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From YouTube: November 7, 2018 Housing Policy & Development Committee
Description
Minneapolis Housing Policy & Development Committee Meeting
A
Good
afternoon
call
to
order
our
meeting
of
the
housing
policy
and
development
committee.
This
is
our
regularly
scheduled
meeting
for
November
7th,
I'm,
cam,
Gordon,
I'm
sure
the
committee
and
I'm
joined
today
by
Vice
Chair,
Jeremiah,
Ellison
and
council
members,
Reich
Goodman
and
Schrader
we're
a
quorum
of
the
committee.
So
we
can
conduct
our
business.
You
actually
have
a
rather
extensive
agenda
with
13
items
on
it.
We
have
five
public
hearings,
but
we
also
have
a
consent,
agenda
and
I.
Think
I'm
gonna
move
the
consent
agenda
forward.
A
A
Why
don't
we
go
ahead
and
we'll
move
items,
seven,
eight
and
nine
and
I'll?
Let
you
know
what
those
are
item.
7
is
the
desertification
of
Portland,
Place
tax,
increment
financing
districts
item
eight
is
approving
the
granting
of
exclusive
development
rights
for
development
of
6:28,
Franklin,
Avenue
East
to
di
VI
and
E
or
an
affiliate
item.
Nine
is
authorizing
staff
to
continue
the
analysis
of
the
readwell
proposal
to
determine
if
tax
increment
financing
assistance
is
appropriate
or
justifiable.
That's
at
one
thousand
third
Street
north
so
on
those
I
will
move
those
three
items
forward.
A
B
Yeah
I
have
delve
into
this
project
a
little
bit's,
the
pinnacle
Management.
It's
the
approval
of
a
waiver
for
a
payment
of
holding
costs
and
I
would
like
to
you
know
knowing
a
little
bit
about
the
project.
I
feel
like
it
doesn't
really
meet
any
kind
of
standard
for
to
receive
any
kind
of
like
subsidy
or
fee
waivers
from
the
city
and
would
like
to
make
a
motion
to
deny
any
approval
of
any
waver
waver
for
payment
of
holding
costs.
Okay,.
A
Then
councilmember
Ellison
has
moved
to
not
approve
a
waiver
for
payment
of
holding
costs
or
deny
approval
of
a
waiver.
Any
discussion
on
that
motion
seeing
none,
then
all
those
in
favor,
please
say
aye
motion
carries
then
I
should
say
all
those
opposed.
That
motion
carries
and
then
I'll
move
on
to
item
ten
for
a
quick
question
from
councilmember
Goodman
Thank.
C
You
mr.
chair,
you
might
remember
from
the
last
council
meeting,
there
were
a
number
of
questions
and
our
colleague
councilmember
cunningham
actually
pulled
off
the
agenda,
and
then
I
pulled
him
off
the
ledge,
not
selling
a
number
of
properties
to
give
it,
and
there
were
some
concerns
about
gimmick
and
I'm
just
wondering
now.
We
are
putting
them
on
another
list
here
to
be
allowed
to
participate
in
the
how
program.
Yet
the
council,
member
that
has
the
most
gimmick
houses
has
concerns
about
it,
and
I
didn't
I
sent
him
an
email
about
it.
C
D
C
E
C
A
So,
on
councilmember
Goodman's
motion
to
move
this
forward
without
recommendation
any
discussion
seeing
none
all
those
in
favor,
please
say
aye
any
opposed,
say
no,
and
that
motion
carries
now
we'll
go
back
to
our
public
hearings
and
we're
going
to
be
first
doing
for
land
sales.
I
think
maybe
we'll
take
the
first
two
separately
and
the
second
two
together
and
is
mr.
Ramadan
here
to
report.
Welcome
good.
F
F
We
marketed
this
to
over
2400
people,
and
this
was
only
offer
refracts.
Excuse
me.
There
were
seven
applications
received.
Besides
the
two
recommended,
we
also
had
C
TW
group
Northeast,
Minneapolis,
Properties,
LLC,
ladybug,
LLC,
ty,
han
and
top
property
solutions.
How
Virginia
investments
and
PRG
were
the
two
highest
ranked
because
of
their
greater
experience
and
quality
of
completed
projects.
The
purchaser
proposes
to
invest.
158.
F
Excuse
me
hundred
sixteen
thousand
200
and
private
funds
to
rehab
the
property
as
a
3-bedroom,
2bath,
single-family
home,
to
be
marketed
exclusively
to
owner
occupants.
The
alternate
purchase.
That's
a
PRG
proposes
to
access
$274,000
and
how
funds
to
rehab
the
property
at
the
3-bedroom
2-bathroom
single-family
home,
with
a
detached
new
construction
garage
to
be
marketed
exclusively
owner-occupants
notification
was
provided
to
the
Jordan
neighborhood
council.
Excuse
me:
Jordan
Area,
Community
Council
on
July
13
2018,
the
developer
Jenny
Curry
of
Ginny
Investments
is
here
today.
F
I
should
just
say
that,
hopefully,
you
all
will
have
opportunity
to
meet
with
us
sometime
in
the
future.
We
had
a
very
great
open
house
tour
of
couple
of
Ginny's
properties
earlier
this
fall
that
she
acquired
from
the
city
in
April
and
completed
in
less
than
five
months,
and
so
this
is
one
of
our
superstars.
That
we'd
like
you
to
get
to
know.
Are
there
any
questions
for
me,
I.
E
A
That
anyone
else
want
to
speak
about
this,
seeing
no
one,
then
I'll
close
the
public
hearing
and
I
will
move
passage
of
the
resolution
approving
the
sale
as
recommended
all
those
in
favor,
please
say
aye
any
opposed,
say
no.
That
motion
carries
and
now
we'll
move
on
to
our
second
land
sale.
This
is
a
22
12,
36th
Avenue
north
to
top
property
solutions.
F
Mr.
chair
committee,
members
22:12
36th
Avenue
North
again
through
the
Minneapolis
Holmes
program
on
December
30.
