2021.06.15 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
REGULAR MEETING
TUESDAY, JUNE 15, 2021
IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Approval of minutes from June 1, 2021 Regular Meeting
4. Public hearing and consideration of a resolution authorizing the sale of an EDA lot at
4741 Welcome Ave. N. for construction of a 4-unit residential building (item continued
from June 1, 2021 meeting)
5. Public hearing and consideration of a resolution authorizing the sale of an EDA lot at
3556 Major Ave. N. for construction of a single family home
6. Consideration of a motion to authorize a drainage and utility easement on the west 10
feet, north 5 feet and east 5 feet of 3556 Major Ave. N.
7. Consideration of a resolution supporting Tax Increment Financing for a multi-family
housing project at 5240 West Broadway
8. Other business *
9. Adjournment *
*Items for which no materials are included in the packet
Page 1 of 3
Minutes of the
Economic Development Authority of the City of Crystal
Regular Meeting
Council Chambers
June 1, 2021
1. Call to Order
President Parsons called the meeting of the Economic Development Authority of the City
of Crystal (EDA) to order at 7:58 p.m.
2. Roll Call
Upon call of the roll, the following members were present: Jim Adams, Brendan Banks,
John Budziszewski, David Cummings, Nancy LaRoche and Olga Parsons.
The following staff were present: Executive Director Anne Norris, Deputy Executive
Director John Sutter and City Attorney Troy Gilchrist.
3. Approval of Minutes
Moved by Commissioner LaRoche (Adams) to approve the minutes from the May 18,
2021 regular meeting. Motion carried.
4. Public hearing and consideration of a resolution authorizing the sale of an EDA lot at
4741 Welcome Ave. N. for construction of a 4-unit residential building
Staff reported that the builder has not yet completed their detailed plans for EDA
consideration. Staff requested that the EDA open the hearing, take any comment, and
then continue the hearing and consideration of the resolution to June 15, 2021.
President Parsons opened the hearing. No persons appeared.
Moved by Commissioner Adams (LaRoche) to continue to June 15, 2021 the public
hearing and consideration of a resolution authorizing the sale of an EDA lot at 4741
Welcome Ave. N. for construction of a 4-unit residential building. Motion carried.
5. Consideration of a Resolution authorizing an application to the Hennepin County
Corridor Planning program for Douglas Drive and West Broadway
Staff presented the purpose of the proposed grant application and requested EDA
adoption of the resolution.
Moved by Commissioner Adams (Budziszewski) to adopt the resolution authorizing an
application to the Hennepin County Corridor Planning program for Douglas Drive and
West Broadway. Motion carried.
Page 2 of 3
6. Potential Tax Increment Financing request for Sand Companies development at 5240
West Broadway
Staff presented information about the potential TIF district and requested EDA discussion
in advance of a potential action item on June 15.
Megan Carr from Sand Companies and Stacie Kvilvang from Ehlers were present to
answer questions from the board.
Because this was a discussion item, no EDA action was necessary.
7. Other Business
Staff provided an update on construction activity and new business openings.
8. Adjournment
Moved by Commissioner Banks (Budziszewski) to adjourn the meeting. Motion carried.
The meeting adjourned at 8:37 p.m.
Page 3 of 3
These minutes of the June 1, 2021 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ____, 20___.
______________________________
Olga Parsons, President
ATTEST:
______________________________
Therese Kiser, Secretary
Page 1 of 3
_____________________________________________________________________
FROM: Dan Olson, City Planner
____________________________________________________________________
TO: Anne Norris, Executive Director (for June 15 meeting)
DATE: June 10, 2021
RE: Continued Public Hearing. Consider adoption of a resolution
approving the sale of 4741 Welcome Avenue North for construction
of a new four-unit residential building
Gernco Construction has submitted a proposal to purchase the lot at 4741 Welcome
Avenue North and construct a four-unit residential building. The EDA tentatively
accepted the proposal at the May 4, 2021 meeting. On June 1 the EDA opened and
then continued the public hearing until June 15 so that the builder could provide
detailed site and building plans necessary for EDA review and approval of the lot sale.
Gernco Construction is a state-licensed residential building contractor with no
enforcement actions.
Attached are builder’s proposal form, site plan, and an illustration of the four-unit
building that would be built on the lot. Since the May 4th EDA meeting, Gernco has
reworked the site plan and building design so that it will now meet the required
minimum setbacks from property lines (Gernco previously believed they would need to
request setback variances). The floor plan for each unit consists of a
kitchen/dining/living room on the first floor with bedrooms on the second floor. Please
see the bottom of page 3 for a description of the building and anticipated timeline for
zoning approvals and construction.
