2022.06.21 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• REGULAR MEETING •
TUESDAY, JUNE 21, 2022
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 the May 17, 2022 regular meeting and June 7, 2022 work
session.
4. Consider a resolution supporting tax increment financing assistance for a multi-
family housing project at 7000 57th Avenue North.
5. Property status update *
6. Other business *
7. 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
May 17, 2022
1. Call to Order
President Banks called the meeting of the Economic Development Authority of the City
of Crystal (EDA) to order at 7:33 p.m.
2. Roll Call
Upon call of the roll, the following Commissioners were present: Jim Adams, Brendan
Banks, John Budziszewski, David Cummings, Therese Kiser and Olga Parsons.
The following staff were present: Executive Director Anne Norris, Deputy Executive
Director John Sutter, City Planner Dan Olson and City Attorney Troy Gilchrist.
3. Approval of Minutes
Moved by Commissioner Budziszewski (Kiser) to approve the minutes from the April 5,
2022 regular meeting. Motion carried.
4. Review proposals and consider selection of a developer for EDA property at 4824 56th
Ave. N.
Staff presented the two proposals received, acknowledged the presence of developer
representatives (if applicable), and requested board action to select a developer.
Glenn Hammer of Great Buy Homes addressed and answered questions from the board.
Moved by Commissioner Adams (Cummings) to select Great Buy Homes as the
developer for EDA property at 4824 56th Ave. N. Motion carried.
5. Review proposals and consider selection of a developer for EDA property at 3401-3415
Douglas Dr. N.
Staff presented the proposal received and requested board action to select a developer.
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Moved by Commissioner Adams (Budziszewski) to select Hampton Companies as the
developer for EDA property at 3401-3415 Douglas Dr. N. Motion carried.
6. Property Status Update
Staff updated the board on several current and potential projects:
6105 42nd Ave. N. - Elision Playhouse mural
3600 Douglas Dr. N. - still on the market, retail user looking to purchase
5358 West Broadway - vacant Burger King - sold, new owner will convert to office
5730 Bottineau Blvd. - Crystal Vision Clinic under construction
6014 Lakeland Ave. N. - Rostamo’s to be demolished, Odam Medical Clinic to start
construction this summer
5240 West Broadway - Sand Companies 58 unit, 4 story apartment building - zoning
and TIF applications expected in July for Planning Commission, City Council and
EDA meetings in August
7000 57th Ave. N. - office building for sale - developer considering an apartment
building on the site, will be presented for discussion at June 7 work session
West Broadway / Douglas Drive intersection reconstruction - awaiting regional
funding decision later this year, construction anticipated 2026-2027 if funded
7. Other Business
There was no other business.
8. Adjournment
Moved by Commissioner Budziszewski (Kiser) to adjourn the meeting. Motion carried.
The meeting adjourned at 8:16 p.m.
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These minutes of the May 17, 2022 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ____, 20___.
______________________________
Brendan Banks, President
ATTEST:
______________________________
Nancy LaRoche, Secretary
Page 1 of 2
Minutes of the
Economic Development Authority of the City of Crystal
Work Session
Council Chambers
June 7, 2022
1. Call to Order
Secretary LaRoche, as presiding officer, called the work session of the Economic
Development Authority of the City of Crystal (EDA) to order at 6:19 p.m.
2. Roll Call
Upon call of the roll, the following Commissioners were present: Jim Adams, 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. Presentation and discussion regarding a proposal by MWF Properties for redevelopment
of 7000 57th Ave. N.
Staff presented information about the proposed development of a 60 unit, 4 story
apartment building on the site of an existing office building at 7000 57th Ave. N. MWF
Properties intends to apply to the state for housing tax credits in July and requests an
EDA resolution of support for Tax Increment Financing to help close the remaining
financing gap and boost the score for their tax credit application. The EDA will be asked
to consider a non-binding TIF support resolution on June 21.
The board discussed several aspects of the proposed development, including the proposed
financing for the development and the effects of the state’s 4d property tax classification.
Ryan Schwickert of MWF Properties addressed the board.
4. Adjournment
The work session adjourned at 6:59 p.m.
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These minutes of the June 7, 2022 work session of the Crystal Economic Development Authority
were approved by the Authority on ________________ ____, 20___.
______________________________
Brendan Banks, President
ATTEST:
______________________________
Nancy LaRoche, Secretary
Page 1 of 3
___________________________________________________________________________
FROM: John Sutter, Community Development Director
DATE: June 16, 2022
TO: Anne Norris, Executive Director (for June 21 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., “Crystal Square”, was built in 1976. It has a 2022
estimated market value of $1,035,000 and is currently listed for sale at $1,500,000.
2021 aerial photo:
EDA STAFF REPORT
Proposed Redevelopment
7000 57th Ave. N.
MWF Properties
Page 2 of 3
2022 real estate listing photo:
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 / 1 or 2 3 24 3 30 (50%) - 2 bedrooms, 1 or 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 (10%) 36 (60%) 18 (30%)
at max. of units at of units at of units at
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. See table on next page.
Page 3 of 3
The developer intends to classify the property as 4d, which is a special property tax
classification rate for affordable housing, shown as “Current 4d” on the table above.
- This would be consistent with The Cavanagh and the proposed Sand Companies project.
- Currently, state law allows any qualifying affordable apartment building to apply for and
receive 4d classification. There is no local say in the matter.
- The Legislature’s conference committee tax bill (“Proposed 4d”) would reduce the
classification rate for 4d properties, thus even further reducing property taxes paid by 4d
properties.
- However, the tax bill also contains a provision requiring city approval for any new 4d
properties, meaning that the city could choose not to approve 4d classification for any
properties not already classified as such.
- If that tax bill becomes law, staff and the City Council will need to develop a 4d policy
consistent with Council goals.
- Both the lower 4d classification rate and the option for the city to deny 4d classification
would potentially impact this project. MWF acknowledged this at the June 7 work session.
The maximum duration of a housing TIF district is 26 years. For the MWF project, a 10-year
TIF duration would reduce the $1,259,458 financing gap by $375,000 based on the current 4d
classification rate. 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 what was
adopted by the EDA in June 2021 for the Sand Companies project. Because the LIHTC
application deadline is July 15, the June 21 meeting is 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.
Representatives from MWF will attend the June 21 EDA meeting to make a presentation and
answer questions about the proposed development.
EDA action for consideration:
Motion to adopt the attached resolution of support for a 10-year housing TIF district.
Page 1 of 2
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2022 - ___
RESOLUTION SUPPORTING TAX INCREMENT FINANCING ASSISTANCE
FOR A MULTI-FAMILY HOUSING PROJECT AT 7000 57TH AVENUE NORTH
WHEREAS, MWF Properties (“Developer”) has proposed to build a 60 unit multi-family
housing development project at 7000 57th Avenue North (“Project”); 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 60 unit multi-family housing
development project at 7000 57th Avenue North; 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 10 year duration and, based on current property tax
classification rates, an estimated maximum of $375,000 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, 2023, 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 21st day of June, 2022.
__________________________
Brendan Banks, President
__________________________
Anne Norris, Executive Director