Excuse
me:
December,
11,
2015
and
February
10
2017
we're
recommending
the
sale
of
this
property
to
top
property
solutions
for
its
appraised
day
of
twenty
thousand
dollars
and
if
they
fail
too
close
to
RLS
Investments
LLC
for
twenty
thousand
subject.
Subject:
conditions
this
property
was
acquired
on
July,
the
12
2017
County,
that's
tax
forfeited
land
for
$1
again
was
marketed
over
2400
and
we
received
three
applications.
The
other
two
were
excuse
me.
F
Besides
top
property
and
an
RLS
investments,
we
also
received
an
application,
C
TW
group,
the
purchaser
proposal
to
invest
one
hundred
eighteen
thousand
four
hundred
seventy
one
Torreya
rehab.
This
property
is
a
5-bedroom
3-bath
single-family
home
with
a
detached
garage
and
the
alternative
purchaser
proposes
to
invest.
Eighty
five
thousand
four
hundred
two
rehabbed
as
a
four
bedroom
one
and
a
half
bathroom
single-family
home
with
a
detached
garage
notification,
was
provided
to
the
Cleveland
Neighborhood
Association
on
July
13.
F
Although
the
neighborhood
supported
the
RLS
investment
staff
felt
that
the
property
which
was
is
presently
in
illegal
duplex,
the
scope
of
work
that
top
properties
provided
seem
to
be
more
appropriate
to
making
this
conform
to
be
in
a
single-family
house
again,
and
so
that
was
the
reason
for
our
recommendation
of
different
from
the
neighborhood
recommendation.
I
didn't
see
Harold
green
from
top
property
solutions
here
today,
but
are
there
any
questions
of
me?
I.
A
Don't
see
any
questions
on
this
one.
Thank
you,
I'll
open
the
public
hearing
that,
in
case
somebody
is
here,
would
like
to
speak
to
this
step
forward.
Please
seeing
no
one
stepping
forward
I
will
close
the
public
hearing
and
I
will
move
forward.
The
staff
recommendation
to
sell
the
property
to
top
property
solutions.
Any
discussion
on
the
motion,
all
those
in
favor,
say
aye,
any
opposed,
say
no.
F
Mr.
chair
members
of
the
committee,
we
have
3518
Emerson
and,
as
you
mentioned,
3547
Humboldt
we're
recommending
the
sale
of
these
properties
to
the
greater
metropolitan
corporation
owner,
also
known
as
gimmick
for
their
appraised
values
of
7500.
Each
the
staff
has
marketed
properties,
and
these
are
actually
the
only
offers
that
we
receive
from
these
properties.
I
should
note
that
the
purchaser,
that
is,
gimmick
secured
four
million
dollars
in
new
markets,
tax
credits
to
invest
in
building
10
new
single-family
homes
to
market
exclusively
owner-occupants,
to
make
these
homes
more
affordable.
F
That
four
million
dollars
also
represents
approximately
800,000
in
development
gap,
assistance,
which
is
approximately
70,000
per
home
as
a
right
down
to
make
these
houses
more
affordable
to
own
occupants,
and
also
there
is
no
direct
assistance
from
the
city
Minneapolis.
In
these
projects,
notification
was
provided
to
follow,
Neighborhood,
Association,
August,
6th
and
I.
Believe
even
Spencer
is
here
today
with
us.
Are
there
any
question
that
you
have
of
me?
I.
A
F
Not
aware
of
councilmember
cutting
has
concerns,
but
the
concerns
that
were
raised
last
time.
We
actually
had
an
opportunity
to
talk
with
that
neighborhood
resident
who
was
fortunate
enough
to
get
a
home
through
the
city
of
Minneapolis,
our
green
homes
north,
which
was
a
highly
insulated
and
highly
energy-efficient
home.
It's
cost
prohibitive
to
do
that
too
much
and
what,
as
I
mentioned
earlier,
gimmick
spends
way
more
on
these
houses
and
they
actually
are
able
to
sell
these
houses
for
it
in
North
Minneapolis.
So
we
do
that.
F
C
Had
a
question
but
I
just
wanted
to
note:
I
did
have
an
opportunity
to
talk
to
counsel
in
the
Cunningham,
and
his
concern
was
not
why
one
home
was
Net
Zero
when
another
was
not.
His
concern
is
that
he
feels
that
the
quality
of
construction
with
regard
to
these
homes
will
not
stand
a
long
period
of
time,
and
he
feels
like
probably
rightfully
so,
that
North
Minneapolis
is
getting
their
fair
share
of
homes
that
are
not
going
to
stand
the
test
of
time
and
he
can
point
out
problems.
C
C
He
did
not
say
to
me,
you
know
and
don't
approve
another
land
sale
to
gimmick,
so
I
don't
have
any
intention
of
doing
that
today,
but
I
do
think
that
we
probably
need
to
get
the
folks
that
gimmick
together
with
our
housing
staff,
to
talk
about
this,
because
you
know
it's
a
fresh
set
of
eyes,
a
new
councilmember
who
sees
things
potentially
differently
and
probably
with
a
much
more
positive,
proactive
lens
that
we're
not
desperate.
We
don't
have
to
take
anything
in
North,
Minneapolis
and
I
admire
that
and
respect
it.
C
He
also
like
I,
said:
didn't
stand
in
the
way
of
the
last
land
sale
that
required
an
early
signing,
so
that
actually
meant
it
was
important
to
someone
but
I
think
going
forward.
We
have
to
think
about
that
and
I
think
it
would
be
worth
someone
talking
to
him.
It
wouldn't
be
right
for
me
to
have
had
this
conversation,
not
bring
it
up
today.
Councilmember.
F
Goodman,
just
an
anecdotal
note
for
for
all
the
councilmembers
in
1982
I
had
the
opportunity
to
purchase
my
first
home
through
gimmick
and
it
has
held
up
for
the
test
of
time.