Attachment:
A. Gernco Construction proposal
B. Resolution
EDA Staff Report
Lot Sale – Continued Public Hearing
4741 Welcome Avenue North
Page 2 of 3
Aerial Photo:
Page 3 of 3
Building Element Gernco Proposal
Owned or rented Rented; builder may choose to live in one of the units (but
this will not be mandated)
Number and type of units 4 unit apartment building but will look like townhomes
(each unit will have private entrances/garages but may not
be sold separately)
Building height 2 story
No. bedrooms & bathrooms
(same for all four units)
3 bedrooms on second floor
2 bathrooms on second floor and ½ bathroom on first floor
Size of each floor by unit Basement (unfinished)
Units A & D 546 SF Units B & C 773 SF
First Floor
Units A & D 546 SF Units B & C 773 SF
Second Floor
Units A & D 963 SF Units B & C 1,159 SF
Total square feet:
• Units A & D 2,055 SF (1,509 finished)
• Units B & C 2,705 SF (1,932 finished)
Attached garage size 378-385 SF
Variances requested No
Anticipated Timeline 7/13 - submit UDC appl. (site plan)
8/09 - PC hearing
8/17 - CC action
8/27 - sign development agreement and provide $2,000
earnest money
10/16 – last day to close on lot purchase
2021 or 2022 – begin construction
REQUESTED EDA ACTION (after taking any public comment and closing the
public hearing):
EDA adoption of a resolution approving the sale of the lot at 4741 Welcome
Avenue North to Gernco Construction
Attachment A
Gernco Proposal
exterior
elevations
date 6-3-21
(entry
door)
(lap
siding)
(brick
wall)
(roofing)
(roofing)(roofing)(roofing)
(roofing)
(window)(window)(window)(window)
(window)(window)(window)(window)(window)(window)(brick
wall)
(roofing)
(roofing)
(brick
wall)
(roofing)(roofing)(roofing)
(entry
door)
(window)
(window)
(window)
(patio
door)
(window)
(window)(window)(window)(window)
(brick
wall)
(entry
door)
(lap
siding)
(lap
siding)
(roofing)(roofing)(roofing)
(windows)(windows)(window)
(window)
(brick
wall)(brick
wall)
(window)(window)
(entry
door)
(windows)(windows)
(roofing)(roofing)
(roofing)
east elevation (Welcome Av)
west elevation (alley)
north elevation
south elevation
(brick
wall)
(garage door)(garage door)
(brick
wall)
(garage door)(garage door)
1" = 20' when
printed on 11x17
sheet size
(patio
door)
(window)
(patio
door)
(patio
door)
(lap
siding)
(window)
GRADE NOTE: grade elevation is drawn for a
slab-on-grade building. For a building with a
basement, the grade will be lowered approx 18".
GRADE NOTE: grade elevation is drawn for a
slab-on-grade building. For a building with a
basement, the grade will be lowered approx 18".
GRADE NOTE: grade elevation is drawn for a
slab-on-grade building. For a building with a
basement, the grade will be lowered approx 18".
GRADE NOTE: grade elevation is drawn for a
slab-on-grade building. For a building with a
basement, the grade will be lowered approx 18".
