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HomeMy WebLinkAbout2022-07-11 EDA PacketAGENDA MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY 6:30 P.M. Monday, July 11, 2022 City Hall, Council Chambers A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. APPROVAL OF MINUTES 1. April 11, 2022 Economic Development Authority Meeting Minutes 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 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 H. ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at the Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone's opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens - unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other's time keeping remarks brief, to the point and non -repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK D1 A. MEETING MINUTES MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY 5:00 P.M. Monday, April 11, 2022 City Hall, Council Chambers 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 5:00 p.m. by President Knutson. B. ROLL CALL C 7 E F William Knutson, President Present Marylee Abrams, Commissioner Present Rebecca Cave, Commissioner Present Kathleen Juenemann, Commissioner Present Nikki Villavicencio, Commissioner Present APPROVAL OF AGENDA Commissioner Abrams moved to approve the agenda as submitted. Seconded by Commissioner Cave Ayes — All The motion passed. APPROVAL OF MINUTES 1. January 10, 2022 Economic Development Authority Meeting Minutes Commissioner Juenemann moved to approve the January 10, 2022 Economic Development Authority Meeting Minutes as submitted. Seconded by Commissioner Abrams Ayes — All The motion passed. PUBLIC HEARING None UNFINISHED BUSINESS 1. Resolution Approving YMCA ARPA Grant Agreement Assistant Treasurer Paulseth gave the staff report. Commissioner Abrams moved to adopt the Resolution Approving the YMCA ARPA Grant Agreement. Resolution 22-04-0010 RESOLUTION APPROVING YMCA ARPA GRANT AGREEMENT April 11, 2022 Maplewood Economic Development Authority Minutes 1 EDA Packet Page Number 1 of 19 D1 WHEREAS, on September 13, 2021, the Maplewood City Council allocated $350,000 in American Rescue Plan Act (ARPA) funding to the Maplewood Economic Development Authority (EDA) for the purpose of providing reimbursement to nonprofit entities that experienced negative economic impacts as a result of the Covid-19 pandemic. NOW, THEREFORE BE IT RESOLVED that the Maplewood Economic Development Authority (EDA) approves the grant agreement with the YMCA of the Greater Twin Cities (YMCA), dated April 11, 2022, which provides a $350,000 grant to the YMCA to assist with negative economic impacts incurred during the Covid-19 pandemic from the period of April 11, 2022 through December 31, 2022. Seconded by Commissioner Juenemann Ayes — All The motion passed. 2. EDA Financial Report Assistant Treasurer Paulseth gave the staff report. No Action Required. G. NEW BUSINESS 1. Update on 1946 English Street— Former Maplewood Moose Lodge Property Assistant Executive Director Thomson gave the presentation. Executive Director Coleman and Assistant Executive Director Thomson answered questions of the commission. EDA Attorney Batty provided additional information. No Action Required. H. ADJOURNMENT President Knutson adjourned the meeting at 5:42 p.m. April 11, 2022 Maplewood Economic Development Authority Minutes 2 EDA Packet Page Number 2 of 19 G1 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date July 11, 2022 REPORT TO: Melinda Coleman, Executive Director REPORT FROM: Michael Martin, AICP, Assistant Community Development Director PRESENTER: Jeff Thomson, Assistant Executive Director AGENDA ITEM: 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 Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing Form of Action: ✓ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation Policy Issue: Staff has been working with the developer JB Vang Partners on a development project at 1310 Frost Avenue. The developer is pursuing funding via Housing Tax Credits from the Minnesota Housing Finance Agency. As part of the Minnesota Housing Finance Agency's application process, a resolution of support for the use of tax increment financing and a letter from the President of the Economic Development Authority (EDA) is required to be submitted. This funding source also includes dollars from the Metropolitan Council. The Metropolitan Council can only provide funding to other units of government. Because of this, the EDA is required to submit a form committing that any funding awarded to this project will be made available to the developer. The EDA is being asked to approve a resolution supporting the use of tax increment financing, a letter of support from the EDA President, and the Acknowledgment of Receptivity of a Metropolitan Council LCA Funding Award form. Recommended Action: a. Motion to approve the Resolution Supporting