It's
still
energy
efficient
after
more
than
35
years.
So
we
we
appreciate
the
opportunity
that
we
had
to
work
with
gimmick
all
those
years
ago
and.
G
A
H
Very
Lind
and
I
spoke
on
behalf
of
fellow
neighborhood
last
time
we,
this
came
around
along
with
my
co
committee
member
for
the
Housing
Committee
kitty
Stratton.
She
couldn't
be
here
today,
she's
in
New,
York
and
but
I
think.
The
biggest
thing
is
is
that
we
want
to
work
with
gimmick
a
we
don't.
We
share
Phillipe
Cunningham's
councilman's
concern
just
about
the
minimum
standards
that
are
being
used
to
build
houses
in
Minneapolis.
H
G
Hi
I'm
Ethan
Spencer
with
gimmick
and
I
just
wanted
to.
Thank
you
guys
for
taking
this
and
just
mentioned
that
we
definitely
want
to
work
with
staff
and
the
councilmember
and
the
follow
neighborhood
residents
in
order
to
work
to
make
a
better
house
and
a
even
longer
lasting
house
for
North
Minneapolis,
the
new
market
tax
credits
that
we
received.
G
We
closed
on
them,
September,
17th
2018,
and
we
have
one
calendar
year
to
spend
that
money.
The
four
million
dollar,
which
is
partly
why
we
approached
the
city
about
buying
ten
Lots,
and
we
did
have
many
conversations
with
Kitty
Stratton
this
summer.
That
was
the
person
who
was
here
at
the
last
meeting
who's,
not
here
now
and
definitely
recognized
their
concerns.
I
want
to
continue
this
conversation.
It's
just
really
hard
to
implement
at
this
time,
but
for
all
of
our
future
projects.
G
A
I
appreciate
that,
hopefully
you
can
reach
out
to
him
in
the
next
few
days
to
something
there
can
be
some
conversations.
Anybody
else
here
to
speak
on
this
matter.
Seeing
no
one
I
will
close
the
public
hearing
any
comments
or
questions
on
I.
Don't
I'll
move
forward
the
staff
recommendation
for
the
tool
and
sales
35:18
Emerson
and
35:47
Humboldt
Avenue
North
to
greater
metropolitan
Housing
Corporation
discussion
on
that
councilmember
Ellison
I
didn't.
B
Don't
want
him
sitting
in
another
council
meeting
feeling
like
a
little
blindsided
by
you
know
this
kind
of
flying
through
committee
he's
not
on
the
committee,
and
so
it
would
be
good
for
for
him
to
walk
into
that
next
council
meeting
feeling,
like
he's,
been
able
to
have
a
real
conversation
with
with
you
all
about
about
these
land
sales,
because
he's
trying
to
represent
his
we're
all
trying
to
represent
Awards
as
best
as
we
can.
So
that's
it
I
think.
A
That's
a
good
point
too.
We
also
remember
item
10,
which
we
moved
forward
without
recommendation
in
large
part,
because
if
I
guess,
the
gimmick
is
also
includes
on
the
list
there
so
that'll
be
really
important
that
we
try
to
resolve
that
and
I'll
take
it
upon
myself
to
make
sure
to
reach
out
to
councilmember
Cunningham
and
let
him
know
this
is
coming
forward.
Any
other
discussion
on
the
motion
and
all
those
in
favor,
please
say:
aye
Napoli's,
please
say
no!
A
I
Good
afternoon
mr.
chair
council,
members,
I'm
Marc
Winkle,
hey
the
director
of
development
finance
in
the
finance
department.
As
all
of
you
are
aware,
tax
increment
financing
in
the
state
of
Minnesota
is
governed
by
state
statute
and
specifically,
what's
known
as
the
tip
act.
The
TIF
Act
requires
that
most
of
the
tax
increment,
that's
generated
by
TIF
districts,
must
be
spent
within
the
geographic
boundaries
of
the
tip
district.
However,
a
certain
portion
can
be
spent
outside
the
boundaries
under
certain
restrictions.
That's
typically
referred
to
as
TIF
cooling.
I
I
This
has
come
from
a
small
collection
of
TIF
districts
and
the
money
is
actually
appropriated
through
the
city's
normal
budget
process
from
2011
to
2018.
Just
under
19
million
dollars
in
TIF
was
cooled
to
the
affordable
housing
trust
fund
and
awarded
to
various
projects.
Now
the
city's
consolidated
TIF
district,
this
is
the
city's
largest
TIF
district
was
established
by
special
legislation
passed
back
in
2008,
and
it
does
not
it's
not
subject
to
the
normal
restrictions.
I
Before
eligible
uses
are
as
follows:
the
first
is
that
the
city
must
reimburse
or
send
back
about
a
third
of
the
increment
to
the
county.
It's
their
portion
and
the
county
really
is
not
participating
in
this
particular
tip
district.
The
second
eligible
uses,
administrative
costs,
city
and
county
administrative
costs.
A
relatively
small
amount
what's
left
is
needs
to
be
spent
in
two
major
categories.
This
was
the
impetus
behind
the
special
legislation,
the
first
of
which
is
target
centered
debt
service
and
the
second
of
which
is
neighborhood
revitalization
purposes
now.
I
Target
center
debt
service
refers
to
debt
service,
principal
and
interest
payments
on
the
2009
Target
Center
refunding
bonds
that
refunded
the
original
acquisition
of
the
building.
This
is
not
the
more
current
Target
Center
bonds
for
the
renovation,
so
this
is
for
the
old
bonds
and
currently
there's
about
36
million
dollars
of
outstanding
2009
Target
Center
bonds.
The
second
category,
neighborhood
revitalization
purposes-
is
not
defined
in
the
special
legislation.
I
So
therefore,
it's
up
to
the
City
Council
to
define
what
that
means
from
2011
to
2016
the
City
Council
defined
that
term
to
me
to
be
operations
and
programs
of
NCR,
and
so
that's
where
a
certain
amount
of
money
went
during
that
time
period.
