5.3.A. & 5.3.B. SR 09-21-2009REQUEST FOR ACTION
To Item Number
Ci Council 5.3.A.
Agenda Section Meeting Date Prepared by
Community Development September 21, 2009 Catherine Mehelich, Director of
Economic Develo ment
Item Description Reviewed by
Consider Resolution of Support for Duffy Development Lori ohnson, Ci Administrator
Company's Affordable Housing Tax Credit(s) Application to Reviewed by
MN Housing Finance Agency
Action Requested
1) Consider Resolution in Support of Elk River Station Apartments Concept and Housing Tax Credit
Application
2) Consider Resolution of Receptivity to a Department of Employment & Economic Development
(DEED) Small Cities Development Program (SCDP) Award
Background/Discussion
At its September 14, 2009 worksession the City Council reviewed the development concept and request
for fee waivers for Elk River Station Apartments. In summary, Duffy Development Company is
submitting application for Housing Tax Credits from MN Housing Finance Agency (MHFA) for the
proposed 53-unit apartment building.
The developer's submittal to MHFA and DEED require resolutions of city support. The attached
resolutions have been provided by the developer for the Council's consideration. Staff understands the
Council may not be interested in all of the requests for city support, as indicated at the September 14
worksession; therefore, the Council may choose to amend the resolutions as desired.
Financial Impact
Four of the items of city support are covered under the PUD agreement, and two of the items request
forms of financial assistance, specifically:
• A 5% reduction of local government fees in the amount of $25,000
• A 1-year deferral of SAC/WAC fees (equal to a project savings of $7,732)
Attachments
• Resolution 09-_ in Support of Elk River Station Apartments Concept and Housing Tax Credit
Application
• Resolution 09-_ Receptivity to a Department of Employment & Economic Development
(DEED) Small Cities Development Program (SCDP) Award
Action Motion by Second by Vote
Follow Up
S:\EDA\HRA\HOUSING\Duffy Development 2009\9.21.09 Action Requested.ERStation.doc
RESOLUTION 09-
A RESOLUTION OF THE CITY OF ELK RNER
A RESOLUTION IN SUPPORT OF ELK RIVER STATION APARTMENTS
CONCEPT AND HOUSING TAX CREDIT APPLICATION
WHEREAS, Duffy Development Company has approached the City of Elk River
regarding a proposal to develop affordable housing near the Northstar Commuter Rail
Station; and
WHEREAS, the City of Elk River is committed through policy statements in its
Comprehensive Plan, to encourage a mixture of housing opportunities in terms of costs and
size while encouraging a high degree of architectural and site planning integrity; and
WHEREAS, Duffy Development Company's market study has identified a need for
affordable housing and such housing is in short supply in the local housing market; and
WHEREAS, Duffy Development Company's market study indicates a percentage of mass
transit users are individuals who live in affordable housing; and
WHEREAS, the site Duffy Development Company is interested in developing, Outlot D,
Elk River Station, is located within a walkable distance from the train station; and
WHEREAS, the Outlot is zoned PUD (Planned Unit Development) which allows a 60-
unit apartment building; and
WHEREAS, Duffy Development Company is committed to constructing the
development in compliance with the Minnesota Overlay to the Green Communities Criteria
for smart growth, public health, energy conservation, operational savings and sustainable
building practices; and
WHEREAS, Duffy Development Company is seeking support from the City of Elk River
in the following methods/areas for the benefit of its Section 42 Tax Credit application which
is to be submitted to Minnesota Housing Finance Agency:
Donation or avaiver of local government development fees
Reduction of infrastructure costs
Density bonus
S:\EDA\HRA\HOUSING\Duffy Development 2009\Resolution of City Support.doc
Flexibility in honing code requirements
1~AC/SAC reductions
Fast-track permitting and approval
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River that
it hereby approves this Resolution in Support of the Elk River Station
Apartments Concept and Housing Tax Credit Application to the Minnesota
Housing Finance Agency (MHFA) in the following manner:
Donation or waiver of localgovernmentfees - A credit equal to 5% of total fees
(equal to $25,000)
Keduction of infrastructure costs -The City is allowing a reduction in the number
of parking stalls that the code requires.
Density bonus -The City zoning code allows fox only 38 units/buildable acre.
Through the PUD process, a total of 60-units is allowed.
Flexibility in honing code requirements -The project has been rezoned from single
family to multi-family through the PUD process.
LVAC/SAC reductions- Utilizing an escrow arrangement fora 1-year deferral
on payment of WAC/SAC fees.
Fast-track permitting and approval -Staff is working with Duffy Development to
expedite the review and approval of the proposed development.
Passed and adopted this 215` day of September 2009.
Stephanie Klinzing, Mayor
ATTEST:
Tina Allard, City Clerk
S:\EDA\HRA\HOUSING\Duffy Development 2009\Resolution of City Support.doc
RESOLUTION 09-
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION OF RECEPTIVITY TO A DEPARTMENT OF
EMPLOYMENT AND ECONOMIC DEVELOPMENT SMALL CITIES
DEVELOPMENT PROGRAM AWARD
BE IT RESOLVED that the City of Elk River act as the legal sponsor for the project
contained in the application to be submitted, and that the Mayor and City Administrator of
the City of Elk River, Minnesota are hereby authorized to apply to the Department of
Employment and Economic Development for funding of this project on behalf of the Ciry
of Elk River.
BE IT FURTHER RESOLVED that the Ciry of Elk River and Duffy Development
Company will enter into a cooperative development and "pass through" grant agreement fox
the development of Elk River Station Apartments (the "Project").
BE IT FURTHER RESOLVED that the Ciry of Elk River has the legal authority to apply
for financial assistance and the institutional, managerial, and financial capability to ensure
adequate construction, operation, maintenance, and replacement of the proposed Project for
its design life.
BE IT FURTHER RESOLVED that the City of Elk River has not violated any Federal,
State, or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of
interest, or other unlawful or corrupt practice.
BE IT FURTHER RESOLVED that upon approval of its application by the State of
Minnesota, the City of Elk River may enter into an agreement with the State of Minnesota
for the approved Project, and that the City of Elk River certifies that it will comply with all
applicable laws and regulations as stated in all contract agreements.
NOW, THEREFORE, BE IT RESOLVED by the Ciry Council of the Ciry of Elk
River, Minnesota that the Mayor and City Administrator of the City of Elk
River, or their successors in office, are hereby authorized to execute such
agreements, and amendments thereto, as are necessary to implement the
Project on behalf of the City of Elk River.
Passed and adopted this 215` day of September 2009.
ATTEST:
Stephanie Klinzing, Mayor
Tina Allard, City Clerk
S:\EDA\HRA\HOUSING\Duffy Development 2009\Resolution for DEED.SCDP Award.doc