Use of Tax Increment Financing for the JB Vang Partners project at 1310 Frost Avenue. b. Motion to approve a Letter of Support from EDA President for the JB Vang Partners project at 1310 Frost Avenue. c. Motion to approve the Acknowledgement of Receptivity of the Metropolitan Council LCA Funding Award for the JB Vang Partners project at 1310 Frost Avenue. Fiscal Impact: Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0 Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source EDA Packet Page Number 3 of 19 G1 ❑ Use of Reserves ✓ Other: This action is only signifying support of the potential project. The financial impacts of these projects will be analyzed and considered by the City Council at a later date. Strategic Plan Relevance: ❑ Community Inclusiveness ✓ Financial & Asset Mgmt ❑ Environmental Stewardship ❑ Integrated Communication ❑ Operational Effectiveness ✓ Targeted Redevelopment The city's 2040 Comprehensive Plan establishes the goal to "Improve the availability of affordable housing for both homeowners and renters" and identified an action item to "Partner with Metropolitan Council and other agencies and programs to provide funding assistance (to developers, and also to those in need of housing) to provide for affordable housing units in the community. " Background: JB Vang Partners is working to construct 65 affordable housing units in a four-story building built at 1310 Frost Avenue. The 65 units would consist of 1,2,3 and 4-bedroom units affordable to households at or below 30 percent, 50 percent, and 60 percent of the area median income. The development is proposed to start in 2023 and will cost approximately $24.2 million. This property is guided by the city's 2040 Comprehensive Plan as Mixed Use Neighborhood High Density which encourages multi -family residential uses. JB Vang Partners has identified a funding gap in their proposed projects — which is common for affordable housing developments — and is working to secure funding via Housing Tax Credits from the Minnesota Housing Finance Agency. They have also indicated that they would request tax increment financing from the city. See the attached memo from Ehler's — the city's financial consultant — on the requested tax increment financing amounts. Staff wants to emphasize that approval of the attached resolution, letter, and Metropolitan Council form does not bind the city or EDA to any financial agreement. All projects are mandated to submit the required financial and land use applications, which would then go through a full public review process. This will include negotiating the appropriate level of public funding if any, the EDA deems necessary to contribute to the project. Attachments: 1. Location Map 2. Ehlers Memo 3. Resolution Supporting Use of Tax Increment Financing 4. Letter of Support from EDA President 5. Acknowledgment of Receptivity of a Metropolitan Council LCA Funding Award EDA Packet Page Number 4 of 19 1310 Frost Avenue - Location Map G1, Attachment 1 W V—*' M City of Maplewood June 29, 2022 Maplewood EDA Packet Page Number 5 of 19 G1, Attachment 2 Sk %EHLERS W PUBLIC FINANCE ADVISQRs MEMORANDUM TO: Jeff Thomson - Community Development Director Michael Martin - Assistant Community Development Director FROM: Jason Aarsvold & Keith Dahl - Ehlers DATE: June 29, 2022 SUBJECT: JB Vang Project - Resolution of TIF Support In June of 2021, the City of Maplewood passed a resolution of support to provide TIF for JB Vang Partners' 75-unit affordable apartment project. This assistance included pay-as-you-go tax increment financing (TIF) in the amount of $1,036,000 over an anticipated term of 15 years. The project was unable to secure low income housing tax credits (LIHTC) in the 2021 round of funding but will apply again in 2022. For this application, the project size is reduced to 65 units, and the developer is again requesting assistance from the City. The request for financial assistance today remains the same as it was in 2021 but is adjusted per our analysis to account for a reduction in units, and changes to the state's affordable housing tax classification rate. Minnesota Housing annually reviews applications through a competitive scoring process and applicants must meet certain priorities and requirements established for the LIHTC program. In the capital contribution section of the application, projects can benefit from demonstrating a partnership with a local unit of government. Based on current parameters, the JB Vang project will score more points in this section with tax increment financing (TIF) assistance from the City and increase their likelihood of receiving tax credits. If a local unit of government elects to support a project financially, a resolution of financial support is required for these points to be claimed in the scoring process. JB Vang Partners Project Overview: JB Vang Partners requested TIF assistance in the amount