Then
in
2017
the
City
Council
expanded
the
definition
to
include
a
little
over
nine
million
dollars
in
NRP
repayments
that
went
to
back
to
neighborhoods.
More
more
recently,
the
definition
has
been
expanded
to
include
about
a
million
dollars
for
the
navigation
Center.
I
It
was
last
month
and
the
attached
resolution
here
expands
the
definition
further
to
include
programs
designed
to
alleviate
the
shortage
of
housing
per
persons
up
low
and
moderate-income
anywhere
in
the
city,
so
basically
affordable,
housing,
city
finance
staff
recently
updated
our
projections
of
tax
increment
that
could
be
available
for
affordable
housing
in
2019
through
2027,
we
looked
at
twelve
different
tip
districts
that
had
some
capacity
and
ten
of
those
districts
need
to
have
their
TIF
plans
modified.
Those
are
the
ten
modifications
that
are
attached
to
the
RCA.
I
I
I
Gonna
say
to
have
it
in
front
of
if
it's,
okay,
all
right,
I,
wasn't
sure
if
you
did
or
not
so
yeah.
The
first
column
of
numbers
is
the
current
maximum
amount
in
the
TIF
budget,
and
this
is
just
for
affordable
housing.
So
that
totals
as
you
can
see,
22
point
seven
million.
Approximately
the
next
column
is
shows
the
increase
in
the
TIF
budget
for
affordable
housing.
So
here's
what
we're
adding
to
each
of
them
a
total
of
57
point,
2
million
dollars
and
you'll
notice.
I
The
amount
that's
being
added
varies
from
a
very
small
number.
131
thousand
all
the
way
up
to
very
large.
The
largest
number
is
twenty
point:
nine
million
for
the
consolidated
tip
district
and
I'm
going
to
come
back
and
explain
where
that
number
came
from
in
just
a
second.
Let
me
walk
through
the
rest
of
the
the
table.
So
the
next
column
is
the
revised
maximum
amount.
Seventy
nine
point:
nine
million
dollars
just
about
80
million.
I
Then
the
next
column
shows
how
much
has
previously
been
appropriated
so
that
money
has
been
allocated
and
awarded
to
various
projects.
And
then
the
last
column
shows
you.
The
potential
future
appropriations
that
that
might
be
made
in
2019
through
2027
that
nine
year
period,
if
this
increment,
that
we
are
projecting
actually
materializes.
I
I
The
current
tip
budget,
however,
this
summer,
a
memo
from
the
county
attorney's
office
indicated
that
they
had
interpreted
it
interpreted
the
MOU
to
mean
the
cap
only
applied
if
the
city
had
expanded
the
boundaries
of
the
TIF
district,
and
we
have
not
done
that
and
we
have
no
plans
to
do
that.
So
they
concluded
the
cap
did
not
apply
and
staff
in
the
City
Attorney's
Office
has
confirmed
that
that's
their
opinion
as
well.
I
So
we
reran
the
projections
and
we
came
up
with
an
additional
51
million
dollars
that
we
think
can
be
generated
by
this
district.
It
was
going
to
be
potentially
hitting
the
cap
in
mid
2019
and
now,
if
we
can
collect
all
the
way
to
the
end
of
2020,
59
million
dollars
more
or
51
million
dollars
more
excuse
me
now
remember
we
have
to
return
a
third
of
that
back
to
the
county
and
pay
some
a
little
administrative
costs.
I
So
really
the
net
number
is
approximately
34
million.
So
that's
what
we're
sort
of
dealing
with
and
then
the
question
becomes.
How
does
the
council
want
to
split
34
million
dollars
between
the
two
remaining
categories,
which
our
target
senator
debt
service
and
neighborhood
revitalization
purposes?
So
in
this
particular
modification,
the
city
finance
department
is
recommending
of
that
total
13
million
dollars
be
allocated
to
target
center
debt
service.
I
That's
what
would
be
needed
to
pay
those
bonds
off
entirely
and
then
at
that
point
there
would
be
no
need
for
a
city
levy
for
incident,
starting
in
20,
21,
22
23,
for
that
particular
bond
issue
which
extends
out
beyond
2020.
So
if
you
take
34
million
and
we're
going
to
allocate
13
of
it,
you
know
that's
approximately
38
percent
of
it.
It's
a
Target
Center
debt
service
that
leaves
the
other
62
percent
or
twenty
point:
nine
million
dollars
for
neighborhood
revitalization
purposes,
and
the
mayor
wishes.
I
I
Then
I
would
just
mention
a
couple
other
things
as
I
mentioned
previously,
these
modifications
did
not
appropriate
any
money
for
affordable
housing.
These
are
maximum
numbers
as
tip
materializes
in
the
future
years,
money
will
be
appropriated
for
affordable
housing
or
any
of
the
other
eligible
purposes
through
the
normal
city
budget
process,
and
then
I'd
also
like
to,
and
just
by
mentioning
that
we
received
comments
on
these
modifications
from
poor
neighborhood
groups.
I
The
Elliot
Park
neighborhood,
incorporated
these
calhoun
community
organization,
cedar
isles
d,
neighborhood
association
and
citizens
for
a
Loring,
Park,
community
and
I
believe
those
letters
and
emails
were
forward
to
all
of
you.
Mr.
chair
with
I,
think
that
concludes
my
presentation.
I'd
be
happy
to
answer
any
questions.
C
C
C
C
C
To
make
sure
everyone
knows
that,
because
I
think
the
neighbors
have
been
bringing
this
up,
neighborhoods
have
been
bringing
this
up
and
we've
kind
of
ignored
that
what
they're
saying
there's
some
truth
to
it,
and
there
is
some
truth
to
it.
It's
about
making
a
choice,
not
about
half
the
money
for
one
and
half
the
money
for
the
other,
some
of
the
money
for
some
of
it
and
some
for
the
other.
