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Home My WebLink About6.g. Real Estate Equities CDA TIF Resolution of Support EXECUTIVE SUMMARY City Council Regular Meeting Date: September 20, 2022 AGENDA ITEM: Real Estate Equities CDA TIF Resolution of Support AGENDA SECTION: Consent PREPARED BY: Adam Kienberger, Community Development Director AGENDA NO. 6.g. ATTACHMENTS: Resolution of Support, Project Narrative, Amber Fields PUD Master Development Plan Exhibit APPROVED BY: LJM RECOMMENDATION: Motion to approve the attached resolution of support to have the Dakota County CDA create an affordable housing tax increment financing district for an affordable multifamily housing development within Amber Fields. BACKGROUND Real Estate Equities is pursuing development of a workforce housing multifamily project within the Amber Fields master planned development. As part of their development plans they will be requesting financing assistance via the Dakota County CDA in the form of tax increment financing (TIF). The CDA requests a resolution of support from the city prior to accepting and reviewing the request for TIF. A project narrative provided by the developer is attached along with a preliminary concept plan for 160 units to be restricted to those making less than or equal to 60% of the area median income (AMI). This concept is in conformance with the City’s comprehensive plan and aligns with the approved Amber Fields Planned Unit Development Master Development Plan (noted on the attached map as A.1 in the northeastern portion of the development adjacent to County Road 42). The Port Authority will discuss this item at their meeting on September 20th, prior to the City Council meeting. Staff is recommending the Port Authority provide a supporting recommendation to the City Council. RECOMMENDATION City staff recommends the City Council adopts the attached resolution of support to have the Dakota County CDA consider creation of an affordable housing tax increment financing district for a workforce multifamily housing development within Amber Fields subject to the conditions noted in the resolution. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION NO. A RESOLUTION AUTHORIZING THE ESTABLISHMENT OF A TAX INCREMENT FINANCING DISTRICT FOR AFFORDABLE HOUSING IN CITY OF ROSEMOUNT BY THE DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY WHEREAS, pursuant to Minnesota Statues, Section 383D.41, the Dakota County Community Development Agency (the “Agency”) is authorized to exercise the powers and duties of housing a redevelopment authority under the provisions of the Municipal Housing and Redevelopment Act, including the establishment of a tax increment financing plan and a tax increment financing district to provide monies to finance such a program; and WHEREAS, a proposal has been made to the Agency by Real Estate Equities (the “Developer”) that the Agency (a) undertake a tax increment financing program for Amber Fields Workforce Housing development (the “Project”) located in the City of Rosemount on the real property legally described on Exhibit A attached hereto (the “Site”) and (b) create a tax increment financing district and plan including such real property in order to finance the costs of said tax increment financing program. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Rosemount, Dakota County, Minnesota, as follows: 1. The development of the Project is consistent with the local and regional comprehensive plans, policies and goals. 2. Based on information as previously submitted by the Developer and contingent on the Developer’s pro forma demonstrating to the Agency the Project’s financial feasibility, the amount of financial assistance for the Project is approved in concept only. 3. The actual tax increment committed to the Project and number of years the Project receives tax increment financing will be determined by the Agency through a final financial analysis demonstrating the Projects financial need and shall be subject to the Agency’s policies. 4. The Agency is hereby authorized to take all actions necessary to create such tax increment financing district and related tax increment financing plan on the property legally described on Exhibit A, subject to and not before the Developer complies with all the following terms and conditions: a. The Developer must submit documentation outlining proof of a firm financing commitment of the Project that is submit to review and approve by the Dakota County Community Development Agency and its financial consultants. The form of tax increment financing assistance for the Project shall be determined based on a financial analysis of the Project’s need. b. The Developer agrees to enter into a Development Agreement with the Agency outlining all terms and conditions associated with the Project, including those outlined in this Resolution, as well as those otherwise deemed appropriate by the Agency. c. The Developer must secure all site plan, public utilities, and building code approvals from the City of Rosemount and all other associated and related governmental approvals. Nothing in this Resolution is deemed to obligate the City of Rosemount to approve any portion of the site plan, public utilities, and building code review process, nor is adoption of this Resolution considered approval of the foregoing. d. All terms, conditions, and obligations as outlined in this Resolution shall expire on September 20, 2023, unless all conditions herein have been satisfied. ADOPTED this 20th day of September 2022, by the City Council of the City of Rosemount. ______________________________ William H. Droste, Mayor ATTEST: ______________________________ Erin Fasbender, City Clerk September 13, 2022 Adam Kienberger Community Development Director City of Rosemount 2875 145th Street West Rosemount, MN 55068 Re: Project Narrative – Amber Fields Outlot D – Workforce Housing TIF District Dear Mr. Kienberger, We are pleased to present you this narrative regarding a request for a Resolution of Support for the creation of a Dakota County CDA TIF District for the Amber Fields Workforce Housing development. Real Estate Equities (and/or its affiliates) intends to develop 160 units of multifamily housing on Amber Fields Outlot D, pursuant to the Amber Fields Planned Unit Development Master Development Plan. Real Estate Equities is working on an application for site plan and plat approvals in order to change the outlot to a buildable lot. Based on timing of the application submittal, the application is likely to go before the Planning Commission this fall. The preliminary concept plan is attached as Exhibit A, with the understanding that it is subject to staff review as well as review from the applicable governing bodies. Real Estate Equities is proposing to restrict all 160 units to those making less than or equal to 60% of the area median income (rent and income levels attached as Exhibit B). The intent is to finance the below market rents through an allocation of low-income housing tax credits from Dakota County CDA (application to the CDA for tax credits expected to be submitted January 2023), as well as through a Tax Increment Financing District through Dakota County CDA. The request for TIF is for 15 years of assistance, issued via a “pay-as-you-go” note. Initial internal estimates of the TIF note equate to approximately $1,240,000 in principal. Upon a Resolution of Support from the City of Rosemount, Real Estate Equities will submit a full application for TIF assistance to the CDA for review and approval. We thank you for considering this application, and are happy to answer any questions. Sincerely, Patrick Ostrom Managing Development Partner. (651) 389-3800 579 Selby Ave Saint Paul, MN 55102 EXHIBIT A PRELIMINARY CONCEPT PLAN Total units – 160  1-bedroom – 32  2-bedroom – 80  3-bedroom – 48 Total Parking – 288 spaces (1.8/unit)  Underground – 159  Surface 129 4 Stories (54,000 SF per floor) Site Size – 4.5 Acres Density – 36 units/acre File No:67005 Copyright 2006-2016 American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. Commitment for Title Insurance (08-01-2016) Technical Corrections 04-02-2018 Exhibit A Page 2 EXHIBIT "A" Outlot D,Amber Fields, according to the recorded plat thereof, Dakota County, Minnesota. (Abstract Property) EXHIBIT B PROPOSED RENT AND INCOME LEVELS ANNUAL INCOME MAXIMUMS: MONTHLY RENTAL RATES: *Rent and income limits are based on the 60% Area Median Income limits as established annually by HUD 1-Person 49,320 2-Person 56,340 3-person 63,360 4-person 70,380 1-bed 1,240 2-bed 1,486 3-bed 1,714 2 A m b e r F i e l d s M a s t e r P l a n D R A F T 8 / 2 0 / 2 1 M a s t e r P l a n UM o r e P a r k 0’ 3 0 0 ’ 6 0 0 ’ 15 0 ’