of $1.036 million to construct a 65-unit affordable apartment consisting of 1, 2, 3 and 4-bedroom units with units affordable to households at or below 30%, 50% and 60% of the area median income (AMI). The development is proposed to start in 2023 and cost approximately $24.2 million, or $372,621 per unit. Based upon our review, the requested TIF assistance is more than what is necessary for this project to become "financially feasible". We have concluded that TIF assistance in an amount not to exceed $623,000 is supportable for this project. This reduced amount of TIF still requires an estimated 15 years for repayment because there are fewer units than in 2021 and the project's overall projected property taxes and, therefore, potential TIF are reduced based on reductions to the affordable housing tax classification. This reduction in taxes allows the developer to secure more private funding to make up for the reduction in the total TIF amount. Please contact Jason Aarsvold or Keith Dahl at 651-697-8500 with any questions. I3�1��.��.�e .. �W►�u�r��r�WIFIF :Ar>•I.nmia EDA Packet Page Number 6 of 19 infoaehlers-&c.com ` 1 (800) 552-1171 www.ehlers-inc.com G1, Attachment 3 THE MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF MAPLEWOOD RESOLUTION NO. 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. The foregoing resolution was introduced by Commissioner and duly seconded by Commissioner . The following Commissioners voted in favor of the resolution: . The following Commissioners voted against the resolution: . The following Commissioners were absent: . Whereupon the resolution was adopted. ADOPTED: July 11, 2022 President Executive Director EDA Packet Page Number 7 of 19 G1, Attachment 4 July 11, 2022 Minnesota Housing Finance Agency 400 Wabasha Street North, Suite 400 Saint Paul, MN 55102 RE: Letter of Support for JB Vang Partners The Maplewood Economic Development Authority is supportive of JB Vang Partners' application for Minnesota Housing Tax Credits to construct a 65-unit apartment building for affordable housing. The City intends to process an application for a Tax Increment Financing district supporting the Project, including a 15-year TIF Note in an amount up to $623,000 in principal to address a funding gap for the Project. Housing is an integral component to our City's landscape. It is important to the Maplewood Economic Development Authority that a range of housing options be available to meet the needs of individuals and families throughout their lives, such as single-family detached homes, townhomes, condominiums, apartments and senior housing. An important component in providing that cross- section of housing options is the availability of affordable housing. This includes consideration of the cost of housing relative to the wages of those working in and around Maplewood. The cost and also the availability of housing, specifically rental, is an increasing concern throughout the Metropolitan region including here in Maplewood. The lack of and the rising costs of housing is negatively impacting our local businesses, both new and existing. Local business leaders have identified a lack of rental and affordable housing and indicate that such housing is a benefit to the City, to their ability to attract and retain employees, and for those employees themselves. With the substantial employment increase Maplewood has already experienced and will continue to experience, affordable housing for workers is an important priority for the City. As JB Vang Partners moves through the city's formal TIF approval process and determination of the final amount of any assistance, the project will be required to complete the required public hearings and meet all state guidelines for TIF, including the "but for test". The Maplewood Economic Development Authority believes JB Vang Partners' project is an excellent opportunity to help meet some of the housing needs in our community that are currently being underserved. In turn, we need development partners such as Minnesota Housing to assist us with our business and community housing needs. We encourage you to fund this needed project for our community. Sincerely, Bill Knutson President of the Maplewood Economic Development Authority EDA Packet Page Number 8 of 19 G1, Attachment 5 ACKNOWLEDGEMENT OF RECEPTIVITY TO A METROPOLITAN COUNCIL LCA FUNDING AWARD As a participant in the Metropolitan Council's Livable Communities Local Housing Incentives Account program, the City of Maplewood (name of city, county or development authority) supports the affordable and life -cycle objectives of the Livable Communities Act (LCA). Accordingly, it will accept and make available in a timely manner to Request for Proposal (RFP) applicant, JB Vang Partners , any LCA award to the city, county or development authority to assist the housing program or activity proposed in this application, if such an