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HomeMy WebLinkAbout5N - Jeffers Pond Family Townho CITY COUNCIL AGENDA REPORT 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: CONCLUSION: ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: JULY 19,2004 .s1V JANE KANSIER, PLANNING DIRECTOR CONSIDER APPROVAL OF MOTION AUTHORIZING PREPARATION AND SIGNATURE OF A LETTER ACKNOWLEDGING THE WITHDRAWAL OF THE LOCAL HOUSING INCENTIVES GRANT FOR A HOUSING DEVELOPMENT TO BE KNOWN AS JEFFERS POND FAMILY TOWNHOMES Historv: On July 29, 2002, the City Council authorized the staff to send a letter in support of a housing development to be known as Jeffers Pond Family Townhomes. This letter stated the City's support of the use of Minnesota Housing Finance Agency (MHF A) tax credits, and $200,000 Local Housing Incentives Grant from the Metropolitan Council. In June, 2004, Jim Deanovic returned the tax credits back to the MHF A. It appears this project is no longer viable. The Metropolitan Council has requested a letter from the City acknowledging the return of the tax credits and the return of the Local Housing Incentives Grant. The Local Housing Incentives Grant is a project specific grant issued to the City. The City then reimburses the developer for costs of a specified project, in this case, the Jeffers Pond Family Townhomes. Since that project will not be done, the grant is no longer valid. The Council needs to determine whether it wishes to direct staff to draft and send a letter acknowledging the returned grant. 1. Direct staff to prepare the letter acknowledging the returned grant. 2. Provide staff with other direction. L:\03 Files\03 Subdivisions\03 Prelim Plat\jeffers pond\IJN:WwJ~{iDgi_klseu~port,doc Phone 952.447.4230 / Fax 952.447.4245 JUN-15-~4 15:38 FROM.MN HOUSING FINANCE AGENCY ID.8512888545 ~003 PAGE 2/2 07/08/2004 12:47 FAX 6516021442 MET. COUNCIL 9465 Amesbury Lane Eden Prairie, MN. 55347 June 1, 2004 ;, .... ~ " .r~ In regards to:Jeffers Pond Phil Hagelberger Minnesota Housing Finance 400 Scbley Street~ Suite 300 St. PauL, Mn. 55101 Dear Phil, The estate has delayed the approval process to a point that would make it difficult to get a road in and start construction this year. We do have next year to build, but prices have increased, and if we wait the PerConna will only get worse. The Performa bas a significant gap already with the most current construction pricing. The approved Performa had tax. numbers that barely worked. I have other completed projects that are struggling due to tax increases, and tax law that is hard to argue against. So before we start it would be bard to perform properly. Therefore I regretfully have to tum in Iny credits for Jeffers Pond. Thank you, .,/ \ / )-~ V Jim Deanovlc 07/08/2004 12:47 FAX 6516021442 MET. COUNCIL ~~ ~esotaHOusing '..lIlfLreAgrnry 400 SibleySrreer, Suite 300, St. Paul, MN 55101 651.296.7608 ny 65 L297.2361 June 15,2004 Jim Deanovic Jeffers Pond Family Housing Limited Partnership 9465 Amesbury Lane Eden Prairie, MN 55347 RE: Low Income Housing Tax Credit Program Jeffers Pond Family Townhomes MHFA # 03029 Dear Mr. Deanovic: IaJ 002 800.657.3769 www.mhft..statt.mn.us Thank you for interest and participation in the Low Income Housing Tax Credit Program. To confirm your intensions to return your low-income housing tax credits to MHFA, please contact Tamara Wilson by phone at 651-296-4451. We would appreciate a written confirmation by the end of business on Friday, June 18, 2004. If MHF A does not, receive a written acknowledgment by the end of business on Friday, June 18th. MHFA will re-assign the credits to an eligible development in the next funding cycle. If you feel that we have error, please contact your underwriter Phil Hagelberger at 651-297-7219. Thank you again for your participation in the Low Income Housing Tax Credit Program. Cc: Phil Hagelberger Met Council Family Housing Fund }'our Housing Resource of Choice Equal Opportunity Housing and Equal OpportUnity Employment