Building Elevations
install
sign
noting
"Unit C in
back",
verify
location
install
sign
noting
"Unit D in
back",
verify
location
date 6-3-21,
rev 6-9-21
12x8 patio
or deck
12x8 patio
or deck
12x8 patio
or deck
12x8 patio
or deck
property
corner
property
corner
property
corner
property
corner
sidewalk
sidewalk
soffit / floor
above
soffit / floor
above
roof above
roof above
(entry door)
(entry door)
(entry door)
(entry door)
1" = 20' when
printed on 11x17
sheet size
neighboring
building
neighboring
building
neighboring
driveway
neighboring
driveway
#4741ALLEY WELCOME
AV NO
NW UNIT
(D)
NE UNIT
(A)
SW UNIT
(C)
SE UNIT
(B)
driveway driveway
sidewalk to curb
sidewalk
sidewalk
sidewalk
sidewalk to curb
power
pole
sidewalk
SITE PLAN NOTES:
~~ Impervious Surface Area = 9580 sq ft
~~ Lot Area = 14,080 sq ft
~~ Impervious Ratio = 68% actual (75% max allowed)
~~ Stormwater Management TBD
~~ Landscape Design TBD
~~ Trash & Recycle Cart Storage TBD
~~ Utility Plan TBD 7'87'74'4
42'42'
4'4
28'8 20'518'18'23'520'618'18'23'48'7'921'534'24'519'534'825'915'1022'725'815'941'11 46'4 46'4 41'8 79'10176'3
176'3
79'1015'104'848'392'8
Site Plan
SW
BASEMENT
22'6 x 24'9
UNEXCAVATED
19'11 x 17'
UNEXCAVATED
9'4 x 4'
UNEXCAVATED
19'11 x 17'
NW
BASEMENT
24'10 x 21'9
UNEXCAVATED
19'11 x 17'
UNEXCAVATED
19'11 x 17'
UNEXCAVATED
9'4 x 4'
NE
BASEMENT
24'10 x 21'9
SE
BASEMENT
22'6 x 24'9
egress
window
and well
egress
window
and well
egress
window
and well
egress
window
and well
DECK
ABOVE
DECK
ABOVE
DECK
ABOVE
DECK
ABOVE
plan north
1/8" = 1'-0" when
printed on 11x17
sheet size
date 6-3-21,
rev 6-9-21
UPUP
UPUP18'18'7'843'88'4'88'8'18'810'44'412'
1'1'
12'4'410'418'8
92'8
4'4 29'12'
1'1'
12'29'4'4
92'8
4'4 4'4
7'818'18'64'48'4'88'8' Basement Floor Plan
Notes:
Mechanical
room
location for
each unit
TBD
Optional
bath rough-
in for each
unit TBD
GARAGE
20'3 x 17'3
LIVING
16'11 x 11'10
GARAGE
20'3 x 17'3
LIVING
22'6 x 14'3
KITCHEN
+ DINING
17'10 x 9'9
MUD +
POWDER
+ STAIRS
6'8 x 17'3
KITCHEN
+ DINING
19'1 x 10'4
ENTRY + STAIRS
18'3 x 7'2
MUD +
POWDER
5'5 x 15'5
1/8" = 1'-0" when
printed on 11x17
sheet size
12x8 patio
or deck
8x12 patio
or deck
8x12 patio
or deck
12x8 patio
or deck
property line
property line
entrance entrance
entranceentrance
plan north
date 6-3-21
DNUP
UP DN 15'104'1179'1115'942'42'48'44'818'18'7'84'4
28'1117'5 17'5
4'4
28'11
First Floor Plan
MASTER BDRM
20'5 x 12'4
CLOSET
4'8 x 8'4
BEDROOM
#3
8'10 x 16'3
MASTER BDRM
13'11 x 17'3
MASTER BATH
12'5 x 6'6
BEDROOM
#2
8'8 x 12'3
BEDROOM
#2
10'2 x 9'11
OPEN
BELOW
17'7 x 3'8
HALL
BATH
7'8 x 8'4
LAUNDRY
5'6 x 8'4
MASTER
CLOSET
7'5 x 7'7
BEDROOM
#3
8'6 x 14'10
CLOSET
5'11 x 6'9
MASTER BATH
20'5 x 4'7
CLOSET
5'3 x 9'11
HALL
BATH
5' x 7'10
LAUNDRY
6'4 x 7'10
(same plan as SW unit,
mirrored)
(same plan as NW unit,
mirrored)
date 6-3-21,
rev 6-9-21
second
floor
plan
plan north
1/8" = 1'-0" when
printed on 11x17
sheet size
roof
below
roof
below
wall belowwall below
DN
DN
92'8 46'4
22'825'848'4Second Floor Plan
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2021 - 04
A RESOLUTION AUTHORIZING THE SALE OF
4741 WELCOME AVENUE NORTH
FOR CONSTRUCTION OF A FOUR UNIT RESIDENTIAL BUILDING
WHEREAS, the Economic Development Authority of the City of Crystal (“the EDA”) is the
owner of 4741 Welcome Avenue North (“the Property”), legally described as:
Lots 3 and 4, except the south 40 feet thereof, Block 2, Twin Lake Addition, Hennepin
County, Minnesota
WHEREAS, the EDA has solicited proposals from builders who desire to purchase the
Property from the EDA and construct thereon a new residential building; and
WHEREAS, the EDA has reviewed and accepted the proposal from Gernco Construction.
NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the sale of the Property to
Gernco Construction.
BE IT FURTHER RESOLVED that the sale shall be completed in accordance with the terms of
the Purchase and Development Agreement in substantially the form on file in City Hall, and
that the President and Executive Director are hereby authorized to sign said Agreement and
other documents required to complete the sale of the Property to Gernco Construction.