award is made, and to provide matching funds as required by state statute. By: (Authorized City Official) PROPOSED PROJECT INFORMATION (Required for grant contracting purposes) Gladstone Village Project Name Street boundaries or major intersections: PROJECT INFORMATION 1310 Frost Avenue Project Address Maplewood Project City PROJECT CONTACT INFORMATION Justin Fincher 1335 Pierce Butler Route Saint Paul 55104 Contact Name Address City Zipcode 651-294-3516 jjfincher@jbvang.com Phone Number Fax Number E-mail address CITY CONTACT INFORMATION Michael Martin, Assistant Community Development Director 651-249-2303 michael.martin@maplewoodmn. Contact Name Title Phone E-mail Address AUTHORIZED CITY, COUNTY OR DEVELOPMENT AUTHORITY OFFICIAL(S) CONTACT INFORMATION Melinda Coleman Executive Director 651-249-2055 melinda.coleman@maplewoodn Name Title Phone E-mail Address v .gov EDA Packet Page Number 9 of 19 G2 MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY STAFF REPORT Meeting Date July 11, 2022 REPORT TO: Melinda Coleman, Executive Director REPORT FROM: Michael Martin, AICP, Assistant Community Development Director PRESENTER: Jeff Thomson, Assistant Executive Director AGENDA ITEM: 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 Action Requested: ✓ Motion ❑ Discussion ❑ Public Hearing Form of Action: ✓ Resolution ❑ Ordinance ❑ Contract/Agreement ❑ Proclamation Policy Issue: Staff has been working with Beacon Interfaith Housing Collaborative on a project at 1375 Frost Avenue. The developer is pursuing funding via Housing Tax Credits from the Minnesota Housing Finance Agency. As part of the Minnesota Housing Finance Agency's application process, a resolution of support for the use of tax increment financing and a letter from the President of the Economic Development Authority (EDA) is required to be submitted. This funding source also includes dollars from the Metropolitan Council. The Metropolitan Council can only provide funding to other units of government. Because of this, the EDA is required to submit a form committing that any funding awarded to this project will be made available to the developer. The developer is also seeking grant funding via the Metropolitan Council's Livable Communities Demonstration Account funds. This fund also can only be awarded directly to cities, so the EDA is being asked to identify the need for funding and authorize an application to be submitted. In total, the EDA is being asked to approve a resolution supporting the use of tax increment financing, a letter of support from the EDA President, the Acknowledgment of Receptivity of a Metropolitan Council LCA Funding Award form, and a resolution supporting an application to be submitted for a Livable Communities Demonstration Account grant. Recommended Action: a. Motion to approve the Resolution Supporting Use of Tax Increment Financing for the Beacon Interfaith Housing Collaborative project at 1375 Frost Avenue. b. Motion to approve a Letter of Support from EDA President for the Beacon Interfaith Housing Collaborative project at 1375 Frost Avenue. EDA Packet Page Number 10 of 19 G2 c. Motion to approve an Acknowledgement of Receptivity of the Metropolitan Council LCA Funding Award for the Beacon Interfaith Housing Collaborative project at 1375 Frost Avenue. d. Motion to approve a 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. Fiscal Impact: Is There a Fiscal Impact? ✓ No ❑ Yes, the true or estimated cost is $0 Financing source(s): ❑ Adopted Budget ❑ Budget Modification ❑ New Revenue Source ❑ Use of Reserves ✓ Other: This action is only signifying support of the potential project. The financial impacts of these projects will be analyzed and considered by the City Council at a later date. Strategic Plan Relevance: ❑ Community Inclusiveness ✓ Financial & Asset Mgmt ❑ Environmental Stewardship ❑ Integrated Communication ❑ Operational Effectiveness ✓ Targeted Redevelopment The city's 2040 Comprehensive Plan establishes the goal to "Improve the availability of affordable housing for both homeowners and renters" and identified an action item to "Partner with Metropolitan Council and other agencies and programs to provide funding assistance (to developers, and also to those in need of housing) to provide for affordable housing units in the community. " Background: Beacon Interfaith Housing Collaborative is working to construct 40 affordable housing units in a four-story building built at 1375 Frost Avenue. The 40 units would consist of 2,3 and 4-bedroom units affordable to households at or below 30 percent and 50 percent of the area median income. This property is guided by the city's 2040 Comprehensive Plan as Mixed Use Neighborhood High Density which encourages multi -family residential uses. Beacon Interfaith Housing Collaborative has identified a funding gap in their proposed projects — which is common for affordable housing developments — and is working to secure funding via Housing Tax Credits from the Minnesota Housing Finance Agency. They have also indicated that they would request tax increment financing from the city. See the attached memo from Ehler's — the city's financial consultant — on the requested tax increment financing amounts. Staff wants to emphasize that approval of the attached resolutions, letter, and Metropolitan Council form does not bind the city or EDA to any financial agreement. All projects are mandated to submit the required financial and land use applications, which would then go through a full public review process. This will include negotiating the appropriate level of public funding if any, the EDA deems necessary to contribute to the project. Attachments: 1. Location Map 2. Ehlers Memo 3. Resolution Supporting Use of Tax Increment Financing 4. Letter of Support from EDA President 5. Acknowledgment of Receptivity of a Metropolitan Council LCA Funding Award EDA Packet Page Number 11 of 19 G2 6. Resolution Identifying the Need For Livable Communities Demonstration Account Funding and Authorizing Application for Grant Funds EDA Packet Page Number 12 of 19 1375 Frost Avenue - Location Map G2, Attachment 1 W V-�' M City of Maplewood June 29, 2022 Maplewood EDA Packet Page Number 13 of 19 G2, Attachment 2 Sk EHLERS PUBLIC FINANCE ADVISQRs MEMORANDUM TO: Jeff Thomson - Community Development Director Michael Martin - Assistant Community Development Director FROM: Jason Aarsvold & Keith Dahl - Ehlers DATE: June 29, 2022 SUBJECT: 1375 Frost Avenue (Beacon Interfaith) - Resolution of TIF Support In early 2022, the City selected Beacon Interfaith through a competitive RFP process for the purchase and development of city -owned property at 1375 Frost Ave. Beacon's proposal included a 40-unit affordable housing project serving deeper levels of affordability with a mix of units affordable to those at 30% and 50% of area median income (AMI). This proposal included a purchase price of $455,000 for the city property as well as a request for 15 years of TIF assistance totaling $426,596. The City accepted Beacon's proposal on this basis. The project also relies on an allocation of low-income housing tax credits (LIHTC) from Minnesota Housing to support a significant portion of the development costs. Minnesota Housing annually reviews applications through a competitive scoring process and applicants must meet certain priorities and requirements established for the LIHTC program. In the capital contribution section of the application, projects can benefit from demonstrating a partnership with a local unit of government. Based on current parameters, the Beacon project will score more points in this section with tax increment financing (TIF) assistance from the City and increase their likelihood of receiving tax credits. If a local unit of government elects to support a project financially, a resolution of financial support is required for these points to be claimed in the scoring process. Beacon Interfaith Project Overview: Beacon's current pro forma and request for financial assistance are consistent with the original response to the City's RFP. The requested TIF assistance in the amount of $426,596 remains unchanged. The project contains 26 2-bedroom units that will be affordable to households at or below 30% of AMI, and 14 additional units (mix of 2, 3 and 4-bedroom) affordable to households at or below 50% of AMI. Based upon our review of Beacon's pro forma, the project has a significant gap based on the deeper levels of affordability being served. City TIF assistance is necessary, along with several other sources identified by Beacon, for financial feasibility. We conclude that TIF assistance in the amount of $426,596 is supportable for this project. Based on current estimates, this TIF assistance could be repaid within 15 years. Please contact Jason Aarsvold or Keith Dahl at 651-697-8500 with any questions. I3�1��.��.�e .. �W►�u�r��r�WIFIF :Ar>•I.nmia EDA Packet Page Number 14 of 19 M infoaehlers-inc.com �, 1 (800) 552-1171 @ www.ehlers-inc.com G2, Attachment 3 THE MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF MAPLEWOOD RESOLUTION NO. 