HomeMy WebLinkAbout7A Pike Lake Marsh TIF PresentationCity Council Meeting
March 27, 2017
Project Description
68-unit, 3-story apartment building
15 one-bedroom units
33 two-bedroom units
20 three-bedroom units
Underground Parking (83) + Surface Parking (44)
29,824 SF building footprint; total area of 119,557 SF
including underground parking.
Zoned R-3, High Density Residential
No rezoning is required
History –Pike Lake Marsh
May 4, 2015 -PC approved CUP for this project in R-3 and
recommended approval of the Preliminary Plat.
May 11, 2015 –CC approved its consent to the process for
the creation of a Housing TIF District in support of the
proposed Ron Clark multifamily housing project for
$600,000 and a maximum 15-year term (Res. 15-083)
May 26, 2015 –CC approved Pike Lake Preliminary Plat.
October 19, 2016 –Pike Lake Marsh received $1,045,000
of the $8.75 million in HTC awarded through MN Housing.
Rent Analysis
100% of units will be affordable to households at/below 50% of the Area Median
Income (AMI) for Scott County for the first 10 years. Rents may adjust up to 60%
AMI in years 11 –30.
1-Bedroom Unit: Market Rate* =$1,375/month
HTC Limit = $805/month (50% level)
Monthly Rent Difference = $570
2-Bedroom Unit: Market Rate* =$1,775/month
HTC Limit = $966/month (50% level)
Monthly Rent Difference = $809
3-Bedroom Unit: Market Rate* =$1,950/month
HTC Limit = $1,115/month (50% level)
Monthly Rent Difference = $835
*Based on rental rates for a proposed market rate apartment building in PL
Rent Analysis
2016 Qualifying Income
Limits for Scott County
(60% AMI):
1-person household =
$36,060
2-person household =
$41,220
3-person household =
$46,380
4-person household =
$51,480
5-person household =
$55,620
Project Cost and Public Financing
Total Development Cost (TDC)$15.2 million ($223,530/unit)
Total County Est. Market Value $7.48 million ($110,000/unit)
Current Market Value (land only) $222,000
TIF Request $600,000 (15-year TIF term)
Scott County CDA Financing $175,000 (grant)
Total Public Financing $775,000 ($11,400/unit, or
5% of TDC)
The boundaries of TIF District No.1-6
are described as Lot 1,Block 1,Pike
Lake Marsh,Scott County,Minnesota
along with the adjacent roads and
right-of-way to the parcel.
Developer Fees & Street Cost
Developer pays these estimated development fees to the City:
Developer will also be paying an estimated $525,000 for improvements to
Pike Lake Trail and approx. 300’ of the proposed E/W public street
Parkland Dedication $255,000
Sanitary Sewer $19,656
Water $39,336
Stormwater $29,743
Street Oversize $31,812
Building Permit $48,000
Utility Connection Charge $18,000
SAC/WAC (City only) $219,028
$660,575
Future Street Support Network
Questions / Comments
Prior Lake Affordable Rental Housing Supply -2017
Housing Tax Credits
The Housing Tax Credit (HTC) Program is a financing
program for qualified residential rental properties.
The HTC program offers investors a 10-year reduction in
tax liability in exchange for capital to build eligible
affordable rental housing .
Of the 23 applications seeking over $21 million of HTC in
the first round of 2017, Pike Lake Marsh was one of the
12 approved projects and received $1,045,000 of the
$8.75 million in HTC awarded through MN Housing.