A
That's
not
exactly
what
I've
met
in
the
staff
report
that
says
these
modifications
do
not
appropriate
any
future
tip
revenue
for
affordable
housing,
as
t.I
revenue
becomes
available
in
future
years.
These
funds
may
be
appropriated
by
the
City
Council
to
the
affordable
housing,
trust
fund
or
other
eligible,
affordable
housing
programs
through
the
normal
city
budget
process.
Each
year
right.
C
A
I
Mr.
chair,
what
it's
doing
is
redefining
what
neighborhood
revitalization
purposes
means
it's
expanding
and
to
include
affordable
housing
and
then
in
the
budget.
It
is
allocating
in
the
budget.
Remember
this
is
a
not
to
exceed
number
it's
not
an
appropriation,
but
it's
saying
if
it
materializes
the
plan
has
authorized
twenty
point:
nine
million
dollars
for
affordable
housing.
Now,
if,
during
the
normal
budget
process,
the
city
council
decides
they
want
to
use
it
for
a
different
purpose,
they
can
at
that
point
change.
I
C
Chair
said
only
a
simple
amendment
to
the
TIF
plan
isn't
like:
we
can
just
bring
it
up
in
a
regular
meeting.
That's
not
noticed
and
sent
out.
Is
it
and
the
reason
we're
here
today
and
we're
in
a
public
hearing
and
why
everyone
else
got
a
45-day
review
is
because
we're
making
a
modification
to
the
TIF
plan,
isn't
that
would
have
to
go
through
in
order
to
make
it
for
change?
Mr.
I
K
K
I
mean
there's
some
other
yet
to
be
contemplated
definition
which
no
one's
even
discussing
or
have
been
brought
up
in
conversation.
But
theoretically,
if
we
were
to
go
there,
those
parameters
would
need
to
be
addressed
through
the
process
that
you
just
described,
but
current
activities
that,
as
we
understand
them,
would
not
need
to
be
changed
and
just
to
reinforce
council
chairman
Gordon's
point.
This
is
a
not
an
allocation
per
se.
It
is
a
enabling
statement
period.
I
Yeah,
it
is
correct,
yes
and
I
should
just
you
know,
further
clarify
if
I
haven't
already
that
none
of
these
actions
change
the
existing
definition
or
the
existing
purposes
as
NCR
number
one
and
RP
repayments
number
two.
Those
are
obligations
that
are
being
shown
going
out
through
2020,
so
it
doesn't
change
that
this
is
just
dealing
with
this
additional
revenue
that
we
have,
you
know
discovered
you
might
say,
but.
K
To
reinforce
what
comes
Marc
Goodman
has
stated,
you
don't
take
these
actions
if
there
aren't
intentions
and
there's
already
intentions
on
the
books
in
terms
of
its
use.
So
we
should
be
aware
of
that.
Intention
is
very
clearly
outlined
as
well,
which
would
be
the
either/or
that
has
been
raised
by
councilmember
Goodman
and
her
constituents
council
member.
L
Streeter
civic
question:
can
we
hold
off
on
making
that
expansion
until
we're
actually
talking
about
the
allocation
of
money?
It
sounds
like
I'm
hearing.
We
could
just
because
the
the
neighborhoods
are
meeting
right
now,
they're
coming
up
with
their
neighborhoods
2020
plan
there.
It's
a
little
premature
I
think
they'll
be
very
nervous
that
even
if
this
is
an
allocation
of
money,
that
it
is
being
the
definite
is
expanded
and
could
it
go
that
way.
I
Mr.
chair,
councilmember,
shorter
I,
think
I
think
you
could,
but
not
for
very
long,
though
you
know
in
the
2019
mayor's
proposed
budget
is
ten
point:
six
million
dollars
in
TIF
from
the
consolidated
TIF
district.
So
this
plan
amendment
that
allows
for
some
amount
of
affordable
housing
really
needs
to
go
through
before
that
budget
is
approved.
Now
it
doesn't
have
to
be
the
entire
20
point,
nine
million
dollars,
but
it
has
to
be
at
least
presumably
ten
point.
Six.
C
Perfect
so,
under
the
two
headings
it
says,
increase
in
TIF
budget,
but
that
that
really
means
diversion
from
the
general
fund
right
because
I
mean
basically,
the
increase
in
the
TIF
budget
comes
from
somewhere
and
if
we
so
we're,
not
really
increasing
a
budget
with
money.
We
don't
have
that's
really
money.
C
I
K
Just
a
comment:
moving
forward
and
I
I
just
use
this
historical
example
for
illustrative
purposes,
not
to
say
it's
recommendable,
but
these
two
initiatives
are
not
necessarily
uses
are
not
as
incompatible
as
a
matter
of
fact.
An
RP
had
a
set-aside
through
its
own
program
with
community
groups
specifically
identified
for
affordable
housing
and
I
just
know
in
my
award.
Some
great
projects
happen
through
that
process.
So
again
that
recommending
that
specific
direction,
but
just
knowing
that
these
things
aren't
necessarily
incompatible
and
could
be
thoughtfully
integrated,
moving
forward
just
as
a
thought
process.
A
Just
note
that
I'm
intrigued
by
the
concept
myself
so
I
appreciate
you
bringing
that
up.
I,
don't
see
any
other
questions
or
comments
up
here
we
have
to
have
our
public
hearing
for
this
before
we
can
vote
on
it
and
I'm,
hoping
that
maybe
some
people
came
to
speak
to
us
about
this,
so
I'm
going
to
open
the
public
hearing
and
invite
anyone
who
would
like
you
to
come
forward
to
talk
about
the
tax
increment
financing
plan,
modifications.
A
Well,
maybe
committee
members
covered
it
well,
I
guess,
and
the
report
was
so
excellent
that
we
don't
have
any
comments.
We
did
get
those
letters
and
I
think
they
were
very
useful
and
informative
and
I
appreciated
that
all
right
is
there
any
then
I'll
close
the
public
hearing.
