HomeMy WebLinkAboutResolution No. 2021-05 Supporting Senior Affordable Housing at 4040 W. 70th St. Using TIFEDINA HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF EDINA
COUNTY OF HENNEPIN
STATE OF MINNESOTA
Ilia IA A 0 i D
LCM FIVQ111 10 L 110 Lai I
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 units to
supplement the stock of market rate units available in the marketplace; and
WHEREAS, the HKA entered into a loan agreement with the Edina Housing Foundation
for $3,650,000 for the acquisition of 4040 West 70 th Street for the sole purpose of facilitating the
development of affordable housing; and
WHEREAS, Lupe Development Partners together with Ecumen (the "Developer")
propose to construct a new 100% affordable multi -family housing project on the site that consists
of approximately 118 rental apartment units, restricted to seniors (the "Project"); and
WHEREAS, the Developer entered into a 99-year ground lease with the Edina Housing
Foundation in October 2020 and is currently seeking funding from several sources to begin
construction in 2022; and
WHEREAS, the Project will be owned by a limited partnership to be formed by the
Developer; 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 Housing Revenue Bonds; and
CITY OF EDINA
4801 West 50th Street - Edina, Minnesota 55424
www.EdinaMN.gov - 952-927-8861 ® Fax 952-826-0389
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 will be developed with the requirements of Minnesota Statutes
§§ 469.174 to 469.1794 (the "TIF Act"), including but not limited to the requirements set forth
in Minnesota Statutes § 469.1761; and
WHEREAS, the Project is estimated to cost approximately $32,373,900 and the
Developer is requesting approximately $1,808,000 in tax increment financing from the City; and
WHEREAS, the City and the Developer will negotiate a Redevelopment Agreement
governing the Project that will satisfy all requirements of the TIF Act; and
WHEREAS, subject to the requirements of the Redevelopment Agreement governing
the Project and the requirements of the TIF Act, the City will establish a new housing TIF district
pursuant to the TIF Act and 2014 Minnesota Session Laws, Chapter 308, Article 6, Section 8 (the
"Edina Legislation") that will include the Property (the "Housing TIF District"); and
WHEREAS, A Public Hearing regarding the establishment of the 4040 W. 70`h St. TIF
District is scheduled for August 4, 2021; and
WHEREAS, the establishment of the Housing TIF District for the Project and the
pledging of the tax increment to secure a loan for the project will be a local contribution and will
assist the Developer in securing the approvals from the MHFA for LIHTC and additional financing.
NOW THEREFORE, BE IT RESOLVED, the Housing and Redevelopment Authority
of the City of Edina endorses the Developer's application for LIHTC and deferred financing as
allocated by MHFA; and
BE IT FURTHER RESOLVED, the Edina Housing and Redevelopment Authority shall
provide, subject to the requirements and conditions of this Resolution and the TIF Act, a total of
up to $1,808,000 in tax increment financing in order to facilitate the financing of the Project. If
MHFA funding is not approved by December I, 2023, the Housing and Redevelopment Authority
may rescind its financing commitment to the Project.
Attest:
STATE CJFM|NNESOTA \
COUNTY OFHBNNBqN >SS
CITY OF EDINA
CERTIFICATE 0PEXECUTIVE DIRECTOR
|. the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment
Authority Johereby certify that the attached and foregoing Resolution was duly adopted by the Edina Housing and
Redevelopment Authority at its Regular Meeting of June 24, 202 1, and as recorded in the Minutes of said Regular
Meeting,
WITNESS myhand and seal ofthe City this __ day of 2021.