Adopted this 15th day of June, 2021.
____________________________________
Olga Parsons, President
____________________________________
Anne Norris, Executive Director
Attachment B
Page 1 of 3
_____________________________________________________________________
FROM: Dan Olson, City Planner
____________________________________________________________________
TO: Anne Norris, Executive Director (for June 15 meeting)
DATE: June 10, 2021
RE: Public Hearing. Consider adoption of a resolution approving the sale
of 3556 Major Avenue North for construction of a new single-family
home
Great Buy Homes has submitted a proposal to purchase the lot at 3556 Major Avenue North
for the asking price - $25,000. The EDA gave tentative acceptance to the lot sale at their
May 18, 2021 meeting. The site plan and home design have not changed since then, except
for the removal of the 2-foot cantilevered floor on the second level, which reduces its area
from 968 to 924 sq. ft (the number of bedrooms and bathrooms on that level will not
change).
The lot was discounted in the Request for Proposal (RFP) since the builder will need to
install sewer and water service connections. Great Buy Homes is a state-licensed
residential building contractor with no enforcement actions and considerable experience in
home construction.
Attached are builder’s proposal form, site plan, and an illustration of the two-story home that would
be built on the lot. The site plan reflects approval of a setback variance on June 15, 2021 to the
front and north sides of the home (City Council agenda item 7.4). New drainage and utility
easements will also be dedicated on the property by the EDA prior to the lot sale (EDA agenda
item 6). The builder does not yet have a buyer for the home, which would be finished as follows:
➢ Main floor. Approximately 924 square feet on the main level with an open living-
dining-kitchen area, one bedroom/den and a bathroom.
➢ Second floor. Approximately 924 sq. ft on the second floor with three bedrooms and
two bathrooms.
➢ Lower level. Approximately 730 unfinished sq. ft. on the lower level, with an option to
have it finished with an additional bedroom, a bathroom, and family room.
➢ Garage: A two-car detached garage would be accessed from the alley.
Attachments:
A. Great Buy Homes proposal
B. Resolution
EDA Staff Report
Lot Sale – Public Hearing
3556 Major Avenue North
Page 2 of 3
Site Location and 2020 Aerial Photo:
Page 3 of 3
REQUESTED EDA ACTION: EDA adoption of a resolution approving the sale of the lot at
3556 Major Avenue North to Great Buy Homes.
If the lot sale is approved the builder is planning to close on the property in early July and
finish construction of the new home by the end of 2021.
ATTACHMENT A
Proposal from Great Buy Homes
f:\jobs\9461 - 9480\9479 - woodland homes\cad c3d\survey\9479.001 variance exhibit.dwgSave Date:05/19/21Revisions:S E C. 6S E C. 7
19REVISIONS BY
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39
49
59
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2021 - 05
A RESOLUTION AUTHORIZING THE SALE OF
3556 MAJOR AVENUE NORTH
FOR NEW HOUSE CONSTRUCTION
WHEREAS, the Economic Development Authority of the City of Crystal (“the EDA”) is the
owner of 3556 Major Avenue North (“the Property”), legally described as:
Lot 30, Block 3, Woodland Homes, Hennepin County, Minnesota.
WHEREAS, the EDA has solicited proposals from builders who desire to purchase the
Property from the EDA and construct thereon a new single family house; and
WHEREAS, the EDA has reviewed and accepted the proposal from Great Buy Homes.
NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the sale of the Propert y to
Great Buy Homes.
BE IT FURTHER RESOLVED that the sale shall be completed in accordance with the terms of
the Purchase and Development Agreement in substantially the form on file in City Hall, and
that the President and Executive Director are hereby authorized to sign said Agreement and
other documents required to complete the sale of the Property to Great Buy Homes.
Adopted this 15th day of June, 2021.
____________________________________
Olga Parsons, President
____________________________________
Anne Norris, Executive Director
Attachment B
EASEMENT DEDICATION FOR 3556 MAJOR AVENUE NORTH
PAGE 1 OF 2
___________________________________________________________________________
FROM: Dan Olson, City Planner
___________________________________________________________________________
TO: Anne Norris, Executive Director (for June 15 Meeting)
DATE: June 10, 2021
RE: Easement dedication for EDA property at 3556 Major Avenue North
A. BACKGROUND
The EDA is asked to approve the dedication of a drainage and utility easement for the
property it owns at 3556 Major Avenue North. The EDA is in the process of selling this
property for a new single-family home.
