The URL can be used to link to this page

Home My WebLink About13.B.2. Request of Dominion Inc. for City Support of Funding for Arlington Ridge-Res. No. 7104136- CITY OF SHAKOPEE Memorandum TO: Honorable Mayor and City Council Mark McNeill, City Administrator FROM: R. Michael Leek, Community Development Director SUBJECT: Request of Dominium Inc. for City Support of Funding For Arlington Ridge MEETING DATE: June 7, 2011 INTRODUCTION: Dominium Development & Acquisition, L.L.C. ( Dominium), on behalf of Shakopee Leased Housing Associates II, Limited Partnership, is submitting an application (due June 14, 2011) to the Minnesota Housing Finance Agency (MHFA) for tax credits that will enable them to perform a rehabilitation of the Arlington Ridge Apartments located at 1219 Taylor Street. In order to increase the chances of success of the application, Dominium has requested that 1) the City provide a resolution and letter of support (see attached) and 2) that the City Council consider a waiver or reduction of building permit fees associated with the planned rehabilitation work. DISCUSSION: Affordable Housing: The attached draft resolution references the regional target for affordable housing in Shakopee. This target was incorporated into the City's adopted comprehensive plan. Arlington Ridge, constructed in the mid- 1990s, has been and is part of the current supply of affordable housing in the City. Maintenance and upkeep of this supply of affordable housing is consistent with the Housing chapter of the City's 2030 Comprehensive Plan. Waiver or Reduction of Building Permit Fees: it is clear why waiver or reduction of building permit fees for such an application might be viewed positively by MHFA. However, at present the City's building inspections revenues are far less than its expenditures for inspections services, so reduction or waiver of fees for a project would to some extent increase that disparity. H: \CC \2011 \CC_Arlington Ridge_06072011.docx Page 1 In addition, there is a concern about how granting the present request for waiver or reduction might result in other requests for other similar or non - profit projects, and how to equitably treat such requests. ALTERNATIVES: Regarding the draft resolution of support, the City Council has the following alternatives; 1. Approve the attached resolution as presented; 2. Approve the attached resolution with revisions; 3. Do not approve the attached resolution. Regarding the request to waive or reduce building permit fees for the proposed renovations; 4. Offer a motion waiving building permit fees for the proposed renovations at Arlington Ridge. 5. Offer a motion directing staff to reduce the required building permits fees by a set percentage. 6. Do not approve the request to waive or reduce building permit fees for the proposed renovations at Arlington Ridge. STAFF RECOMMENDATION: Staff recommends alternatives number 1 and 6, i.e. approve the attached resolution as presented, but do not waive or reduce building permit fees. RELATIONSHIP TO CITY GOALS: This item relates to City Goal D. Maintain, improve and create strong partnerships with other public and private sector entities. ACTION REQUESTED: After discussion, provide Utilities Commission and City staff with direction about other ideas for partnering on economic development efforts for Shakopee. R. Michael Leek Community Development Director H: \CC \2011 \CC_Arlington Ridge_06072011.docx Page 2 RESOLUTION NO. 7104 A RESOLUTION OF THE CITY OF SHAKOPEE SUPPORTING THE SECTION 42 TAX CREDIT APPLICATION TO THE MINNESOTA HOUSING FINANCE AGENCY BY SHAKOPEE LEASED HOUSING ASSOCIATES II, LIMITED PARTNERSHIP. WHEREAS, Shakopee Leased Housing Associates II, Limited Partnership proposes to renovate Arlington Ridge Apartments and maintain affordable rents paid by tenants to 60% of area median income or less; and, WHEREAS, Arlington Ridge is an existing part of the supply of affordable housing within the City of Shakopee; and WHEREAS, such renovations are consistent with the goals of the Housing chapter of the Adopted City of Shakopee 2030 Comprehensive Plan as they relate to promoting the maintenance of existing affordable housing in the City of Shakopee; and WHEREAS, The Metropolitan Council has identified a need between 2011 and 2020 for 2105 affordable housing units in the City of Shakopee, and the City's adopted 2030 Comprehensive Plan acknowledges that identified need. One approach to facilitate the production and maintenance of affordable is to work with developers and property owners by providing incentives for the production/maintenance of affordable housing; and WHEREAS, the City of Shakopee reaffirms its prior approval for a density bonus of two (2) dwelling units for a total of fourteen (14) dwelling units and flexibility in zoning code requirements, and will provide fast track permitting and approval for the renovation of Arlington Ridge Apartments. NOW THEREFORE BE IT RESOLVED that the City of Shakopee formally supports the Section 42 tax credit application to be submitted by Shakopee Leased Housing Associates II, Limited Partnership for the property of Arlington Ridge Apartments. Adopted in session of the City Council of the City of Shakopee, Minnesota, held the day of 1 2011. Mayor of the City of Shakopee ATTEST: Judith S. Cox, City Clerk H: \CC \2011 \Arlinton Ridge RESOLUTION NO.docx Page 1 Arlington Ridge Apartments Summary Sc o The rehabilitation of Arlington Ridge Apartments will consist of approximately $1,440,000, or $30,000 per unit. The significant capital outlay will allow the properties to provide safe, healthy, affordable housing for another 30+ years. A proposed list of the major renovations to be completed to the property is below. This list is subject to change, but the final renovations will include the vast majority of the items listed. Site • Update landscaping • New picnic /BBQ areas • Add lighting at site monument sign • Repair parking lot — fill cracks, seal coat and re- stripe • Replace /repair damaged sidewalks as necessary • Replace trash enclosure with new CMU block structure • Extend perimeter fence around NE property line Building Exteriors • New camera monitoring system • New FOB entry system at all building entrances • Replace exterior patio lights • Stain/paint patio railings, decks and posts • Replace garage doors where needed • Replace damaged siding on garages • Replace wood trim at garage door jambs • Replace building wall -pak lighting (energy efficient) Common Area Interiors • Replace flooring at building entrances • Replace common area lights • Add decorative chair rail to common area hallways • Paint common area hallways • Replace interior signage • Install water softeners • Replace water heaters • Tune up existing boilers • Replace all common area doors & hardware • Upgrade common laundry rooms — flooring, painting and lighting Unit Interiors • Upgrade Kitchens o Replace countertops o Add above range microwaves o New cabinet door and drawer fronts o Add cabinet door hardware Arlington Ridge Apartments Sc ope Summar i o New flooring as needed — vinyl and carpet o New sinks and faucets o Replace appliances as needed Upgrade Bathrooms • New vanity door and drawer fronts • New cultured marble vanity tops • New bathroom faucets • New shower heads • New towel bars, shower rods and toilet paper holders • New mirrors • Replace unit entry doors and hardware • Replace air conditioners as needed • Add ceiling fans in dining room and bedrooms • Refurbish windows & patio doors as needed • Replace interior doors as needed (bedroom, bathroom and closet doors) • Replace interior door hardware throughout unit • New lighting through out unit (Energy Star) • Add cultured marble window sills at all windows and patio doors • Replace baseboard radiator covers as needed