. o Activating the streetscape along Twin Lakes Road and making it attractive. o Achieving 26 units per acre density o Offering site amenities and utilizing innovative stormwater practices while providing adequate off-street parking. It is difficult to know how much RoW would be needed for a roundabout because it has not been designed and would be tailored to the Twin Lakes Road and 175t" Avenue intersection. The public works director sent a conceptual layout of a roundabout from a different location, and CHDC's surveyor sited it in the middle of the 1751" & Twin Lakes Road intersection, which is attached for reference. ISSUES TO CONSIDER • Alternative traffic control measures such as stop signs or a stoplight and side street stop signs may be nearly as effective and could be a collective solution. They would also cost less than a roundabout. • Because the new building only extends into part of the corner, it is possible the city would not need that RoW for a roundabout as shown on the attached. It remains impossible to know for sure without an approved roundabout design. The city could site a roundabout further to the north from the center of the intersection, reducing the need for RoW in the requested southeastern corner. According to CHDC's surveyor and title company, the city owns the entire parcel to the north of the corner vacation request, up to the orange dashed line in the attached, which is approximately 150 feet to the north of the proposed RoW vacation line. RIGHT—OF—WAY VACATION EXHIBIT J -„' ITI 1 "'r-^T „' ' `'T�-`' 175TH AVENUE NORTHWEST CENTERLINE F 775TH LINE OF EXISTING ,--NORTH AVENUE-N.W . AND OF TYLER RIGHT-OF-WAY PER DOC. STREET N. W. PER DOC. NO. 'S ,l N0. 'S 597343 & 699754 597343 & 6 9754-----_ 1 R y/ -SOUTH LINE OF EXISTING RIGHT-O�-WAY PER DOC. NO. 'S 597343 & 699754 , L7 L' u- W ti Lli O \ OL W O � J � W ~ ~ -/11 � ITI l IA )Tr-�) -POINT OF 3 n��-, 1 �v�F �h BEGINNING OF `W � O � N RI GH T- OF- WA Y _ 0' VA CA TION AREA - - - W t!) Z o -�5-------------- 474.61 ----------------------- o a --EAST LINE OF EXISTING ill d Y N RIGHT-OF-WAY PER DOC.-, NC 597343 & 699754 LQ co --S W • CORNER OF THE S. W. 114 } OF THE s 114 OF SEC. 2 3 I i IN •� SUMMARY I hereby certify that this survey, plan, or VACATION AREA report was prepared by me or under my 16,338 sq. ft. / 0.3751 acres supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. LEGEND Date: April 28, 2020 ® DENOTES AREA TO BE VACATED FROM 0 100 QUIT CLAIM DEED DOC. NO. 699754 DENOTES AREA TO BE VACATED FROM Christopher A. Terwedo ® WARRANTY DEED DOC. NO. 597343 SCALE IN FEET Minnesota License No. 53536 RIGHT-OF-WAY VACATION EXHIBIT FOR: 1229 Tyler Street NE, Suite 100 Community Housing - MNLMinneapolis, Minnesota 55413 Development Corporation �� PHONE: (612) 466-3300 FAX: (612) 466-3383 SITE LOCATION: 17451 Twin Lakes Road NW Egan, Field £r Nowak(, Inc. WWWE-FNSURVEY.COM Elk River, MN 55330 COPYRIGHT® 2020 By EGAN, FIELD & NOWAK, INC. Land surveyors since 1872 FILE NO. 5028 DRAWING NAME: 39002 RW Vacation - Aerial.dwg SHEET 2 OF 2 RIGHT—OF—WAY VACATION EXHIBIT -„' ITI 11"'�-^T nl '- �) L_F 175TH AVENUE NORTHWEST CENTERLINE OF 775TH LINE OF EXISTING ,--NORTH AVENUE-N.W. . AND OF TYLER / RIGHT-OF-WAY PER DOC. STREET N. W. PER DOC. NO. 'S ,l N0. 'S 597343 & 699754 597343 &` 699754-----_ I \� -SOUTH 44J E OF EXISTING DOC. ,RIGH T WA Y PER AAllAA1IRR ". 597343 & 699754 ,•. U_ '11111l Lli W L, + - t s O � J � W ~ -/11 W ITI l IA Fh)Tr-) -POINT OF �F BEGINNING OF �, N o O W \ - *;4 RI GH T- OF- WA Y Q' VA CATION AREA - - _ - rx -�5-------------- 474.61------------------------ t!) S� Z o o a -4AST LINE OF EXISTING ill d Y N RIGHT-OF-WAY PER DOC. -, NC 597343 & 699754 _I LQ Uj /l r- ^ C-/N 7 LQ --S W • CORNER OF THEi S. W. 114 r n OF' 'THE 5;, 114 OF SEC. 2 3 I / N •� SUMMARY I hereby certify that this survey, plan, or VACATION AREA report was prepared by me or under my 16,338 sq. ft. / 0.3751 acres supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. LEGEND Date: April 28, 2020 ® DENOTES AREA TO BE VACATED FROM 0 100 QUIT CLAIM DEED DOC. NO. 699754 DENOTES AREA TO BE VACATED FROM Christopher A. Terwedo ® WARRANTY DEED DOC. NO. 597343 SCALE IN FEET Minnesota License No. 53536 RIGHT-OF-WAY VACATION EXHIBIT FOR: 1229 Tyler Street NE, Suite 100 Community Housing - MNLMinneapolis, Minnesota 55413 Development Corporation �� PHONE: (612) 466-3300 FAX: (612) 466-3383 SITE LOCATION: 17451 Twin Lakes Road NW Egan, Field £r Nowak(, Inc. WWWE-FNSURVEY.COM Elk River, MN 55330 COPYRIGHT® 2020 By EGAN, FIELD & NOWAK, INC. Land surveyors since 1872 FILE NO. 5028 DRAWING NAME: 39002 RW Vacation - Aerial.dwg SHEET 2 OF 2 VICINITY PLAN n HILLS nYjNGgKFsA y: rae .... .... 