Is
there
any
other
discussion
on
this
I'm
prepared
to
move
the
staff
recommendation
so
on
that
motion,
all
those
in
favor
say
aye
any
opposed,
say
no.
That
motion
carries
and
then
we'll
move
on
to
our
to
discussion
items.
A
M
You
chair
Gordon
committee
members,
I,
am
Angie
scaled
I'm
with
the
cpad
housing,
residential,
Finance,
Group
and
I'm
here
today
to
present
this
year's
recommendations
for
allocation
of
9%
long
come
housing,
tax
credits
in
the
city
of
Minnie
ordinarily,
our
new
tax
credit
program
coordinator,
Amy
Geisler,
would
be
here
for
this
presentation,
but
she
had,
unfortunately,
a
family
matter.
She
had
to
attend
to
so
I'm
going
to
step
in
and
help
keep
this
important
process
moving
forward.
M
As
you
know,
the
nine
percent
housing
tax
credit
program
is
a
federal
program
administered
by
the
IRS,
which
provides
a
reduction
and
federal
tax
liability
to
investors
and
qualified
low-income
rental
housing.
Investors
receive
an
annual
credit
for
ten
years
and
in
exchange
for
that,
they
make
an
equity
investment
that
roughly
equates
to
70%
of
the
project's
total
development
cost.
These
projects
must
comply
with
the
federally
imposed
rent
and
income
restrictions
from
a
minimum
of
30
years.
M
The
first
step
in
this
annual
allocation
process
is
the
adoption
of
our
qualified
allocation
plan
or
QEP
and
our
tax
credit
procedural
manual,
which
establishes
project
priorities
and
scoring
criteria
for
this
program.
These
documents
went
through
a
community
review
period
and
a
public
hearing
last
spring
and
were
adopted
by
the
City
Council
last
June.
M
This
is
a
highly
competitive
process.
This
year
the
city
has
just
over
1.5
million
dollars
and
9%
tax
credits
available,
and
we
received
seven
applications
requesting
a
total
of
six
point:
eight
million
dollars
in
credits,
the
applications
were
reviewed
and
scored
according
to
the
qualified
allocation
plan.
I
just
mentioned
for
this
year,
and
the
scoring
results
are
included
as
an
attachment
to
your
report.
M
The
third
highest
scoring
project
is
amber
apartments,
which
is
recommended
to
receive
the
balance
of
this
year's
allocation
of
nine
eighty-three
thousand
four
hundred
and
seventy
five
dollars
and
credits,
and
that
will
position
them
to
receive
the
balance
of
their
needed
credits
in
next
year's
rounds.
Both
of
the
recommended
projects
are
summarized
in
the
report
and
attachments
and
I
can
answer
any
questions
that
the
committee
have.
A
Maybe
I'll
ask
a
question
about
the
Paris
development
project.
I
know
that
Bayon
scored
below
amber.
They
also
got
Affordable
Housing
Trust
Fund
dollars,
I'm
wondering
what
they
or
the
other
projects
could
do
to
position
themselves
next
year
or
I'm,
assuming
that
the
Paris,
affordable,
housing
trust
fund
money
isn't
going
to
be
enough
to
complete
the
financing
for
that
entire
project.
A
I
guess
and
I'm
I
guess
I'm
wondering
if
you
would
have
any
recommendations
or
suggestions
for
how
they
could
come
back
next
year
and
I
think
think
they
have
some
concern
that
they
didn't
get
any
tax
credits
this
year
that
somehow
that's
gonna
put
them
out
of
the
gonna,
hurt
them
next
time
and
I'd
like
you
to
say
yes
or
no,
that's
true.
Okay,.
M
A
couple
so
I'll
take
that
question.
First
cuz
its
freshest
in
my
mind
there
there
are
no
scoring
criteria
in
the
QAP
scoring
that
relate
to
whether
they
there
is
or
is
not
an
existing
allocation
of
credits,
so
that
does
not
affect
a
partial
location,
does
not
affect
your
future
allocations,
one
way
or
another
as
it
pertains
to
scoring
in
general.
This
is
a
very
transparent
process.
We
publish
all
of
the
scoring
criteria
and
we
publish
all
of
the
scores
that
each
of
the
projects
that
come
in
received
on
an
annual
basis.
M
We
try
to
be
very
transparent
about
that.
We
are,
as
you
mentioned,
very
supportive
of
the
Paris
project
and
when
my
colleague
Kari
comes
up
next
and
talks
about
the
trust
fund
recommendations,
you
will
see
that
we
are
recommending
their
full
award
for
the
trust
funds
in
this
round,
and
we,
of
course,
always
try
to
make
ourselves
available
to
work
with
any
applicant
about
strengthening
strengthening
their
projects
on
a
year-to-year
basis.
M
As
I
mentioned,
this
is
a
highly
competitive
process
and
we
don't
always
know
what's
going
to
come
in
from
year
to
year,
so
we
do
the
best
that
we
can
to
give
the
best
advice
that
we
can,
and
it
really
just
depends
on
how
many
different
priorities
a
project
hits
in
terms
of
what
their
overall
score
scoring
capacity
is
from
year
to
year.
Well,.
A
K
M
D
A
C
Approval
the
staff
recommendation
I
would
like
to
make
a
couple
of
comments
on
it.
The
Paris
project
is
in
my
ward,
as
is
the
Lydia
project,
is
in
my
ward
and
I
would
have
liked
to
have
seen
all
the
projects
in
my
ward
get
funding,
but
we
don't
have
enough
money
to
be
able
to
do
that
and
I
wish
we
did,
but
we
don't.
There
were
six
projects
on
the
nine
percent
list
and
two
could
get
funded.
C
The
other
thing
I
just
want
to
point
out,
is
unlike
the
affordable
housing
trust
fund,
where
there's
probably
some
leeway
for
council
members
to
weigh
in
and
make
some
changes
in
the
outcome.
The
qap
is
a
federal
guideline
that
we
join
in
with
the
city
of
st.