Attachment:
A. Easement document
BACKGROUND
The EDA is proposing to sell the vacant lot at 3556 Major Avenue North to Great Buy Homes
(see agenda item 5). Since the lot was platted in 1911 without any drainage and utility
easements, the EDA is asked to approve the dedication of easements along the adjacent
streets and alley to ensure space for current and future utility installation and repair.
The easements to be dedicated are:
▪ 10’ wide easement along the front (Major Avenue) property line
▪ 5’ wide easement along the north (36th Avenue) and east (alley) property lines
Please see the illustration on the following page.
EDA STAFF REPORT
Easement dedication for EDA property
EASEMENT DEDICATION FOR 3556 MAJOR AVENUE NORTH
PAGE 2 OF 2
B. REQUESTED ACTION
Motion to approve the dedication of a drainage and utility easements along the
westerly 10 feet, northerly 5 feet and easterly 5 feet of 3556 Major Avenue North.
Torrens
(Certificate No. 1098432)
EASEMENT
THIS INSTRUMENT is made by Economic Development Authority of the City of Crystal,
a Minnesota public body corporate and politic, (“EDA”) in favor of the City of Crystal, a Minnesota
municipal corporation (“City”).
Recitals
A.EDA is fee owner of the following described property in Hennepin County, Minnesota (the
“Property”):
Lot 30, Block 3, Woodland Homes, Hennepin County, Minnesota
B.EDA desires to grant to the City an easement over the portion of the Property legally
described in the attached Exhibit A (“Easement Area”), according to the terms and conditions
contained herein.
Terms of Easement
1.Recitals and Exhibits. The above recitals, and the attached exhibits, are incorporated in and
made part of the easement agreement.
2.Grant of Easement. For good and valuable consideration, receipt of which is acknowledged
by EDA, EDA grants and conveys to the City the following easement on the Property: A perpetual,
non-exclusive easement for utility and drainage purposes over, under, across and through the
Easement Area as legally described in the attached Exhibit A.
2.Scope of Easement. The perpetual utility and drainage easement granted herein
includes the right of the City, its contractors, agents, and employees to enter the Property at all
reasonable times for the purpose of locating, constructing, reconstructing, operating,
maintaining, inspecting, altering, and repairing storm sewer, sanitary sewer and water facilities
and ground surface drainage ways in the described Easement Area. The easement granted herein
also includes the right to cut, trim, or remove from the Easement Area trees, shrubs, or other
vegetation as in the City's judgment unreasonably interfere with the easement or facilities of the
City, its successors or assigns.
3.Warranty of Title. The EDA warrants it is the owner of the Property and has the right,
title and capacity to convey to the City the easement herein.
Attachment A
4. Environmental Matters. The City shall not be responsible for any costs, expenses,
damages, demands, obligations, including penalties and reasonable attorney's fees, or losses
resulting from any claims, actions, suits, or proceedings based upon a release or threat of release
of any hazardous substances, pollutants, or contaminants which may have existed on, or which
relate to, the easement area or Property prior to the date of this instrument.
5. Binding Effect. The terms and conditions of this instrument shall run with the land and
be binding on the EDA, its successors and assigns.
Dated this 15th day of June 2021.
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL, EDA
By: _____________________________ By: _____________________________
Its President Its Executive Director
State of Minnesota, County of Hennepin
The foregoing was acknowledged before me this _______ day of ________________ 2021,
by Olga Parsons and Anne L. Norris, the President and Executive Director of Economic
Development Authority of the City of Crystal, a public body corporate and politic under the laws
of Minnesota, on behalf of the public body corporate and politic.
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK)
____________________________________
Signature of person taking acknowledgment
THIS INSTRUMENT DRAFTED BY:
City of Crystal
4141 Douglas Dr N
Crystal, MN 55422
EXHIBIT A
Legal Description of Easement Area
The westerly ten (10) feet, the northerly five (5) feet, and the easterly five (5) feet of Lot 30,
Block 3, Woodland Homes, Hennepin County, Minnesota.
