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Home My WebLink About2022-07-11 EDA Meeting Minutes MEETING MINUTES MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY 6:30 P.M. Monday, July 11, 2022 City Hall, Council Chambers A. CALL TO ORDER A meeting of the Maplewood Economic Development Authority (EDA) was held in the City Hall Council Chambers and was called to order at 6:32 p.m. by President Knutson. B. ROLL CALL William Knutson, President Present Marylee Abrams, Commissioner Present Rebecca Cave, Commissioner Present Kathleen Juenemann, Commissioner Present Nikki Villavicencio, Commissioner Present C. APPROVAL OF AGENDA Commissioner Abrams moved to approve the agenda as submitted. Seconded by Commissioner Cave Ayes – All The motion passed. D. APPROVAL OF MINUTES 1. April 11, 2022 Economic Development Authority Meeting Minutes Commissioner Abrams moved to approve the April 11, 2022 Economic Development Authority Meeting Minutes as submitted. Seconded by Commissioner Juenemann Ayes – All The motion passed. E. PUBLIC HEARING None F. UNFINISHED BUSINESS None. G. NEW BUSINESS 1. Support of Affordable Housing Project, JB Vang Partners, 1310 Frost Avenue a. Resolution Supporting Use of Tax Increment Financing b. Letter of Support from EDA President c. Acknowledgment of Receptivity of a Metropolitan Council LCA Funding Award July, 11, 2022 Maplewood Economic Development Authority Minutes 1 Assistant Executive Director Thomson gave the staff report. Commissioner Abrams moved to approve the Resolution Supporting Use of Tax Increment Financing for the JB Vang Partners project at 1310 Frost Avenue. Resolution 22-07-0011 SUPPORTING USE OF TAX INCREMENT FINANCING FOR A RENTAL HOUSING DEVELOPMENT PROJECT WHEREAS, the Maplewood Economic Development Authority (the “EDA”) was created pursuant to the Economic Development Authorities Act, Minnesota Statutes, Sections 469.090 to 469.1080 (the “EDA Act”), and is authorized pursuant to Minnesota Statutes §469.174 to §469.1794 (the “TIF Act”) to use Tax Increment Financing to carry out the public purposes described herein; WHEREAS, the EDA has received a request to provide tax increment financing assistance to JB Vang Partners (or an affiliated entity, the “Developer”) for construction of a 65-unit multifamily workforce rental housing apartment (the “Project”) to be located on approximately 1.58 acres of land at 1310 Frost Avenue East in Maplewood, Minnesota; and WHEREAS, in connection with its application to Minnesota Housing for tax credits for the Project, the Developer has requested that the EDA indicate its support of the use of tax increment financing for the Project. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Maplewood Economic Development Authority (the “Board”) as follows: The EDA supports the use of tax increment financing for the Project in an amount not to exceed $623,000 payable over approximately 15 years; provided, however, that authorization of tax increment financing for the Project is solely within the discretion of the City Council after satisfaction of all conditions required pursuant to the EDA Act and the TIF Act, including without limitation, (i) a public hearing; (ii) determining that tax increment financing assistance is necessary for the Project; and (iii) verification of development financing need that substantiates that “but for” the use of tax increment financing the Project would be unable to proceed. Seconded by Commissioner Cave Ayes – All The motion passed. Commissioner Cave moved to approve a Letter of Support from EDA President for the JB Vang Partners project at 1310 Frost Avenue. Seconded by Commissioner Abrams Ayes – All The motion passed. Commissioner Juenemann moved to approve the Acknowledgement of Receptivity of the July, 11, 2022 Maplewood Economic Development Authority Minutes 2 Metropolitan Council LCA Funding Award for the JB Vang Partners project at 1310 Frost Avenue. Seconded by Commissioner Abrams Ayes – All The motion passed. 2. Support of Affordable Housing Project, Beacon Interfaith Housing Collaborative, 1375 Frost Avenue a. Resolution Supporting Use of Tax Increment Financing b. Letter of Support from EDA President c. Acknowledgment of Receptivity of a Metropolitan Council LCA Funding Award d. Resolution Identifying the Need For Livable Communities Demonstration Account Funding and Authorizing Application for Grant Funds Assistant Executive Director Thomson gave the staff report. Commissioner Abrams moved to approve the Resolution Supporting Use of Tax Increment Financing for the Beacon Interfaith Housing Collaborative project at 1375 Frost Avenue. Resolution 22-07-0012 SUPPORTING USE OF TAX INCREMENT FINANCING FOR A RENTAL HOUSING DEVELOPMENT PROJECT WHEREAS, the Maplewood Economic Development Authority (the “EDA”) was created pursuant to the Economic Development Authorities Act, Minnesota Statutes, Sections 469.090 to 469.1080 (the “EDA Act”), and is authorized pursuant to Minnesota Statutes §469.174 to §469.1794 (the “TIF Act”) to use Tax Increment Financing to carry out the public purposes described herein; WHEREAS, the EDA has received a request to provide tax increment financing assistance to Beacon Interfaith (or an affiliated entity, the “Developer”) for construction of a 40-unit multifamily affordable rental housing apartment (the “Project”) to be located on approximately 1.03 acres of land at 1375 Frost Avenue East in Maplewood, Minnesota; and WHEREAS, in connection with its application to Minnesota Housing for tax credits for the Project, the Developer has requested that the EDA indicate its support of the use of tax increment financing for the Project. