HomeMy WebLinkAbout2024-09-09 EDA Meeting Packet
AGENDA
MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY MEETING
5:45 P.M. Monday, September 09, 2024
City Hall, Council Chambers
A. CALL TO ORDER
B. ROLL CALL
C. APPROVAL OF AGENDA
D. APPROVAL OF MINUTES
1. August 12, 2023 Economic Development Authority Special Meeting Minutes
E. PUBLIC HEARING
None
F. UNFINISHED BUSINESS
None
G. NEW BUSINESS
1. Review of Tax Increment Financing Terms and Project Schedule, Gladstone Village
II, 1880 English Street
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
MEETINGMINUTES
MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITY
SPECIAL MEETING
5:30 P.M. Monday, August 12, 2024
City Hall, Council Chambers
A.CALL TO ORDER
A special meeting of the Maplewood Economic Development Authority (EDA)was heldin
the City Hall Council Chambers and was called to order at5:30p.m. by President
Abrams.
B.ROLL CALL
Marylee Abrams, PresidentPresent
Rebecca Cave, CommissionerPresent
Kathleen Juenemann, CommissionerPresent
Chonburi Lee, CommissionerPresent
Nikki Villavicencio,CommissionerPresent
C.APPROVAL OF AGENDA
CommissionerCavemoved to approve the agendaas submitted.
Seconded by CommissionerLee Ayes – All
The motion passed.
D.APPROVAL OF MINUTES
1.November27, 2023 Economic Development AuthoritySpecial Meeting Minutes
CommissionerLeemoved to approve the November27, 2023 Economic Development
AuthoritySpecial Meeting Minutes assubmitted.
Seconded by CommissionerJuenemann Ayes – Mayor Abrams
Councilmember Juenemann
Councilmember Lee
Councilmember Villavicencio
Abstain – Councilmember Cave
The motion passed.
E.PUBLIC HEARING
None
F.UNFINISHED BUSINESS
None.
G.NEW BUSINESS
August 12, 2024
Maplewood Economic Development AuthoritySpecial Meeting Minutes
1
EDA Packet Page Number 1 of 10
D1
1.Election of Officers
Executive Director Sable gave the staff report.
Commissioner Cavemoved to nominate CommissionerAbramsas President until the
first meeting of 2025.
Seconded by Commissioner JuenemannAyes – All
President Abramsmoved to nominate Commissioner Caveas Vice President until the
first meeting of 2025.
Seconded by CommissionerLeeAyes – All
The motion passed.
President Abramsmoved to nominate CommissionerVillavicencio asTreasureruntil the
first meeting of 2025.
Seconded by CommissionerCaveAyes – All
The motion passed.
President Abramsmoved to nominate City Clerk Sindtas Secretaryuntil the first meeting
of 2025.
Seconded by CommissionerCaveAyes – All
The motion passed.
President Abramsmoved to nominate Finance Director Ruebas Assistant Treasureruntil
the first meeting of 2025.
Seconded by CommissionerJuenemann Ayes – All
The motion passed.
2.Housing and Economic Development Discussion
Assistant Executive Director Parr and Stacie Kvilvang, Senior Municipal Advisor with
Ehlers, gavethe presentation. Executive Director Sable added additional information.
The EDA members discussed the item.
No action required.
H.ADJOURNMENT
President Abramsadjourned the meeting at6:39p.m.
August 12, 2024
Maplewood Economic Development AuthoritySpecial Meeting Minutes
2
EDA Packet Page Number 2 of 10
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MAPLEWOOD ECONOMIC DEVELOPMENT AUTHORITYSTAFF REPORT
Meeting Date September 9, 2024
REPORT TO:Michael Sable, Executive Director
REPORT FROM: Michael Martin, Assistant Community Development Director
PRESENTER:Danette Parr, Assistant Executive Director
AGENDA ITEM: Review of Tax Increment Financing Terms and Project Schedule,
Gladstone Village II, 1880 English Street
Action Requested: MotionDiscussion Public Hearing
Form of Action: Resolution OrdinanceContract/Agreement Proclamation
Policy Issue:
JB Vang proposes to develop Gladstone Village II, a 56-unit affordable multi-family apartment
project located on an approximately 1.15-acre site at 1880 English Street North. JB Vang has
applied for Tax Increment Financing (TIF), but before that full review is conducted, the Maplewood
Economic Development Authority (EDA) is being asked to provide feedback on the financing terms
and project schedule.
Recommended Action:
No action is required.
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: The discussion itself will not bind the EDA
to commit financial resources to this project. If a TIF request is ultimately approved, a tax increment
revenue note would be issued to the developer, paying a portion of the tax increment generated by
the developer's private improvements.
Strategic Plan Relevance:
Community InclusivenessFinancial & Asset MgmtEnvironmental Stewardship
Integrated CommunicationOperational EffectivenessTargeted Redevelopment
The City has been supporting development projects as part of its Gladstone Neighborhood
redevelopment strategy. The 1880 English Street property is located in the Gladstone
neighborhood.