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 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. The foregoing resolution was introduced by Commissioner and duly seconded by Commissioner . The following Commissioners voted in favor of the resolution: . The following Commissioners voted against the resolution: . The following Commissioners were absent: . Whereupon the resolution was adopted. ADOPTED: July 11, 2022 President Executive Director EDA Packet Page Number 15 of 19 G2, Attachment 4 July 11, 2022 Minnesota Housing Finance Agency 400 Wabasha Street North, Suite 400 Saint Paul, MN 55102 RE: Letter of Support for Beacon Interfaith Housing Collaborative The Maplewood Economic Development Authority is supportive of Beacon Interfaith Housing Collaborative's application for Minnesota Housing Tax Credits to construct a 40-unit apartment building for affordable housing. The City intends to process an application for a Tax Increment Financing district supporting the Project, including a 15-year TIF Note in an amount up to $ 426,596 in principal to address a funding gap for the Project. Housing is an integral component to our City's landscape. It is important to the Maplewood Economic Development Authority that a range of housing options be available to meet the needs of individuals and families throughout their lives, such as single-family detached homes, townhomes, condominiums, apartments and senior housing. An important component in providing that cross- section of housing options is the availability of affordable housing. This includes consideration of the cost of housing relative to the wages of those working in and around Maplewood. The cost and also the availability of housing, specifically rental, is an increasing concern throughout the Metropolitan region including here in Maplewood. The lack of and the rising costs of housing is negatively impacting our local businesses, both new and existing. Local business leaders have identified a lack of rental and affordable housing and indicate that such housing is a benefit to the City, to their ability to attract and retain employees, and for those employees themselves. With the substantial employment increase Maplewood has already experienced and will continue to experience, affordable housing for workers is an important priority for the City. As Beacon Interfaith Housing Collaborative moves through the city's formal TIF approval process and determination of the final amount of any assistance, the project will be required to complete the required public hearings and meet all state guidelines for TIF, including the "but for test". The Maplewood Economic Development Authority believes Beacon Interfaith Housing Collaborative's project is an excellent opportunity to help meet some of the housing needs in our community that are currently being underserved. In turn, we need development partners such as Minnesota Housing to assist us with our business and community housing needs. We encourage you to fund this needed project for our community. Sincerely, Bill Knutson President of the Maplewood Economic Development Authority EDA Packet Page Number 16 of 19 G2, Attachment 5 ACKNOWLEDGEMENT OF RECEPTIVITY TO A METROPOLITAN COUNCIL LCA FUNDING AWARD As a participant in the Metropolitan Council's Livable Communities Local Housing Incentives Account program, the City of Maplewood (name of city, county or development authority) supports the affordable and life -cycle objectives of the Livable Communities Act (LCA). Accordingly, it will accept and make available in a timely manner to Request for Proposal (RFP) applicant, Beacon Interfaith Housing Collaborative any LCA award to the city, county or development authority to assist the housing program or activity proposed in this application, if such an award is made, and to provide matching funds as required by state statute. By: (Authorized City Official) PROPOSED PROJECT INFORMATION (Required for grant contracting purposes) Gladstone Village Project Name Street boundaries or major intersections: PROJECT INFORMATION 1375 Frost Avenue Project Address PROJECT CONTACT INFORMATION Kirsten Spreck 2610 University Avenue West, suite 100 Saint Paul Contact Name 1:-7SIM]FAFAIII: 111-N Phone Number Address Fax Number Maplewood Project City C C 'I 'I A City Zipcode KSpreck@beaconinterfaith.org E-mail address CITY CONTACT INFORMATION Michael Martin, Assistant Community Development Director 651-249-2303 michael.martin@maplewoodmn. Contact Name Title Phone E-mail Address AUTHORIZED CITY, COUNTY OR DEVELOPMENT AUTHORITY OFFICIAL(S) CONTACT INFORMATION Melinda Coleman Executive Director 651-249-2055 melinda.coleman@maplewoodn Name Title Phone E-mail Address v .gov EDA Packet Page Number 17 of 19 G2, Attachment 6 THE MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF MAPLEWOOD RESOLUTION NO. 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 for2022 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 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: EDA Packet Page Number 18 of 19 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 execute such agreements as may be necessary to implement the project on behalf of the Maplewood Economic Development Authority. The foregoing resolution was introduced by Commissioner and duly seconded by Commissioner . The following Commissioners voted in favor of the resolution: . The following Commissioners voted against the resolution: . The following Commissioners were absent: . Whereupon the resolution was adopted. ADOPTED: July 11, 2022 President Executive Director EDA Packet Page Number 19 of 19