Page 1 of 4
__________________________________________________________________________
FROM: John Sutter, Community Development Director
__________________________________________________________________________
DATE: June 10, 2021
TO: Anne Norris, Executive Director (for June 15 EDA meeting)
SUBJECT: Consider a resolution supporting Tax Increment Financing for a multi-
family housing project at 5240 West Broadway
Sand Companies is proposing to build an apartment building at 5240 West Broadway on a
1.75-acre site comprised of four vacant lots (5232-5256 West Broadway):
EDA STAFF REPORT
Sand Companies - 5240 West Broadway
Tax Increment Financing - Conditional Support
Page 2 of 4
Preliminary building information (subject to change as the project is refined):
58 units in a 4-story building with a basement parking garage
The units would have 1-4 bedrooms (but 70% of the units would have 2-3 bedrooms)
46 units would be affordable at 60% of area median income; 12 would be affordable at 30%
The largest source of funds would be equity from federal Low Income Housing Tax Credits
(LIHTC) which are awarded by the Minnesota Housing Finance Agency (MHFA). To be
considered for 2022 construction, Sand Companies must submit their LIHTC application to
MHFA by July 15 and the tax credit awards would be announced in late 2021.
Sand Companies estimates that the preliminary sources, uses and financing gap for this
development are as follows:
$16,456,785 Sources, including LIHTC equity but no TIF or other local assistance
$17,503,846 Uses, including $195,000 for public realm improvements along West Broadway
$ 1,047,061 Financing Gap
While preparing their application, Sand also noted that MHFA has revised its scoring to award
points for projects with local financial assistance:
Page 3 of 4
To help close the anticipated financing gap and maximize the project’s LIHTC score at MHFA,
Sand Companies is asking the EDA to adopt a resolution supporting the use of Tax Increment
Financing (TIF) for the project. The EDA’s TIF consultant, Ehlers and Associates, has
prepared a very preliminary TIF analysis, which is attached.
TAX INCREMENT FINANCING SCENARIOS
The maximum duration of a housing TIF district is 26 years. Based on other projects, Ehlers
suggests that a 15-year pay-as-you-go (“paygo”) note would be typical for this type of project,
and for comparison, staff also looked at a 10-year duration:
Summary of 15-year TIF scenario:
$795,000 paygo note (present value)
4.54% of the total project cost of $17,503,846, or just enough to get 8 MHFA points
There would still be a $252,000 gap the developer would need to fill
Summary of 10-year TIF scenario:
$550,000 paygo note (present value)
3.14% of the total project cost of $17,503,846, or just enough to get 6 MHFA points
There would still be a $497,000 gap the developer would need to fill
The main advantage to using TIF is that other agencies’ tax increment (county, etc.) would
also be used for the project.
Please note that the developer has not submitted a detailed proforma, but this would be
required when they submit a formal TIF application for staff, Ehlers and EDA review prior to
any city action to create a TIF district.
In the meantime, the developer needs to know whether they can include a proposed TIF
district in their LIHTC application to MHFA. The proposed resolution is attached. It is based on
a similar resolution from the City of Plymouth in 2018. Please note that the resolution states a
maximum TIF amount, is subject to completion of the required steps to create a TIF district,
conditioned upon the project receiving LIHTC, and not binding upon the EDA/city even if
LIHTC are awarded for the project.
TAX ABATEMENT SCENARIOS
With tax abatement, we presume that no other jurisdictions would agree to a tax abatement so
only the city’s share of additional property taxes would be abated. As with TIF, the deal
structure would be a pay-as-you-go (“paygo”) note:
Page 4 of 4
Summary of 15-year Tax Abatement scenario:
$360,000 paygo note (present value)
2.06% of the total project cost of $17,503,846, or just enough to get 4 MHFA points
There would still be a $687,061 gap the developer would need to fill
Summary of 10-year Tax Abatement scenario:
$255,000 paygo note (present value)
1.46% of the total project cost of $17,503,846, or not enough to get any MHFA points
There would still be a $792,061 gap the developer would need to fill
The main advantage to using tax abatement is that it doesn’t have an affordability requirement
(housing TIF district) or blight requirement (redevelopment TIF district). But this project would
meet the affordability requirement for a housing TIF district.
STAFF RECOMMENDATION
Staf recommends adoption of the resolution with a not-to-exceed TIF amount of $795,000 (the
15-year TIF scenario).
Reasons:
There is no advantage to using tax abatement instead of tax increment financing
TIF would be in line with similar affordable housing development projects
TIF would be less than 5% of total development cost (similar to The Cavanagh)
Support is conditional upon detailed TIF analysis and process requirements, including a
public hearing and TIF district approval by the EDA and City Council
The resolution is not binding upon the EDA or City Council
EDA ACTION REQUESTED
Adopt the attached resolution with a not-to-exceed TIF amount of $__________.
