2018.05.23 EDC Minutes SIGNED - Laserfiche WebLink

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VI. Korean Church Redevelopment Concent Proposals Gundlach reported the purpose of the special meeting is to engage in a second step in regards to evaluating the Korean Church redevelopment concept proposals and forwarding a recommendation to the City Council on how to proceed in establishing a redevelopment partner. Fortunately, the City received nine viable concept proposals, but unfortunately, the choice has proven difficult with regard to narrowing focus and attempting to move forward. Gundlach commented in an effort to narrow focus, the Commission was asked to rank their preferences for housing product type and other project criteria at the May 2nd meeting. This exercise was aimed to focus on the end redevelopment outcomes Commission members desired. With regard to Housing Product Type, the ranking exercise revealed the following top -three housing product types: • An affordable housing product for families, • An affordable housing product for 55+/senior, and • An owner -occupied product, preferably townhomes over single family. Gundlach stated the second aspect to the ranking exercise was to evaluate the various other project criteria that help further distinguish one concept proposal from the next. This ranking exercise revealed at least two priorities: • Accomplishing the Council's goals identified at the January teambuilding retreat, and • Providing the lowest amount of TIF assistance. Gundlach reported the next four highest ranking goals are close in score. High market values, tax capacity, overall tax increment generation, recouping the City's initial investment, and purchase price are all weighted fairly equally, along with selecting a redeveloper who can master develop the entire site. Ranking these goals helped narrow focus further because: • The Council's teambuilding goals align very well with an affordable family and senior preferred product type, coupled with a lower density owner -occupied product, such as townhomes, meeting the goals of affordability, 55+/senior, mixed -income, and varying densities. ■ To keep TIF assistance to a minimum, we can automatically rule out a market -rate rental project based on the amount of subsidy those projects demand. • To achieve some of the finance related goals, we can further eliminate a single-family home product because the unit count isn't high enough to garner enough market value, tax capacity, or land sale proceeds. Gundlach stated lastly, staff would offer the final summary comments regarding the concept proposals received: Relying on 9% tax credit awards for an affordable family project could impact the timeframe we'd like to achieve because these credits are very competitive and our site likely wouldn't score very well. Selecting a proposal where the developer isn't committing to building all of the product themselves could impact the City's control over quality. Familiarity of the redeveloper and their knowledge of the New Brighton market will help with the community engagement phase of the project.