2019.07.23 CC Packet - Laserfiche WebLink

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July 9, 2019 Page 4 of 6 Motion by Councilmember Burg, seconded by Councilmember Allen to approve a Resolution Authorizing the Execution of a TIF Assistance Agreement with New Brighton Lease Housing Associates III, LLLP for the 154-unit affordable workforce multi-family rental housing development; to approve a Resolution Authorizing the Execution of a TIF Assistance Agreement with New Brighton Lease Housing Associates III, LLLP for the 204-unit affordable multi-family senior (50+) rental housing development; and, to approve Contracts for private redevelopment with:  New Brighton Lease Housing Associates III, LLLP for the 154-unit affordable workforce rental housing development  New Brighton Lease Housing Associates III, LLLP for the 204-unit affordable senior rental housing development  Pulte Homes of Minnesota LLC for the 53 single family townhomes City Manager Lotter indicated Community Assets and Development Director Schlichting would be presenting this item to the Council. Community Assets and Development Director Schlichting stated over the last several years, the City has acquired the following properties: 581 Old Highway 8, 629 Old Highway 8 and 701 8th Avenue NW. When combined with land previously owned by the City, the new result was approximately 12 acres of land. To determine the appropriate use for the property the City held meetings with more than 12 developers that generated 9 separate proposed concept site plans for the site. After considering the positives and negatives of the various proposals and the backgrounds of the various developers, the City selected Dominium and Pulte as the preferred developers for the land, and they were invited to work towards a unified development plan. Community Assets and Development Director Schlichting explained throughout this development process, the City has considered comprehensive plan feedback, opinions at a neighborhood meeting, public hearing comments, as well as discussion by the Economic Development Commission, the Planning Commission, and ultimately the City Council in providing preliminary approval of a Planned Residential Development and site plan for the Midtown Village development. Once built, the roughly 12 acres of underutilized or vacant land will be transformed into a new housing development consisting of 53 market rate townhomes, and two multi-family buildings providing 204 affordable senior units and 154 affordable workforce units respectively. Community Assets and Development Director Schlichting reported the project will include significant upgrades to the local road and pedestrian systems. Each developer will continue to work on final construction plans as things move forward to independent final plat approvals for both Pulte and Dominium. He commented further on the proposed project, the project timeline and recommended approval of the Resolutions. Scott Landsman, Hoff Berry, discussed the three private development contracts with the Council. He explained the general components of the agreements consist of land use controls, conveyance of land to the redeveloper and construction on the property. He reported two of the agreements were with Dominium and the other was with Pulte. He advised Dominium would be receiving TIF assistance and explained he has been working with TIF Counsel to coordinate these agreements. He explained the City would be responsible for demolishing the building on site prior to the closing date, which was set for September 2, 2019. He summarized the contract highlights further with the Council and recommended approval of the contracts. Councilmember Allen asked if the agreements addressed the parking concerns within the workforce housing apartment complex. Mr. Landsman stated the agreement left the parking concerns open-ended. He explained if the City determined there was a parking concern the developer would have one year to remedy the situation. Jenny Boulton, Kennedy & Graven, explained she worked on the two TIF agreements for the Dominium projects. She reported these TIF agreements cross reference to Mr. Landsman’s development agreements in order to coordinate if there was a default in the construction of the project. She reviewed the terms within the TIF agreements for both the senior and workforce housing projects in detail with the Council. She discussed the timing of the project and noted if development was delayed, tax increments will be generated later in the 15-year payment period so the Developer will receive less increment. She explained if costs are incurred within five years after certification of the TIF Plan, these costs may not be eligible for reimbursement. She Agreements and Approval of Contracts for Private Redevelopment at Midtown Village.