$795,000 (15-year TIF); $550,000 (10-year TIF)
Page 1 of 2
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2021-06
RESOLUTION SUPPORTING TAX INCREMENT FINANCING ASSISTANCE
FOR A MULTI-FAMILY HOUSING PROJECT AT 5240 WEST BROADWAY
WHEREAS, Sand Development, LLC (“Developer”) has proposed to build a 58 unit
multi-family housing development project with a proposed address of 5240 West
Broadway (“Project”) on a vacant site addressed as 5232-5256 West Broadway; and
WHEREAS, Developer intends to apply for Low Income Housing Tax Credit financing
(“Tax Credits”) for the Project; and
WHEREAS, the success of this application will depend, to some degree, on local
support of the project through the commitment of Tax Increment Financing.
NOW THEREFORE, BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT
AUTHORITY OF THE CITY OF CRYSTAL, MINNESOTA (“EDA”):
1. The EDA supports the application for Tax Credits for a 58 unit multi-family housing
development project at 5240 West Broadway; and
2. Upon receipt of a complete Application for Public Financing from Developer,
including the application fee and escrow deposit, staff is authorized to prepare a Tax
Increment Financing Plan (“TIF Plan”) for a tax increment financing district qualified
as a housing district with a maximum of $_________ in tax increment financing
assistance, subject to the procedures under state law for the establishment of the
tax increment district and the grant of tax increment financing assistance, for
consideration by the EDA and City Council; and
3. The TIF Plan preparation authorized by this resolution shall be predicated upon the
award of Tax Credits for the Project, and if Developer has not secured an allocation
of Tax Credits for the Project by February 1, 2022, then the support for the Project
expressed by this resolution shall expire and be no longer in effect; and
Page 2 of 2
4. The adoption of this resolution does not bind the City of Crystal or its Economic
Development Authority to provide tax increment financing or other available
municipal funds for the Project.
Adopted this 15th day of June, 2021.
__________________________
Olga Parsons, President
__________________________
Anne Norris, Executive Director
5/25/2021
DistrictType:Housing
District Name/Number:
County District #:Exempt Class Rate (Exempt)0.00%
First Year Construction or Inflation on Value 2022 Commercial Industrial Preferred Class Rate (C/I Pref.)
Existing District - Specify No. Years Remaining First $150,000 1.50%
Inflation Rate - Every Year:0.00%Over $150,000 2.00%
Interest Rate:4.375%Commercial Industrial Class Rate (C/I)2.00%
Present Value Date:1-Aug-23 Rental Housing Class Rate (Rental)1.25%
First Period Ending 1-Feb-24 Affordable Rental Housing Class Rate (Aff. Rental)
Tax Year District was Certified:Pay 2021 First $174,000 0.75%
Cashflow Assumes First Tax Increment For Development:2024 Over $174,000 0.25%
Years of Tax Increment 26 Non-Homestead Residential (Non-H Res. 1 Unit)
Assumes Last Year of Tax Increment 2049 First $500,000 1.00%
Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over $500,000 1.25%
Incremental or Total Fiscal Disparities Incremental Homestead Residential Class Rate (Hmstd. Res.)
Fiscal Disparities Contribution Ratio 31.7658%Pay 2021 First $500,000 1.00%
Fiscal Disparities Metro-Wide Tax Rate 139.5040%Pay 2021 Over $500,000 1.25%
Maximum/Frozen Local Tax Rate: 121.902%Pay 2021 Agricultural Non-Homestead 1.00%
Current Local Tax Rate: (Use lesser of Current or Max.)121.902%Pay 2021
State-wide Tax Rate (Comm./Ind. only used for total taxes)35.9780%Pay 2021
Market Value Tax Rate (Used for total taxes)0.24121%Pay 2021
Building Total Percentage Tax Year Property Current Class After
Land Market Market Of Value Used Original Original Tax Original After Conversion
Map ID PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.
