2022.06.07 EDA Work Session PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• WORK SESSION •
TUESDAY, JUNE 7, 2022
6:15 P.M.
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Presentation and discussion regarding a proposal by MWF Properties for
redevelopment of 7000 57th Ave. N.
4. Adjournment *
*Items for which no materials are included in the packet
THIS PAGE INTENTIONALLY BLANK
Page 1 of 3
___________________________________________________________________________
FROM: John Sutter, Community Development Director
DATE: June 2, 2022
TO: Anne Norris, Executive Director (for June 7 EDA meeting)
SUBJECT: Presentation and discussion regarding a proposal by MWF Properties for
redevelopment of 7000 57th Ave. N.
The office building at 7000 57th Ave. N. was built in 1976, has a 2022 estimated market value
of $1,035,000 and is currently listed for sale at $1,500,000:
EDA STAFF REPORT
Proposed Redevelopment
7000 57th (Crystal Square)
MWF Properties
Page 2 of 3
MWF Properties, an experienced apartment developer with recent projects across the Twin
Cities, is proposing a 60-unit apartment building on the site.
MWF’s preliminary unit mix would be as follows:
Bedrooms Maximum Household Income
& Baths 30% AMI 50% AMI 60% AMI Totals by bedrooms and baths
1 / 1 3 12 0 15 (25%) - 1 bedroom, 1 bath
2 / 2 3 24 3 30 (60%) - 2 bedrooms, 2 baths
3 / 2 0 0 10 10 (17%) - 3 bedrooms, 2 baths
4 / 2 0 0 5 5 (8%) - 4 bedrooms, 2 baths
Totals 6 units 36 units 18 units
at max. (10%) at (60%) at (30%) at
HH income 30% AMI 50% AMI 60% AMI
The largest source of funds would be federal Low Income Housing Tax Credits (LIHTC) which
are awarded by the Minnesota Housing Finance Agency (MHFA). To be considered for 2023
construction, MWF must submit their LIHTC application to MHFA by July 15 and the tax credit
awards would be announced in Dec. 2022 - Jan. 2023.
MWF has estimated the preliminary sources, uses and financing gap for the project:
$18,137,000 Sources - 19,396,458 Uses = 1,259,458 Financing Gap
To help close the anticipated financing gap and maximize the project’s LIHTC score at MHFA,
MWF is asking the EDA to discuss its willingness to provide local funding through a Housing
Tax Increment Financing (TIF) district. Staff asked our TIF consultant, Ehlers and Associates,
to estimate the present value of TIF assistance for 10 and 15-year district durations and
market-rate, current 4d and proposed 4d* property tax classifications:
*The developer proposes to classify the property as 4d, which would be consistent with The
Cavanagh and the proposed Sand Companies project. Currently, any qualifying property
can apply for and receive 4d classification and there is no local say in the matter. The
Legislature’s conference committee tax bill (“proposed 4d”) would dramatically reduce the
property taxes paid by 4d properties so that, for the MWF project, they would pay taxes
only a little higher than what is paid by the existing office building. However, the tax bill also
contains a provision requiring city approval for any new 4d classifications, meaning that the
city could choose not to approve 4d classifications for any properties not already classified
as such. If the tax bill becomes law, staff and the City Council will need to develop a 4d
policy consistent with Council goals.
Page 3 of 3
The maximum duration of a housing TIF district is 26 years. Based on other projects, Ehlers
suggests that a 15-year duration might be appropriate for this project. For the Sand
Companies project, in June 2021 the EDA gave preliminary (nonbinding) approval for a 10-
year TIF district. For the MWF project, a 10-year TIF duration would reduce the $1,259,458
financing gap by $375,000.
Please note that the developer has not submitted a formal TIF application but this would be
required prior to any EDA or City Council action to create a TIF district.
In the meantime, the developer needs to know whether they can include any sort of proposed
TIF in their LIHTC application to MHFA. This would need to be a resolution similar to the
attached example adopted by the EDA in June 2021 for the Sand Companies project. Because
the LIHTC application deadline is July 15, the June 21 meeting will be the only opportunity for
the EDA to consider such a resolution. Please note that the resolution would be conditioned on
the project receiving LIHTC and not binding upon the EDA/city even if LIHTC are awarded.
QUESTIONS FOR EDA DISCUSSION ON JUNE 7:
What are your thoughts in general about creating a TIF district to assist this project?
What general level of assistance would you support? (10 years?)
Are you comfortable considering a resolution on June 21?
Representatives from MWF will be attending the June 7 EDA meeting virtually or in-person to
answer questions.
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
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kaas wilson architects
MWF -Crystal, MNSite Plan - Preliminary
SD_101 05/12/22
225 ft²
Stair
637 ft²
Maint.