Paul
and
approving,
and
we
don't
have
the
ability
actually
to
manipulate
the
qap
process,
the
scores
of
the
score,
and
we
can't
come
in
and
say
we'll
give
them
more
points
here.
C
Give
them
less
points
here,
give
this
group
money
and
don't
give
this
other
group
money
we're
following
federal
guidelines.
I
have
not
really
known
a
time
when
an
applicant
that
didn't
get
9%
tax
credits
actually
suggest
that
we
should
stop
our
process
to
give
them
more
time
to
lobby
us
to
knock
a
different
project
off
or
give
a
different
project
less
resources,
so
they
can
get
more
so
I
feel
like
this
is
an
extremely
competitive
process.
C
Everyone
knows
that
when
they
get
into
the
queue,
that's
why
we
encourage
people
to
go
for
bonds
and
4%
tax
credits
and
not
be
in
the
9%
tax
credit
queue,
but
this
project
it's
more
than
half
of
their
funding.
So
if
they
don't
get
9%
tax
credits,
they
can't
do
the
project,
and
so
they
don't
have
any
other
funding.
That's
part
of
the
problem
with
their
project
to
is,
but
they
don't
have
multiple
sources.
A
N
N
Just
a
quick
reminder:
the
affordable
housing
trust
fund
provides
gap,
financing
for
multifamily
projects
with
10
units
or
more
projects
are
structured.
Thank
you.
Projects
are
structured
as
deferred
loans,
with
affordability
in
place
for
30
years.
The
maximum
award
is
the
lower
of
25,000
per
affordable
unit
or
15%
of
the
total
development
cost,
whichever
is
less
and
in
2018
50%
of
the
area.
Median
income
for
a
family
of
four
is
forty,
seven
thousand
one
hundred
and
fifty
dollars
from
2003
through
the
end
of
2017.
N
N
This
year
the
city
received
16
applications
seeking
a
total
of
23
million
dollars.
All
of
the
applications
were
reviewed
and
evaluated
using
the
established
trust
fund,
underwriting
standards
and
criteria.
It
is
important
to
note
that
score
is
one
component
of
the
evaluations
to
lower-ranking
projects
may
be
funded
over
higher
ranking
projects
based
on
preservation,
priorities,
project
readiness,
other
criteria
that
are
stated
in
the
RFP,
such
as
the
senior
housing
policy,
set-aside,
financial
feasibility,
whether
they
have
support
services
plans,
compliance
with
design
guidelines
and
the
ability
to
secure
funding
from
other
funders
this
year
for
2018.
N
The
trust
fund
has
approximately
ten
point
six
million
available
for
this
round
this
year's
rounds
of
projects.
The
budget
consists
of
four
sources
which
is
CDBG
home
local
funds
and
any
funds
that
may
have
been
relinquished
this
year
and
staff
is
recommending
eight
awards
totaling
the
entire
amount
of
ten
point:
six
million.
This
will
not
leave
any
funds
available
for
a
pipeline
process
until
additional
funds
are
budgeted
during
the
annual
budget
review,
the
eight
projects
being
recommended
are
1
million
950,000
for
the
preservation
and
construction
of
Lydia
apartments.
N
I
have
just
a
quick
few
noteworthy
deliverables.
I'll
mentioned
before
I
conclude
projects
in
this
round
will
create
a
preserve
six
hundred
and
thirty
three
units,
of
which
five
hundred
and
sixty-eight
are
new
construction
and
sixty
five
or
stabilization
or
preservation
units
we
are
creating
or
preserving
ninety
nine
project-based
Section,
eight
assisted
units
and
finally,
forty
six
percent
of
the
total
units
being
developed
by
these
eight
recommended
projects
will
be
affordable
to
resident
at
incomes
of
50%
or
below.
Am
I,
including
70%
17%
at
30%,
am
I
are
below
up.
A
C
A
C
Are
two
projects
in
the
word
that
I
represent
that
I
am
extremely
excited
about?
We've
talked
about
both
of
them
earlier
Paris
apartments,
as
well
as
Lydia
apartments.
Olivia
is
the
first
affordable
housing
project.
I
worked
on
when
I
first
came
to
the
city
council
20
years
ago.
We're
neighbors
had
signs
up
all
over
the
neighborhood
saying
anyone
but
Lisa
we're
not
gonna.
C
Have
this
affordable
housing
in
our
neighborhood,
yet
Beacon
housing
persisted
and
built
about
40
units
of
affordable
housing
in
a
former
nursing
home,
which
has
been
come
so
successful
that
the
neighborhood
was
asking
them
to
do
more
and
the
neighborhood
is
supporting
another
38
units
on
that
site,
as
well
as
a
rehab
of
the
existing
units
on
that
site.
It's
really
exciting,
I,
don't
know,
but
also
with
the
Paris
project.
C
The
Neighborhood
Association
is
supporting
that
as
well
and
just
with
a
few
site
plan,
issues
still
to
be
worked
out,
but
has
strong
support
in
the
neighborhood
and
I'm
glad
to
see
it
got
a
trust
fund
recommendation
today,
but
the
project
that
I
probably
work
the
most
on
and
the
one
that
I
think
is
the
most
important
and
I
know
the
staff
knows.
This
is
what
I
would
call
arts-based
leaf,
which
they
are
now
calling
something
totally
different:
art
space,
north
side,
housing.
C
This
is
a
transformational
project
in
the
Harrison
neighborhood,
which
is
right
almost
on
the
border
of
Harrison
and
Bryn
Mawr.
Both
councilmember
Ellison
and
I
live
within
a
handful
of
blocks
of
this
site
and
I
think
this
is
a
former
industrial
site.
That
is
how
pollution
Romania
word
mediation
issues
and
it's
just
on
the
brink
of
really
helping
turn
this
part
of
town
around
Bassett,
Creek
potentially
could
be
delighted.
This
project
could
result
in
the
elimination
of
a
massive
amount
of
trucking
that
is
immediately
on
the
creek
itself.
