2021.10.26 CC Packet - Laserfiche WebLink

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October 12,2021 Page 8 of 9 City Manager Massopust explained the City has demonstrated great success in utilizing Tax Increment Authorizing the Execution oFinancing over the years to acquire and redevelop properties throughout the community for the A Agreemenntt a anndd ree nce Approving present and future benefit of all residents. The latest opportunity, the former US Bank site Amendment toTlFPlanat and surrounding lands, became available in early 2021, and is now set for redevelopment in the 2299PaImerDrive. near future. Establishment of TIF District 35 and its inclusion into Development District#1 would address a financing gap to allow the development to happen, and would facilitate reimbursement of expenses to date. He noted Michael Huet from Baker Tilly and Jenny Bolton from Kennedy& Graven were in attendance. Michaela Huet, Baker Tilly, discussed the proposed TIF agreement in further detail with the Council. She reported this development would include 132-units and 10% of the units would be affordable at 60%AMI over the life of the district. The projected revenues for the project were discussed and it was noted the TIF district would be in place for 26 years. She commented further on the fundaments of TIF and pooling and explained this project would be financed through a pay-as-you-go note. She described the development costs that could and could not be covered by TIF and recommended approval of the TIF Assistant Agreement and TIF Plan Administrative Amendment. Jenny Bolton, Kennedy& Graven, commented on the TIF assistance agreement noting the developer would have to report on the affordable units for the next 26 years in order to receive the annual increment payments. She noted the EDC recommended having provisions in place to ensure the affordable units were not concentrated and that they be different unit sizes. Mayor Niedfeldt-Thomas asked if the affordable unit report is typically submitted prior to payment. Ms. Bolton explained the report is based on the prior year and covers a one year period. Councilmember Axberg questioned how the 4%interest rate was set and who was making this payment.Ms. Huet reported this was a payment from the City to the developer with interest at 4%. Mayor Niedfeldt-Thomas discussed the pooling that would occur and noted this could be used in all of New Brighton not just TIF District No.35. Ms.Huet reported this was the case. Councilmember Axberg commented the EDC voted to unanimously support this TIF assistance noting the only concern that was raised was with the fact underground parking should not be deemed an extraordinary expense. Motion by Councilmember Abdulle,seconded by Councilmember Dunsworth to adopt a Resolution authorizing the Execution of a TIF Assistance Agreement with 2299 Palmer LLC for 132 unit Multi- Family rental housing facility. 5 Ayes,0 Nays-Motion Carried Motion by Councilmember Abdulle,seconded by Councilmember Dunsworth to approve TIF Plan Administrative Amendment. 5 Ayes,0 Nays-Motion Carried Commission Liaison Reports, Announcements and Updates Commission Liaison Reports, Devin Massopust Announcements and City Manager Massopust reported on Wednesday, October 13 from 4:30 p.m. to 6:30 p.m. staff Updates and consultants would be taking feedback from the public on the Silver Lake Road corridor planning process at the New Brighton Community Center in Room 220. Graeme Allen Councilmember Allen reported the Public Safety Commission met on Monday, October 11 where the group discussed a potential unmanned aerial vehicle/drone program. He noted the