496 ft²
Elevator / Trash
225 ft²
Stair
17,237 ft²
Parking
SD_107
1
SD_1072
SD_107
3
SD_108
2
kaas wilson architects
MWF -Crystal, MNGarage Plan - Preliminary
SD_102 05/11/22
967 ft²
Lobby / Office / Mail
1,061 ft²
Community Room
569 ft²
Study
PROPERTY LINEPROPERTY LINE PROPERTY LINEBUILT-TO ZONEBUILT-TO ZONE
284 ft²
Stair
1,113 ft²
Unit 2-3
1,536 ft²
Unit 4-0
967 ft²
Unit 2-0
967 ft²
Unit 2-0
813 ft²
Elevator/Trash
683 ft²
Unit 1-0
284 ft²
Stair
1,051 ft²
Unit 2-1
1,051 ft²
Unit 2-1
967 ft²
Unit 2-0
683 ft²
Unit 1-0
967 ft²
Unit 2-0
569 ft²
Fitness
683 ft²
Unit 1-0
696 ft²
Unit 1-1
1,341 ft²
Unit 3-1
341 ft²
Entry Corridor
SD_107
1
SD_108 3
SD_1072
SD_107
3
SD_108
2
SD_1081
kaas wilson architects
MWF -Crystal, MNLevel 1 - Preliminary
SD_103 05/11/22
284 ft²
Stair
696 ft²
Unit 1-1
1,051 ft²
Unit 2-1
1,051 ft²
Unit 2-1
1,252 ft²
Unit 3-0
813 ft²
Elevator/Trash
683 ft²
Unit 1-0
1,288 ft²
Unit 3-2
683 ft²
Unit 1-0
967 ft²
Unit 2-0
967 ft²
Unit 2-0
1,536 ft²
Unit 4-0
1,113 ft²
Unit 2-3284 ft²
Stair
967 ft²
Unit 2-0
967 ft²
Unit 2-0
683 ft²
Unit 1-0
1,341 ft²
Unit 3-1
SD_107
1
SD_108 3
SD_1072
SD_107
3
SD_108
2
967 ft²
Unit 2-0
SD_1081
kaas wilson architects
MWF -Crystal, MNLevel 2 - Preliminary
SD_104 05/11/22
1,288 ft²
Unit 3-2
813 ft²
Elevator/Trash
1,113 ft²
Unit 2-3
1,536 ft²
Unit 4-0
967 ft²
Unit 2-0
967 ft²
Unit 2-0
683 ft²
Unit 1-0
683 ft²
Unit 1-0
1,252 ft²
Unit 3-0
1,051 ft²
Unit 2-1
1,051 ft²
Unit 2-1
284 ft²
Stair
284 ft²
Stair
696 ft²
Unit 1-1
967 ft²
Unit 2-0
683 ft²
Unit 1-0
967 ft²
Unit 2-0
1,341 ft²
Unit 3-1
SD_107
1
SD_108 3
SD_1072
SD_107
3
SD_108
2
967 ft²
Unit 2-0
SD_1081
kaas wilson architects
MWF -Crystal, MNLevel 3 - Preliminary
SD_105 05/11/22
284 ft²
Stair
1,051 ft²
Unit 2-1
1,051 ft²
Unit 2-1
696 ft²
Unit 1-1
1,252 ft²
Unit 3-0
813 ft²
Elevator/Trash
683 ft²
Unit 1-0
1,288 ft²
Unit 3-2
683 ft²
Unit 1-0
967 ft²
Unit 2-0
967 ft²
Unit 2-0
1,536 ft²
Unit 4-0
1,113 ft²
Unit 2-3284 ft²
Stair
1,650 ft²
Unit 4-1
967 ft²
Unit 2-0 1,341 ft²
Unit 3-1
SD_107
1
SD_108 3
SD_1072
SD_107
3
SD_108
2
967 ft²
Unit 2-0
SD_1081
kaas wilson architects
MWF -Crystal, MNLevel 4 - Preliminary
SD_106 05/11/22
kaas wilson architects
MWF -Crystal, MNElevations - Preliminary
SD_107 05/19/22
1/16" = 1'-0"1 Preliminary Elevation - South
1/16" = 1'-0"2 Preliminary Elevation - East End
1/16" = 1'-0"3 Preliminary Elevation - North
kaas wilson architects
MWF -Crystal, MNElevations - Preliminary
SD_108 05/19/22
1/16" = 1'-0"1 Preliminary Elevation - East
1/16" = 1'-0"2 Preliminary Elevation - North End
1/16" = 1'-0"3 Preliminary Elevation - West