4,. a �: 4' K Iraq �* \ t Hillside Heights Apartments ELK RIVER, MN / 05.19.2020 / 20-0009 CONCEPT PLAN 1 Hillside Heights Apartments 01 2�5, 50, 100, ELK RIVER, MN / 05.19.2020 / 20-0009 CONCEPT PLAN 2 F i � Ii LEVEL 1 PLAN I II 11 PRELIMINARY CONCEPT z D IM m M D 0 z 1%0- Rea/ ,PP a R T [K j2PR zaR a aR I jaeR a9R z aR 1 BR 2BR 2BR FE z BR 1 BR zaR zaR i �sROPE ON PHASE, PRASE2 --------------- — — — — — — — — — 11 11 ED 1:1 PROGRAM TO INCLUDE: LOBBY CLUBROOM LEASING OFFICE FITNESS & PHYSICAL THERAPY © BUILDING SERVICE STORAGE Hillside Heights Apartments 01 2�5, 50, 100, '- ELK RIVER, MN / 05.19.2020 / 20-0009 CONCEPT PLAN 3 LEVEL 2 PLAN PRELIMINARY CONCEPT --------- ------------------------- --- - ------- a 9q/ 1BR 3BR 28R j 1BR 38R 20 FLOOR I zs,000 Asa I 38R 25 000 I I I 28R 3 8R 1 BR 8R FM 2BR I I I I 2 8R I I ' I I ::zeR I I ' I I , 1 eR 28R � I I I I MnRnnrf� --- I I PHASE I'PHASE2 I PROGRAM TO INCLUDE: a STORAGE u Hillside Heights Apartments 01 2�5, 50, 100, ELK RIVER, MN / 05.19.2020 / 20-0009 CONCEPT PLAN 4 LEVEL 2 PLAN PRELIMINARY CONCEPT l I lI / � I I I I I I I I I ------------------------------- --- - -------------------- F 9J/ 1RR 3BR 2BR j i 1aR aeR j i � ------------ 1BR 16UNITS /FLOOR 25,000 NSF 2 BR j 3BR 1 3 aR 2 BR 1 BR 2BR 2BR Ffir 2 BR PROGRAM TO INCLUDE: STORAGE LIBRARY ROOF DECK u Hillside Heights Apartments 01 2�5, 50, 100, ELK RIVER, MN / 05.19.2020 / 20 0009 CONCEPT PLAN 5 CORNER PERSPECTIVE PRELIMINARY CONCEPT Hillside Heights Apartments ELK RIVER, MN / 05.19.2020 / 20-0009 PRELIMINARY CONCEPT 6 SOUTHERN APPROACH PRELIMINARY CONCEPT � Hillside Heights Apartments ELK RIVER, MN / 05.19.2020 / 20-0009 PRELIMINARY CONCEPT 7 ENTRANCE DRIVE PRELIMINARY CONCEPT Hillside Heights Apartments ELK RIVER, MN / 05.19.2020 / 20-0009 PRELIMINARY CONCEPT 8 City of Elk River City of Elk River City Council Resolution 20- A Resolution of the City Council of the City of Elk River Expressing Support for the Proposed Use of Tax Increment Financing for a Project By Community Housing Development Corporation WHEREAS, the Housing and Redevelopment Authority in and for the City of Elk River (the "HRA") and the City of Elk River, Minnesota (the "City') have received a request to assist an entity to be formed by Community Housing Development Corporation (the "Developer") with certain costs of construction of an approximately 55 unit multifamily rental housing development in the City of Elk River (the "Project"); and WHEREAS, the City engaged Maxfield Research and Consulting, LLC on February 15, 2018, to conduct a comprehensive housing market study update to our original study completed in December of 2015. The study projects housing demand from 2017-2025 and provides recommendations on the amount and type of housing that could be built in the City to satisfy demand from current and future residents through 2025. The study showed a demand for affordable rental housing in the City; and WHEREAS, a need has been identified for additional affordable housing within the City and that the proposed housing fills a need in the local housing market that currently has an unmet need; and WHEREAS, the success of the tax credit application is predicated on local support of the proposal; and WHEREAS, the Developer has requested that the City indicate its support of the use of tax increment for the Project; and WHEREAS, the Board of Commissioners of the HRA and the Joint Finance Committee have reviewed the proposal and recommend that the City Council support the use of tax increment for the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: The City Council supports the Project and the use of tax increment financing for the Project; provided, however, that authorization of tax increment financing for the Project is solely within the discretion of the City Council following all legally required proceedings pursuant to Minnesota Statues 469.174 through 469.1794, as amended, including but not limited to (i) a public hearing and approval by the City Council of the City; (ii) determining that tax increment financing assistance is necessary for the Project; (iii) verification of development financing need that substantiates that "but for" the use of tax increment financing the Project would be unable to proceed based on an analysis performed by the City's municipal advisor; and (iv) the negotiation of a development agreement addressing (among other things) the conditions under which the City or the HRA will provide financial assistance. 2. The City Council supports the Developer's application to MHFA for tax credits for the Project. The City Council authorizes the Mayor to provide a supplemental letter regarding the use of tax increments if needed in support of the Developer's application for low income housing tax credits. Passed and adopted this 1" day of June 2020. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk i City of • -- 1ver June 1, 2020 Jennifer Ho, Commissioner Minnesota Housing Finance Agency 400 Wabasha St N UNIT 400 St Paul, MN 55102 Re: Housing Tax Credit Threshold Letter — Hillside Heights Apartments Dear Commissioner Ho: The City of Elk River City Council, at its meeting on May 18, 2020, reviewed and preliminarily endorsed Hillside Heights Apartments housing development proposal that proposes the new construction of approximately 55 affordable rental units in the City of Elk River near its Northstar Commuter Rail Station. This endorsement is based upon the findings that the project will meet locally identified housing needs and that the proposed housing is in short supply in the local housing market. This need is evidenced by the following sources: A comprehensive housing market study update completed by Maxfield Research & Consulting for the City of Elk River in February of 2018. The study projects housing demand from 2017 through 2025 and provides recommendations on the amount and type of housing that could be built in Elk River. Below is how this study aligns with the development of Hillside Heights Apartments: a. Hillside Heights Apartments is an alternative development concept containing 55 total units anticipated to serve 12 subsidized households, 27 affordable families and 16 affordable senior active adults. b. The plan shows strong demand for rental housing (55 units) c. The following table summarizes how the development meets the identified needs: Hillside Heights Remaining Demand Apartments Demand Study Reference Page 44 and Table Subsidized 34 12 22 CR-2 Page 44 and Table Affordable 35* 27 8 CR-2 Affordable Senior Active Page 46 and Table Adult 40 16 24 CR-2 *Note: 60-unit Elk Midge Lodge netted out d. The 0% vacancy rates for affordable rental housing and senior housing at all levels indicate a pent-up demand for this type of housing. 13065 Orono Parkway Elk River, MN 55330 Phone: 763.635.1000 www.ElkRiverMN.gov e. Additional demand for Hillside Heights Apartments will also likely come from outside Elk River in the larger submarket area. 2. The 171" Avenue Focused Area Study ("FAST"). The council approved plan outlines short- and long- term development and transportation goals for the 175th Avenue and Twin Lakes Road intersection —the development sitein the FAST Hillside Heights subarea including: a. Density at 26 units/acre. b. A variety of housing options. c. Attractive streetscape and pedestrian connection along Twin Lakes Road. d. Paths and crosswalk to the commuter rail station. The city's current Comprehensive Plan supports the development of Hillside Heights Apartments in the following ways: a. Provides more housing type choices for the growing number of families in Elk River. b. Diversifies the housing types. c. Creates 55 units of housing for individuals and families at 50% of the area median income. d. Helps meet the demand of "the strong need to provide affordable housing for people of all ages." e. Provides stable, affordable senior housing for "the notable increase in apartment rental needs in Elk River by members of the baby boom generation." f. Provides approximately 55 units of housing within a half mile of the Northstar commuter rail station. 4. The market study completed by Market Analyst Professionals in April 2020 concludes sufficient demand for the development, and projects it will be well positioned in the local area. As stated above, The City of Elk River has confirmed that Hillside Heights Apartments contributes to the goals of development in the FAST Plan. The plan identifies specific geographic areas targeted for a variety of housing options including affordable housing and growth in Elk River, and the Hillside Heights Apartments site is in the Hillside Heights district as a priority target area. As part of its endorsement, the city also proposes local financial assistance using tax increment financing. The City of Elk River City Council preliminarily supports the allocation of $780,000 plus interest in tax increment financing for a term of up to 15 years for the Hillside Heights Apartments proposal. This assistance will be in the form of pay-as-you-go tax increment financing. The City Council endorsement is evidenced by the City Council's approval of Resolution 20-xx a copy of which is included with this letter. Sincerely, John J. Dietz Mayor From: Ijaz Osman Sent: Monday, June 01, 2020 11:37 AM To: 'jennifer.wagner@elkrivermn.gov' Subject: Proposed project and other concerns Hi Jennifer, I'm writing in regards to a proposed affordable housing project on 175th and Twin Lake Rd. I have concerns about the project that should be addressed or considered. I trust you will forward this on to the other council members and mayor for review. Thanks for your consideration and taking the time to hear us out. 1. The developer is asking for a $810k TIF. From what I understand, a TIF is intended to stimulate private investment with a blighted area that has been designated to be in need of economic revitalization. Our neighborhood and the surrounding areas are not blighted. In