Background:
Project Overview
JB Vang has received land use approvals for the redevelopment of 1880 English Street North. The
EDA Packet Page Number 3 of 10
G1
project included removing the existing manufactured home park and building a56-unit multifamily
building. The building would be four stories of above-ground wood-framed construction; and a floor
of underground parking. The entire building will be approximately 98,079 gross total square feet,
with an approximately 19,243 square foot footprint. The 56-unit affordable housing building includes
the approximate unit mix: 21 percent one-bedrooms, 34 percent two-bedrooms, 29 percent three-
bedrooms and 16 percent four-bedrooms. There will be 72 parking spaces provided on-site, of
which 50 spaces will be within a secured parking garage.
The proposed building will be constructed primarily of brick and stucco with metal accents. Its
amenities include a community, co-working room, and fitness center. The courtyard, which is
shaped by the building facing south, is utilized as an outdoor grilling patio and playground, giving
the residents a resident-only outdoor space.
Financial Request
The Maplewood EDA received a financial assistance request from JB Vang seeking TIF for the
proposed redevelopment of 1880 English Street North. Construction would commence in 2025 and
is anticipated to cost approximately $28.2 million or $ 504,134 per unit. The developer proposes
using TIF funding only for qualified costs as allowed by state statute.
JB Vang initially requested TIF assistance in the amount of $348,000 over 26 years to construct
the project. City staff and Ehlers, the city’s financial consultant, reviewed the request and have
worked with the applicant to land on a TIF request with a principal amount of $309,900 over 20
years, which is necessary to make the project financially feasible. If the TIF note is not repaid at the
end of the 20 years, the city does not make up the shortfall. Please see the attached memo from
Ehlers for more analysis of this request and the proposed terms.
Project Schedule
On October 28, 2024, the EDA will consider a resolution adopting the plans in connection with the
TIF District. That same evening, the Maplewood City Council will hold a public hearing to consider
establishing the Redevelopment Plan for Development District No. 1 and the proposed
Establishment of Tax Increment Financing District No. 1-18 and consider a resolution approving the
plans.
Attachments:
1.Location Map
2.Ehlers Memo
3.Project Schedule
EDA Packet Page Number 4 of 10
G1, Attachment 1
Overview Map - 1880 English Street North
June 18, 2024
City of Maplewood
Legend
!
I
Subject Parcel
0475
Feet
Source: City of Maplewood, Ramsey County
EDA Packet Page Number 5 of 10
G1, Attachment 2
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EDA Packet Page Number 6 of 10
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EDA Packet Page Number 7 of 10
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EDA Packet Page Number 8 of 10
G1,
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EDA Packet Page Number 9 of 10
G1,
Attachment 3
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EDA Packet Page Number 10 of 10
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 1
EDA ÎSeptember 9, 2024
JB Vang Project1880 English St
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 1
2
Frost Ave
English St
TIF District No. 18 ÎJB Vang 1.Project Overview2.Past Action3.Pro Forma Analysis 4.TIF Plan Process5.Next Steps
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 1
3
Income restriction at 30%, 50%, and 60% of Area Median Income
Project Overview ¤19 manufactured homes to 56 new apartment units¤June 30, 2023 ÎEDA Resolution of TIF support¤Project qualifies as a Housing TIF district
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 1
4
Project Budget
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 1
5
of the tax
pricing
credits (syndication rate)
Proforma Analysis¤Maximization of first mortgage proceeds¤Low Income Housing Tax Credits ÎAssociated ¤Deferred Development Fee ÎAmount and timing of the repayment¤Cost of the project
¤Management fees
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 1
6
may not reasonably occur without public assistance up front from the City ÎDeveloper obtains financingnot make up the difference Recommended assistance: $309,900 payable up to 20 years
Proforma Analysis¤Based on current market conditions and proforma, the development ¤Assistance would be Pay-As-You-Go TIF Note Îmeaning nothing ¤Payments made ONLY from captured tax
increment¤If TIF Note is not repaid during specified duration, the City/EDA does ¤
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 1
7
4d(1) Class Rate Adjustment
* Maplewood City Tax Rate is 42.9%
THENClass rate is 0.25% for all value
IF20% of units affordable at 60% AMI or below,
Change to how first $100,000 of value is treated:
Property Tax Change:
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 1
8
Lessens the need for TIF on some projects
4d(1) properties This project is deeply affordable and needs all funding sources shown
4d(1) Qualification Criteria¤4d(1) reduces property taxes for the development¤Lessens the amount of TIF generated¤LAHA or other city funds used in place of TIF¤Cities have the right
to approve requests if 2% of tax capacity in ¤
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 1
9
Next Steps¤Development Agreement¤TIF Plan Process ÎHearing on October 28, 2024¤Developer closing ÎDecember 2024
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 2
For the permanent record:
Meeting Date: 09/09/2024
Agenda Item G1, Additional Attachment 2