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HomeMy WebLinkAbout4.c. Update on Purchase of Broback Industral Park A CITY OF ROSEMOUNT EXECUTIVE SUl�lARY FOR ACTION PORT AUTHORITY MEETING DATE: APRIL 5, 1994 AGENDA ITEbI: UPDATE OF BROBACK INDUSTRIAL AGENDA SECTION: PARK PURCHASE OLD BUSINESS PREPARED BY: RON WASMUND, AGENDA NO. PUBLIC WORKS DIRECTOR 4 . C. ATTACHMENTS: CORRESPONDENCE APPROVED BY: / Since the last port authority meeting I have received correspondence from Dakota County HRA and John Miller and I have met with HRA staff. Several questions were discussed. It appears from the knowledge I have of the Cottages Inc. proposal that their project is dependent upon them receiving Low Income Housing Tax Credits (LIHTC) . These credits are issued by Minnesota Housing Finance Agency (N�iFA) through the local HRA. In discussion with the HRA, they were not able to tell us who would get the credits until some time after the application deadline of April l. The other thing they indicated was that a project that restricted occupancy to persons of 55 years of age or over could not be awarded the tax credits in the first round. Second and third round funding may be available through NgiFA. The last item we discussed was the market for senior housing in Rosemount. There is a need but it may need to be studied further to determine the exact numbers. The HRA was unable to commit to a specific amount of increment due to a lack of information available to them. They are, however, very interested in continuing the working relationship that has existed between the city and the HRA for years. The research that has been done and discussion that has taken place would suggest the following to me: 1. There is a general interest in the proposal to acquire the property if the port authority doesn't lose money or invest money they don't have. 2. The interest in the proposal is only if there is no conflict of interest created which through written memo it is stated there is none. 3. The property owners are willing sellers for a specified price, which it appears they are. 4. The project is needed and the proponents are capable of doing it. It is therefore my recommendation that Cottages Inc. conduct a market study and submit it for port authority review along with the financial statements necessaYy to demonstrate project feasibility. If the port authority is satisfied that the project is feasible based upon needs in the community and financial commitments and desires to proceed with the purchase we only need to issue a purchase agreement to the Brobacks. The question of tax increment can be worked out when the roject is determined. RECONIlKENDED ACTION: Motion directing Cottages Inc. to support their proposal with a market study and financials showing project viability. PORT AUTHORITY ACTION: � � � i �KOTA COUNTY Housing & Redevelopment Authorit�- biz-�+�3-{aoe ?496-14ich Sc.W.• Rusemuun�,MN i�068•T.D.D.61'_-�23-31�3? •FAX 61L42i-8180 �,�j`��4#�r Mr. Ron wasmund NJQR 1 � �99� - City of Rosemount 2875 - 145th Street West Cl7Y �� ,,v,�;�.,�,�„d PO Box 510 Rosemount, MN 55068 Dear Mr. Wasmund: Per our conversation regarding the HRA TIF District located in the Broback Industrial Park, I have found the following information for you. The property is Iocated in the HR.A TIF 2 District which was created in 1984 and due to collapse in 2009 . It is very difficult to figure out how much increment the parcels ger.erate in the industrial park, as the County does not breakdown the increment by parcel by rather looks at the entire district as a whole. I spoke to Mark about the area, and he informed me that much of the land is undeveloped, so the increment at this point, would be very minimal as the values on vacant land do not incrzase by much. Also in my conversation with Mark, he questions whetner there is a need for additional senior housing in the City of Rosemount. It is my understanding that the HRA and another developer are both looking senior housing in the City. If you would like I would be more than happy to send to you a study the HRA hired Health . Planning and Management Resources, Inc. to conducte regarding the need for affordable senior housing. Please do not hesitate to contact me with further questions. Thank you. . Sincerely, • Yv tte Quar o Ho sing Fi n oordinator "AN EQUAL OPPORTliNITY EMPLOYER" i i � �KOTA COUNTY Housing & Redevelopment Authority �iz-��3-��00 2496-t=}>th St.W. • Rusemuunt,VIN�5i06E3�T.D.D.613-=}��3.ti18Z �F.�X 61Z-423-81N0 � .'is..,�r• �t.' �,;r- � � ���� Mr. Ron Wasmund City of Rosemount �%'� 2875 - 145th Street West ����� PO Box 510 Rosemount, MN 55068-0510 Dear Mr. Wasmund: It was a pleasure meeting with John Milller and yourself regarding the proposed senior developments in the City oi kosemounz. 1 thought it would be helpful for all of us, if I reiterate three points from our meeting. First, the HRA, in the first low income housing tax credit funding round, will be accepting applications until April 1. Unfortunately, because of state law, the HRA is unable to award taY credits to developments that are restricted for persons 55 and over. However, I continue to encourage developers to apply in the second or third funding rounds for credits through the Minnesota Housing Finance Agency. In addition, the HRA is concerned that there maybe an additional 96 additional senior units in the City beyond the 40 units proposed by the HRA. Based on the Health and Management Senior Needs Assessment prepared for the HRA, there is not a strong demand for an additional 96 senior units in the City. Finally, the HRA would like to express our cooperation to work with the City in assisting with a future needs assessment for senior housing in the City of Rosemount. Mark and I both feel this may help the City decide if additional senior units are needed. Or_c� 3���..^.� T look forward t� werking cai.��? the City en future developments. Also, thank you for taking the time to meet with Mark and I regarding a very important issue. Please do not hesitate to contact me at 423-8104 with any questions. Sincerely, ,� 1 Yv t H us ' g F a e Coordinator cc: John Miller, City of Rosemaunt Mark Ulfers, Dakota County FiRA "A� EQliAL OPPORTUNITY ELIPLOYER"