fact, the businesses across the street are beautiful, and the Park Point homes, homes on 175t", and the housing around the train station are well maintained and kept up. With the TIF, you city won't be able to raise taxes on the property, or collect those taxes that will be benefit the city. The city will incur a loss through forgone tax revenue because it will be paid to the developer to pay off the loan for many years to come. With the recent large spike in property taxes this year, residents have zero appetite for more increases or bank rolling private businesses, and it's just not fair that we continue to carry the burden of tax increases in which a TIF property will not help because that money will be used to pay off their loan, especially in one of the worst economic declines not seen in a very long time. In light of the city's hesitation on the highway 12 million dollar ask that the county says is a safety concern, that the nearly million dollar ask by this private developer would demand way more hesitations. I may not understand the TIF fully, but I think you understand what I'm getting at. We don't know if we have the "piggy bank" as Council Member Westgaard had said recently. 2. The apartment design is all black and a designed to be two rectangles, which is unattractive and industrial looking. The city has done a great job of maintaining Twin Lakes by planting trees, attracting nice businesses that maintain their landscape, the sidewalks look nice, the litter is picked up, and it's mowed nicely. It's important to keep that image, and the design of this particular project doesn't seem to fit what the city has been doing for an image. It should be designed to look more residential than like a business. The other two affordable housing buildings nearby and the senior living nearby are all attractive units. This is not attractive at all. 3. A little over 1000 feet away from this proposal are two affordable housing units already. Coachman Ridge and The Depot, each with 53+ units, and now we're adding a third in an area with 55+ units. I question why are we concentrating so many units in one area? Why does this part of Elk River need to be the hub for this kind of housing? These projects should be spread out throughout Elk River and Sherburne county. They should also be built within walking distance or within a third of mile of amenities such as convenience stores and other shops. There are arguments for and against affordable housing, and it's value to the community. While there's no solid evidence either way, there's a potential that it would devalue our homes, especially if there's a high concentration of them in one area. I'm just stating a possible concern here, because we don't know for sure, and so it's a concern for us. 4. It appears that there is a perception by city leaders and developers that placing high density homes or this type of projects near train stations will result in an increase of ridership. Northstar is not like light rail with frequent service to nearby amenities, so it attracts a different kind of rider. I ride the train every day, and I've observed most passengers drive a car and park in the lot. In my observations, I've never seen one person walking to or from their town home or apartment. It makes sense to have housing nearby that will attract those that work downtown and students that attend colleges in or near Downtown Minneapolis and St. Paul. I suggest Elk River do a study of nearby residents to know for sure whether or not residents nearby are using the train rather than promoting this narrative as if it's fact already. We are sad because we and other residents moved out this way to a quiet, country road and environment, and that has changed in the past 20 years. It has become a high traffic, populated, noisy area, and it's sad to see what it's becoming. The amount of vehicles traveling and speeding on Twin Lakes and 175th was going unchecked until recently where we have been working with Sargent Dan Block to take notice and help. Of the 37 times they've patrolled 175th, they've pulled over 13 offenders, with 8 of them given citations and the remaining 5 were given verbal warnings. This is great work, but more work needs to be done to control traffic, limit speeds, and limit noise pollution at that intersection and 175th to make it safe and pleasant for residents/businesses all along 175th and Twin Lakes road. Thank you and please thank the council members and mayor for us. From: Paul and Tracey Landberg <ptlandberg4@gmail.com> Subject: [EXTERNAL] Zoning for apartments in 175th and TLR Date: June 1, 2020 at 4:19:48 PM CDT To: <john.dietz@elkrivermn.gov>, <jennifer.wagner@elkrivermn.gov> Hello Mayor Dietz. I have already sent a message to Jennifer Wagner as well as to Cal Porter in regards to the request for auction of the area of Twin Lakes Rd and 175th regarding the