July 12 Special HRA AgendaCall to Order
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS
JULY 12, 2022
6:15 PM
AGENDA APPROVAL
1.Approval of the Agenda
RESOLUTIONS
2.Consideration of a resolution supporting a tax credit application for a proposed mixed-use development by
Minnesota Independence College and Community, located at 2000, 2006 and 2018 - 76th Street West and 7532
Morgan Avenue South.
Staff Report No. 24
3. Adjournment
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AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #2.
STAFF REPORT NO. 24
HOUSING AND REDEVELOPMENT AUTHORITY
MEETING
7/12/2022
Julie Urban, Asst. Community Development DirectorREPORT PREPARED BY:
EXECUTIVE DIRECTOR REVIEW: Melissa Poehlman, Executive Director
7/7/2022
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution supporting a tax credit application for a proposed mixed-use
development by Minnesota Independence College and Community, located at 2000, 2006 and 2018 -
76th Street West and 7532 Morgan Avenue South.
EXECUTIVE SUMMARY:
Minnesota Independence College and Community (MICC) is proposing to construct a new building with
29,271 square feet of office and classroom space and up to 59 affordable housing units on property they own
on 76th Street West, between Morgan and Newton Avenues. All of the housing units would be priced at
50% of the Area Median Income (AMI) and provided in a mix of one, two, and three bedroom units.
MICC is applying for federal tax credits in order to finance the development. They are also seeking financial
assistance from the Housing and Redevelopment Authority (HRA) through the creation of a Tax Increment
Financing (TIF) District and issuance of a pay-as-you-go note. The project has a gap that the
developer could partially fill with TIF generated by the new development. The City's financial
consultant has determined that the project generates a present value of $817,032 in TIF over 26
years and that the project warrants this funding given the high cost of redevelopment and
providing 100% affordable units.
A resolution committing the HRA's financial support is required for the tax credit application;
however, a more detailed analysis of the project finances will be completed before the HRA actually
awards TIF through a development agreement.
RECOMMENDED ACTION:
By motion: Approve a resolution supporting a tax credit application for a proposed mixed-use
development by Minnesota Independence College and Community, located at 2000, 2006 and 2018 -
76th Street West and 7532 Morgan Avenue South.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
Minnesota Independence College and Community is a 501(c)3 nonprofit vocational and life
training program for young adults with learning differences and autism spectrum
disorder. Since its founding in 1996, MICC has remained dedicated to helping participants
make successful transitions towards independent living and financial self-sufficiency.
MICC has operated from the Colony Apartments in Richfield since its inception in
1996.
On Monday, June 21, 2021, at a joint work session of the City Council, HRA, and
Planning Commission, MICC and partners from Bumpy Lane, LLC (Developers)
presented conceptual plans for the development of a mixed use building including
services and affordable/accessible apartments.
The HRA adopted a Resolution of support for the project concept at their August
16, 2021 meeting.
In January 2022, the project was awarded Livable Communities Demonstration
Account (LCDA) funding, including funds to acquire an additional property. LCDA
funds are awarded to municipalities and can be used toward eligible project activities.
On April 18, 2022, the HRA approved a Preliminary Development Agreement with MICC.
B.POLICIES (resolutions, ordinances, regulations, statutes, etc):
The 2040 Comprehensive Plan calls for a full range of housing choices that meets residents'
needs at every stage of their lives, and ensures a healthy balance of housing types that meets the
needs of a diverse population with diverse needs.
Federal tax credit applications are funded based on how well a project scores and is in alignment
with the State's Qualified Allocation Plan (QAP). Projects that maximize local funding sources are
more competitive for tax credits.
The proposed affordability of the project exceeds the requirements of the City's Inclusionary
Housing Policy as well as state statute relating to the creation of a housing TIF district. In addition
to 100% of the units being affordable at 50% of the AMI, in a mix of bedroom sizes, four of the 59
units (6.7%) will be accessible.
C.CRITICAL TIMING ISSUES:
The tax credit application is due July 14, 2022.
D.FINANCIAL IMPACT:
MICC is applying to Minnesota Housing for $11.5 million in federal tax credits.
The project is expected to generate approximately $817,032 in TIF over 26 years. The project has
identified a need for the assistance.
A more detailed financial analysis of the project will be completed before the HRA is asked to
award TIF through a development agreement.
E.LEGAL CONSIDERATION:
The tax credit application requires that satisfactory documentation confirming that the contribution
is committed to the development be submitted at the time of application. The documentation must
include a resolution from the local government unit indicating its intention to provide TIF or
property tax abatement assistance. The anticipated amount must be included in the resolution or a
letter from the local government unit.
ALTERNATIVE RECOMMENDATION(S):
Do not authorize support of the tax credit application.
PRINCIPAL PARTIES EXPECTED AT MEETING:
Representative(s) of MICC
ATTACHMENTS:
Description Type
Map Exhibit
Colony Apartments
(MICC's Current Location)
Donaldson ParkRichfield Middle School
Best Buy HQ
MICC-owned Property
75TH ST W
76TH ST W HUMBOLDT AVE SKNOX AVE SLOGAN AVE SNEWTON AVE SMORGAN AVE SSBI35WTO76THSTW±
2040 Comprehensive Plan Designations
I:\GIS\Community Development\Case Maps\2021\MICC 2040 PLU Designations + SF Home.mxd
2040 Comprehensive Plan Designations
Mixed Use
Regional Commercial
Community Commercial
Neighborhood Commercial
High Density Residential
Medium Density Residential
Low Density Residential
Park
Quasi-Public
Right-of-Way (ROW)
Minnesota Independence College and Community
0 250 500125ft
MICC CurrentLocation
MICC OwnedProperties