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Maplewood Economic Development Authority (the “Board”) as follows: The EDA supports the use of tax increment financing for the Project in an amount not to exceed $426,596 payable over approximately 15 years; provided, however, that authorization of tax increment financing for the Project is solely within the discretion of the City Council after satisfaction of all conditions required pursuant to the EDA Act and the July, 11, 2022 Maplewood Economic Development Authority Minutes 3 TIF Act, including without limitation, (i) a public hearing; (ii) determining that tax increment financing assistance is necessary for the Project; and (iii) verification of development financing need that substantiates that “but for” the use of tax increment financing the Project would be unable to proceed. Seconded by Commissioner Juenemann Ayes – All The motion passed. Commissioner Cave moved to approve a Letter of Support from EDA President for the Beacon Interfaith Housing Collaborative project at 1375 Frost Avenue. Seconded by Commissioner Abrams Ayes – All The motion passed. Commissioner Abrams moved to approve the Acknowledgement of Receptivity of the Beacon Interfaith Housing Collaborative project at 1375 Frost Avenue. Seconded by Commissioner Villavicencio Ayes – All The motion passed. Commissioner Juenemann moved to approve the Resolution Supporting an Application to be Submitted for a Livable Communities Demonstration Account grant for the Beacon Interfaith Housing Collaborative project at 1375 Frost Avenue. Resolution 22-07-0013 RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT FUNDING AND AUTHORIZING APPLICATION FOR GRANT FUNDS FOR GLADSTONE CROSSING WHEREAS, the City of Maplewood is a participant in the Livable Communities Act's Local Housing Incentives Account Program for 2022 as determined by the Metropolitan Council, and is, therefore, eligible to apply for Livable Communities Demonstration Account funds; and WHEREAS, the Maplewood Economic Development Authority has identified a proposed project within the City to be developed by Beacon Interfaith Housing Collaborative that meets the Demonstration Account's purposes and criteria and is consistent with and promotes the purposes of the Metropolitan Livable Communities Act and the policies of the Metropolitan Council's adopted metropolitan development guide; and WHEREAS, Beacon Interfaith Housing Collaborative has requested that the Maplewood Economic Development Authority sponsor an application for Livable Communities Demonstration Account funds for its Gladstone Crossing project in the City of Maplewood; and July, 11, 2022 Maplewood Economic Development Authority Minutes 4 WHEREAS, the Maplewood Economic Development Authority has the institutional, managerial and financial capability to ensure adequate project grant administration; and WHEREAS, the Maplewood Economic Development Authority certifies that it will comply with all applicable laws and regulations as stated in the grant agreement; and WHEREAS, the Maplewood Economic Development Authority agrees to act as legal sponsor for the project contained in the grant application submitted on or before August 15, 2022; and WHEREAS, the Maplewood Economic Development Authority acknowledges Livable Communities Demonstration Account grants are intended to fund projects or project components that can serve as models, examples or prototypes for development or redevelopment projects elsewhere in the region, and therefore represents that the proposed project(s) or key components of the proposed project(s) can be replicated in other metropolitan-area communities; and WHEREAS, only a limited amount of grant funding is available through the Metropolitan Council's Livable Communities Demonstration Account during each funding cycle and the Metropolitan Council has determined it is appropriate to allocate those scarce grant funds only to eligible projects that would not occur without the availability of Demonstration Account grant funding. NOW, THEREFORE BE IT RESOLVED, that, after appropriate examination and due consideration, the Maplewood Economic Development Authority: G2, Attachment 6 1. Finds that it is in the best interests of the City's development goals and priorities for the proposed project to occur at this particular site and at this particular time. 2. Finds that the project components for which Livable Communities Demonstration Account funding is sought: a. will not occur solely through private or other public investment within the reasonably foreseeable future; and b. will occur within three years after a grant award only if Livable Communities Demonstration Account funding is made available for this project at this time. 3. Represents that Beacon Interfaith Housing Collaborative has undertaken reasonable and good faith efforts to procure funding for the project components for which Livable Communities Demonstration Account funding is sought but was not able to find or secure from other sources funding that is necessary for project component completion within three years. 4. Authorizes its Executive Director to submit on behalf of the Maplewood Economic Development Authority and Beacon Interfaith Housing Collaborative an application for Metropolitan Council Livable Communities Demonstration Account grant funds for the project component(s) identified in the application, and to July, 11, 2022 Maplewood Economic Development Authority Minutes 5 execute such agreements as may be necessary to implement the project on behalf of the Maplewood Economic Development Authority. Seconded by Commissioner Abrams Ayes – All The motion passed. H. ADJOURNMENT President Knutson adjourned the meeting at 6:56 p.m. Andrea Sindt, City Clerk July, 11, 2022 Maplewood Economic Development Authority Minutes 6