purposed 55 unit apartment complex being build on that space based on the request for auction. I have attached that email below for reference, but now learning last week that CHDC will probably not build if they don't get an $810,000 TIF request granted from the ER City Council. Tax-Increment Financing subsidizes companies by refunding their paid taxes back to the developer to help them pay off their loan. Over $30,000 per year for 25 years will be given back to the developer to pay off their loan. This means they will NOT be contributing to expanding schools, traffic lights for the corner, police & fire, or other government agency support. It will just put an a dditional stress on the taxes we all pay. So if this is the factual information that was shared last week at the Zoom meeting, it further supports my concerns will this being built in the area that is not prepared structurally for it with its street traffic flow, as well as the amount of congestion that will occur once construction work begins on Hwy 10. We as tax payers/home owners are being further burden with additional needs for road improvements and such. We have already been made to hold the tax burden of a new ice arena in the area, which the citizens of Elk River said no to in our vote and the city went ahead and pushed it through anyway. I am paying close to $5,000 in taxes yearly for a home estimated at $300,000. Our curbs in our neighborhood are disintegrating and we are one of the last roads to be plowed when it snows and our sidewalks are even longer, typically two to three days later on most snow falls, Our area landscaping is not taken care of as it is on the other side of Elk River near the golf course, but I should take on more of the tax burden?? This does not make sense to me. PREVIOUS EMAIL OF CONCERN: I am sending a written response to the discussion of the area at Twin Lakes Rd and 175th regarding the purposed 55 unit apartment complex being build on that space based on the request for auction. request for auction We don't want this. We have enough traffic at that intersection already we do not need more. We moved to this part of town because there was less traffic. We would rather see it zoned for a few houses as it is now or with smaller lots for a few additional houses. The area already has too much traffic on it during rush hour times of the day and it is difficult to get out of the neighborhood at times based on much of the traffic going above speed limits. The hill and windy roadway already make it difficult to safely get onto Twin Lakes Road. Adding additional congestion will certainly make this more dangerous and difficult. There is also the pedestrian and bicycle traffic to think about as well. There are students who attend Spectrum schools that walk and ride this area as well as those who do so for the train. We have a number of industrial plants/businesses in the area as well. Adding additional congestion will only make the area more dangerous. We have a lot of commercial industry in the area already so why not keep it that or single housing to keep the area semi rural as it is with the larger lots around. Not a fan. We already have a struggle with speeding on 175th as many see it as a right of way, raceway currently. Twin Lakes Road is terrible in regards to the curves and hills in it for safety while driving, especially during the winter months. It has caused a number of spin outs and crashes, even when the individuals is going under the speed limit based on road condition s. Twin Lakes Road itself is in need of repairs based on pavement bulging and deterioration at the curves. Lastly, there is concern about the rebuild of Hwy 10 and its affects on Twin Lakes Road without the addition of more people and more vehicles and pedestrians on the area. It would be responsible to make sure we have roadways and space to support additional structures before going ahead with the later. A listed benefit for the city is an increase of property taxes on that location from $4,500 a year to an estimated $40,108. If it is approved I would hope the increase in tax revenue would allow our area to be snow plowed in a timely manner as it currently is not and we pay a boat load in property tax. Also, would that allow for additional police patrol through the neighborhood as well as monitoring of 175th based on traffic speed infractions occurring multiple times a day? It seems we already get the short end of the stick in regards to keeping up are green spaces and such in the area of 175th vs that same type of green space in the area of Elk Lake Rd/Proctor. We have deteriorating sidewalks and curbs throughout our neighborhood that the city is not address and in fact some homeowners are repairing themselves at their own cost. It would be good to ask the individuals in these area neighborhoods before just going ahead with the cities own agenda.