C
It's
bringing
in
juxtaposition
arts
to
have
a
really
cool
space
within
the
project.
There
is
also
a
good
amount
of
commercial
associated
with
this
project,
larger
units
for
families,
and
we
just
found
out
today
there'll
be
some
project-based
section,
8
units
as
well,
so
everything
has
really
come
together.
This
is
the
culmination
of
a
massive
amount
of
work
by
art,
space,
art,
space
projects
and
Wellington,
as
well
as
the
city
staff
who
have
really
worked
hard
to
make
this
happen.
C
It's
taken
upwards
of
I
think
three
years
now
and
multiple
council
members
and
mayor's
to
see
this
happen.
So
it
feels
like
this
is
really
the
time
that
this
projects
going
to
move
forward.
The
site
is
already
under
construction
on
the
commercial
portion
of
the
site,
so
I'm
really
excited
about
it.
Affordable
housing
can
be
transformational
in
neighborhoods.
This
project
is
one
of
those,
so
thank
you
for
everyone's
support
of
it.
A
Wonderful
signal
for
their
comments,
then
all
those
in
favor
of
councilmember
Goodman
motion,
please
say
aye.
Okay,
any
opposed,
say.
No.
That
motion
carries
and
thanks
everybody
who
came
for
that
item
and
for
all
the
work
that
you
do.
We
couldn't
invest
in
the
portable
housing
like
we
do
without
our
community
partners.
Now
we'll
go
to
our
last
item
on
the
agenda,
which
is
an
authorizing
step
to
continue
the
analysis
of
the
Portland
at
third
apartments.
A
J
Afternoon,
mr.
chair
and
committee
members-
I
am
the
recommendation.
I
brought
to
you
today
is
to
authorize
staff
to
complete
the
analysis
and
needed
to
determine
if
tax,
increment,
financing
or
TIF
is
needed
to
fill
the
affordability
gap
in
the
port.
Third,
at
Portland
apartments,
affordable
housing
project.
To
give
you
a
sense
of
what
we're
we're
talking.
J
Technical
assistance-
oh
there,
it
is
oh
wow
and
it's
actually
clear
great
the
project
site.
There
is
identified
in
red,
it's
the
block,
bordered
between
Washington
and
third
and
then
fifth
and
Portland,
and
there's
the
one
match
there
at
Washington
and
fifth,
that
you'll
notice
will
remain
as
as
is
today,
and
the
remainder
of
the
site
is
port.
A
part
of
the
larger
redevelopment
that
Sherman
and
Associates
is
undertaking
on
this
large
block
downtown.
J
So
kind
of
walk
you
through
those,
as
well
as
noting
and
the
public
benefits
of
the
various
different
components.
So,
first
I
start
with
the
affordable
housing.
They'll
be
90
units
of
affordable
housing
in
the
six
storey
building,
that
is,
wrapping
the
public
parking
ramp,
and
that
is
there
it's
centered
at
the
corner
of
Portland
and
third
and
will
wrap
the
parking
ramp
on
three
sides.
Portland
third
and
fifth,
they
also
were
Sherman-
was
also
notified
just
recently
that
they
will
have
18
project-based
section
8
units
in
this
90
unit.
J
The
second
component
that
I'm
going
to
talk
about
is
today
the
current
fire
state,
Minneapolis
Fire
Department
station.
One
is
at
the
corner
of
Portland
and
3rd.
They
will
be
receiving
a
new
facility,
and
that
is
the
pink
on
the
corner
of
5th
and
3rd
it'll
be
a
two-story
building
with
20,000
square
feet
and
that
will
include
the
apparatus
phase
they'll
be
able
to
increase
their
capacity
from
just
having
a
single
engine.
J
The
the
next
piece
I'll
note
is
the
on
the
corner
of
Portland
and
Washington.
There's
going
to
be
a
market
rate
Tower
that
will
have
over
225
market
rate
housing
units,
and
then
there
in
the
center
is
the
parking
ramp,
that's
wrapped
with
either
the
fire
station
or
affordable
housing
around
it
all
said
there
will
be
five
hundred
and
thirty
thousand
square
feet
of
new
development,
not
including
the
any
of
the
parking
facilities
on
this
on
this
block,
which
today,
as
we've
noted
it
as
we
can
see,
is
surfaced
perking
on.
J
So
there
are
a
lot
of
a
lot
of
things
going
on
it's
a
complicated
project.
This
portion
for
today
is
strictly
for
staff
to
have
authorization
to
do
the
analysis
needed
to
determine
what
the
affordability
gap
is
and
if
TIF
will
work
for
a
funding
source
for
them.
The
market
rate
tower
would
be
within
the
TIF
district
boundaries,
but
would
not
receive
any
of
the
increment,
but
by
allowing
that
to
be
within
the
TIF
district,
you
have
enough
increment
for
there
enough
increment
to
service
alone
for
the
affordable
housing
compulsion
portion.
J
If
it
proves
today,
staff
will
return
to
council
with
you
now
completed
analysis
and
provide
a
recommendation
on
TIF
as
a
source
and
the
TIF
district.
If
approved,
you
might
notice
that
this
is
a
bit
different
than
some
of
the
others
in
that.
If
TIF
is
approved
for
this
project,
it
will
largely
negate
the
need
for
a
large
capital
stack,
which
is
what
we
see
in
most
of
our
typical,
affordable
housing
projects.
A
Thank
you
very
much
for
that
excellent
report
and
those
visuals
I,
don't
see
any
questions
so
I
think
everybody
is
comfortable
based
on
the
presentation,
I'm
happy
to
move
this
to
go
forward
with
our
project
analysis,
authorization
for
this
to
continue
and
also
authorizing
staff,
to
negotiate
the
terms
and
conditions
of
redevelopment
contract
with
Sherman
associates
or
an
affiliated
entity
to
prepare
the
redevelopment
and
TIF
plans
for
the
project.
Subject
to
our
final
future
approval.