HomeMy WebLinkAboutResolution No. 2019-01 Support of Affordable Housing at 4100 W. 76th StRESOLUTION NO. 2019-01
RENEWING SUPPORT OF AFFORDABLE HOUSING AT 4100 WEST 76th STREET
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Edina,
Minnesota as follows:
WHEREAS; the City of Edina recognizes the need to create affordable housing to supplement
the stock of market rate units available in the marketplace; and
WHEREAS, Aeon, a not -for -profit developer of affordable housing (the "Developer") proposes
to construct a new multi -family housing project at 4100 West 76th Street that consists of approximately
70 rental apartment units targeted as 100 percent affordable housing, serving individuals and families with
incomes at or below 60 percent area median income (the "Project"); and
WHEREAS, the Project will be owned by a limited partnership with the sole member of the
General Partner being Aeon; and
WHEREAS, the Developer signed a Purchase Agreement for the property in May 2018, which
was acquired in October 2018 by the Land Bank Twin Cities to hold for the proposed development;
WHEREAS, the Developer is currently seeking funding from several sources to construct the
Project in 2020; and
WHEREAS, a variety of grants or other public financial assistance will be required to build the
Project including low-income housing tax credits ("LIHTC") from the Minnesota Housing Finance Agency
(the "MHFA") and deferred financing from Hennepin County; and
WHEREAS, the Edina Housing and Redevelopment Authority has access to funds that have been
collected or could be used to support affordable housing located within the boundaries of the Southeast
Edina Redevelopment Project Area; and
WHEREAS, the Project is estimated to cost approximately $22,000,000 and the Developer is
requesting a renewed commitment of up to $2,400,000 in financing from the City through the Housing
and Redevelopment Authority (in addition to a renewed commitment up to $925,000 in tax increment
financing through the establishment of a new housing TIF district pursuant to the requirements and
conditions of Resolution 2018-03); and
WHEREAS, this financing is a local contribution and will assist the Developer in securing the
approvals from the MHFA for housing tax credits; and
WHEREAS, the local financing will be structured as a 30 to 40-year deferred loan (based on the
term of the first mortgage) with I percent simple interest.
NOW THEREFORE, BE IT RESOLVED, the Housing and Redevelopment Authority of the
City of Edina endorses the Developer's application for LIHTC and deferred funding as allocated by MHFA;
in addition to applications to Hennepin County and Metropolitan Council; and
CITY OF EDINA
4801 West 50th Street • Edina, Minnesota 55424
www.EdinaMN.gov • 952-927-8861 • Fax 952-826-0389
BE IT FURTHER RESOLVED, the Housing and Redevelopment Authority shall provide, in
accordance with the requirements of this Resolution, a total of up to $2,415\,
0,000 to facilitate the financing
of the Project.
BE IT FURTHER RESOLVED, the Housing and Redevelop en Authority has the ability to
rescind the financing commitment if the development has not secured fufin. ncing by June 2021.
Passed and adopted this 17th day of January 2019
Attest
C Q h5Le', Secretary
M
STATE OF MINNESOTA )
COUNTY OF HENNEPIN) SS
CITY OF EDINA
James B. ' ovland, Chair
CERTIFICATE OF EXECUTIVE DIRECTOR
I, the undersigned duly appointed and acting Executive Director for the Edina Housing & Redevelopment
Authority do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina
Housing & Redevelopment Authority at its Regular Meeting of January 17, 2019, and as recorded in the
Minutes of said Regular Meeting.
WIaoTNFSmy hand and seal of said City this
•
day of S"`ok(`*
tt H. ' eal
Sco Executive Director