DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action
TITLE
title
Schedule Public Hearing To Receive Comments On Proposed Establishment Of Dakota County CDA Tax Increment Financing District No. 4-17, A Housing District, And Adopt Tax Increment Financing Plan
end
PURPOSE/ACTION REQUESTED
Schedule a public hearing to receive comments on the Tax Increment Financing Plan for the establishment of Dakota County Community Development Agency (CDA) Tax Increment Financing (TIF) District No. 4-17 (Amber Fields Housing Project), a housing TIF district, in the City of Rosemount (the City).
SUMMARY
Real Estate Equities, LLC, (the developer) has submitted a request to the CDA to establish a housing TIF district for a 160-unit general occupancy apartment building, to be named Amber Fields Apartments, on an approximately 4.5-acre site generally located southwest of County Road 42 (145th Street W.) and Akron Avenue. The project's 160 units will be income and rent-restricted to households earning 50, 60, and 70 percent Area Median Income (AMI) or below. For a one-person household in Dakota County in 2022, 60 percent AMI is $49,320. Per Minnesota Statutes, the housing development must remain affordable for the life of the TIF district.
The developer states the total development cost for the project is approximately $49 million. In addition to housing revenue bonds and an automatic allocation of four percent housing tax credits, the developer is requesting the following financial assistance from the CDA and County.
* $750,000 in CDA HOPE funds; this is a deferred loan.
* A housing TIF district generating approximately $760,000 (present value) for the developer.
The CDA's Housing Finance policy states TIF assistance, if approved, is to be provided in the following manner:
* A maximum of 15 years of increment payments to the developer. A housing district may extend up to 25 years per state statute.
* Assistance to the developer not to exceed 70 percent of ...
Click here for full text