1 09-118-21-22-0030 W. Broadway Inv.5232 W. Broadway 135,000 135,000 100%135,000 Pay 2021 C/I Pref.2,025 Aff. Rental 1,013 1
2 09-118-21-22-0031 W. Broadway Inv.5240 W. Broadway 122,000 122,000 100%122,000 Pay 2021 C/I 2,440 Aff. Rental 915 1
3 09-118-21-22-0032 Zephyr Land LLC 5248 W/ Broadway 122,000 122,000 100%122,000 Pay 2021 C/I Pref.1,830 Aff. Rental 915 1
4 09-118-21-22-0033 Zephyr Land LLC 5256 W. Broadway 116,000 116,000 100%116,000 Pay 2021 C/I 2,320 Aff. Rental 870 1
495,000 0 495,000 495,000 8,615 3,713
Area/
Phase
Tax Rates
5/25/2021
Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First Year
Market Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full Taxes
Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity Capacity/Unit 2022 2023 2024 2025 Payable
1 Aff Apt 195,000 195,000 58 11,310,000 Aff. Rental 78,735 1,358 25%75%100%100%2026
TOTAL 11,310,000 78,735
Subtotal Residential 58 11,310,000 78,735
Subtotal Commercial/Ind.0 0 0
Total Fiscal Local Local Fiscal State-wide Market
Tax Disparities Tax Property Disparities Property Value Total Taxes Per
New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./Unit
Aff Apt 78,735 0 78,735 95,980 0 0 18,992 114,971 1,982.26
TOTAL 78,735 0 78,735 95,980 0 0 18,992 114,971
Total Property Taxes 114,971
less State-wide Taxes 0
less Fiscal Disp. Adj.0
less Market Value Taxes (18,992)
less Base Value Taxes (4,526)
Annual Gross TIF 91,454
5/25/2021 Tax Increment Cashflow - Page 3
Project Original Fiscal Captured Local Annual Semi-Annual State Admin.Semi-Annual Semi-Annual PERIOD
% of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax Payment
OTC Capacity Capacity Incremental Capacity Rate Increment Increment 0.36%10%Increment Value Yrs.Year Date
- - - - 02/01/24
100%19,684 (3,713) - 15,971 121.902%19,469 9,735 (35) (970) 8,730 8,360 0.5 2024 08/01/24
100%19,684 (3,713) - 15,971 121.902%19,469 9,735 (35) (970) 8,730 16,541 1 2024 02/01/25
100%59,051 (3,713) - 55,339 121.902%67,459 33,730 (121) (3,361) 30,247 44,280 1.5 2025 08/01/25
100%59,051 (3,713) - 55,339 121.902%67,459 33,730 (121) (3,361) 30,247 71,426 2 2025 02/01/26
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 107,439 2.5 2026 08/01/26
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 142,681 3 2026 02/01/27
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 177,169 3.5 2027 08/01/27
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 210,919 4 2027 02/01/28
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 243,946 4.5 2028 08/01/28
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 276,266 5 2028 02/01/29
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 307,894 5.5 2029 08/01/29
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 338,845 6 2029 02/01/30
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 369,134 6.5 2030 08/01/30
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 398,774 7 2030 02/01/31
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 427,780 7.5 2031 08/01/31
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 456,165 8 2031 02/01/32
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 483,942 8.5 2032 08/01/32
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 511,125 9 2032 02/01/33
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 537,725 9.5 2033 08/01/33
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 563,757 10 2033 02/01/34
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 589,231 10.5 2034 08/01/34
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 614,159 11 2034 02/01/35
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 638,554 11.5 2035 08/01/35
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 662,427 12 2035 02/01/36
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 685,789 12.5 2036 08/01/36
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 708,651 13 2036 02/01/37
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 731,023 13.5 2037 08/01/37
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 752,916 14 2037 02/01/38
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 774,341 14.5 2038 08/01/38
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 795,307 15 2038 02/01/39
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 815,825 15.5 2039 08/01/39
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 835,903 16 2039 02/01/40
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 855,551 16.5 2040 08/01/40
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 874,779 17 2040 02/01/41
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 893,595 17.5 2041 08/01/41
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 912,008 18 2041 02/01/42
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 930,027 18.5 2042 08/01/42
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 947,660 19 2042 02/01/43
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 964,916 19.5 2043 08/01/43
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 981,803 20 2043 02/01/44
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 998,328 20.5 2044 08/01/44
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,014,499 21 2044 02/01/45
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,030,324 21.5 2045 08/01/45
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,045,811 22 2045 02/01/46
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,060,965 22.5 2046 08/01/46
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,075,796 23 2046 02/01/47
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,090,309 23.5 2047 08/01/47
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,104,511 24 2047 02/01/48
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,118,409 24.5 2048 08/01/48
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,132,010 25 2048 02/01/49
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,145,320 25.5 2049 08/01/49
100%78,735 (3,713) - 75,023 121.902%91,454 45,727 (165) (4,556) 41,006 1,158,344 26 2049 02/01/50
Total 2,281,823 (8,215) (227,361) 2,046,247
Present Value From 08/01/2023 Present Value Rate 4.38%1,291,699 (4,650) (128,705) 1,158,344
Prepared by Ehlers & Associates, Inc. - Estimates Only N:\Minnsota\Crystal\Housing - Economic - Redevelopment\Pending Projects\Sands Company 2021\TIF Run 5-25-21