Upcoming Events. Board of Commissioners Packet. October 17, Keystone Crossing. Argonne Hills

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1 Board of Commissioners Packet October 17, :30 p.m. - Regular Meeting CDA Office, 1228 Town Centre Drive, Eagan Upcoming Events Keystone Crossing Monday, October 16, 2017 Open House from 3-4:30 p.m. Remarks at 3:30 p.m. Tours will be available before and after remarks. Argonne Hills Tuesday, October 24, 2017 Open House from 1-4 p.m. Dedication Ceremony at 3 p.m. CDA staff will provide guided tours of the building during the open house

2 REGULAR BOARD MEETING October 17, :30 p.m. Dakota County CDA, 1228 Town Centre Drive, Eagan, MN AGENDA PAGE# 1. ROLL CALL A. Audience Anyone in the audience wishing to address the CDA Board on an item not on the agenda or an item on the consent agenda may come forward at this time. Comments are limited to five minutes. 2. APPROVAL OF AGENDA AND MEETING MINUTES September 19, 2017 Regular CDA Board Meeting Minutes 2 3. FEDERAL PUBLIC HOUSING AND HOUSING CHOICE VOUCHER AGENDA No items. 4. CONSENT AGENDA A. Approve Record Of Disbursements September B. Approve Changes To Redevelopment Incentive Grant Program Guidelines C. Award Contract For Appliance Replacement At Orchard Square, Parkview Plaza, Cameo Place And Cortland Square Senior Housing Developments D. Authorization To Execute Agreement With Kutak Rock LLP For Legal Counsel Services E. Schedule A Public Hearing To Receive Comments On Sale Of Land Owned By The Rosemount Limited Partnership (Carbury Hills) Located At Connemara Trail And Highway 3, Rosemount F. Authorize Application For The Metropolitan Council Tax Base Revitalization Account G. Authorize Application To The Minnesota Department Of Employment And Economic Development (DEED) For Contamination Cleanup Grant And Committing Local Match And Authorizing Contract Signature REGULAR AGENDA A. Senior Housing Production Discussion Informational B. Adopt 2018 CDA Board Of Commissioners Meeting Dates C. Executive Director s Update Informational INFORMATION Status Report ADJOURNMENT - 2 -

3 For more information, call Dakota County CDA Board meeting agendas are available online at: Future Board Meetings & Events Argonne Hills Dedication and Open House October 24, :00 p.m. with remarks at 3:00 p.m. Address CDA Board of Commissioners Meeting, CDA Boardroom November 14, :30 p.m. CDA Office, 1228 Town Centre Drive, Eagan, MN

4 CDA Board of Commissioners Regular Board Meeting September 19, 2017 Dakota County CDA, 1228 Town Centre Drive, Eagan, MN Commissioner Gerlach called the meeting to order at 3:31 p.m. COMMISSIONER ROLL CALL Present Commissioner Slavik, District 1 Commissioner Gaylord, District 2 Commissioner Egan, District 3 Commissioner Atkins, District 4 Commissioner Workman, District 5 Commissioner Holberg, District 6. Commissioner Gerlach, District 7 Commissioner Cummings, At Large Absent CDA staff in attendance: Tony Schertler, Executive Director Kari Gill, Deputy Executive Director Sara Swenson, Director of Administration and Communications Kaili Braa, Administrative-Communications Coordinator Lisa Alfson, Director of Community & Economic Development Maggie Dykes, Assistant Director of Community & Economic Development Kathy Kugel, Housing Finance Coordinator Lisa Hohenstein, Director of Housing Assistance Anna Judge, Director of Property Management Vince Markell, Facilities Contract Manager Ken Bauer, Director of Finance Chris Meyer, Assistant Director of Finance Others in attendance: Erin Stwora, Dakota County Jay Stassen, Dakota County Angie Thiry David Deaver INTRODUCTION OF STAFF Anna Judge Introduced Maintenance Technicians Allan Schaeffer and Lee Sullivan. AUDIENCE There was no one in attendance to address the CDA Board of Commissioners. APPROVAL OF AGENDA AND MEETING MINUTES Approval Of Agenda And Meeting Minutes BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners that the agenda for the September 19, 2017 Regular CDA Board meeting be approved as amended: Remove item 5B for discussion in October BE IT FURTHER RESOLVED, by the Dakota County Community Development Agency Board of Commissioners that the minutes for the August 15, 2017 Regular CDA Board meeting be approved as written. Motion: Commissioner Holberg Second: Commissioner Slavik

5 Ayes: 6 Nays: 0 Abstentions: 0 Slavik Gaylord Egan Atkins Workman Holberg Gerlach Cummings Yes No Absent Abstain FEDERAL PUBLIC HOUSING AND HOUSING CHOICE VOUCHER AGENDA CONSENT Approval Of The 2018 Utility Allowance Schedule For The Public Housing Program WHEREAS, the Dakota County Community Development Agency administers the federal Public Housing Program; and WHEREAS, the U.S. Department of Housing and Urban Development (HUD) requires all housing authorities to review and revise, as necessary, allowances for resident paid utilities in Public Housing properties on an annual basis; and WHEREAS, the Dakota County Community Development Agency has contracted with The Nelrod Company to conduct a review of utility allowances and make recommendations based on an engineering method; and NOW, THEREFORE, BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners, That the updated Utility Allowance Schedule in Attachment A is approved effective January 1, 2018 for the Public Housing Program Approve Updated Payment Standards Schedule For The Housing Choice Voucher Program WHEREAS, the Dakota County Community Development Agency administers the federal Housing Choice Voucher Program; and WHEREAS, the CDA has reviewed the U.S. Department of Housing and Urban Development published Fair Market Rents to establish Payment Standards in accordance with 24 CFR for two regions within its jurisdiction; and WHEREAS, the implementation of the Payment Standards will be effective for October 2017 new admissions, moves and port-ins and November 2017 re-certifications. NOW, THEREFORE, BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners, That the following Payment Standard schedule is adopted effective September 19, 2017 for the Housing Choice Voucher Program. Region 1 Region 2 Unit Size Payment Standard Payment Standard 0 Bedroom $675 $650 1 Bedroom $880 $820 2 Bedroom $1,075 $1,025 3 Bedroom $1,450 $1,425 4 Bedroom $1,725 $1,700 5 Bedroom $1,925 $1,925 6 Bedroom $2,125 $2,125 Manufactured Home $411 $

6 Award Painting Contract To Elliott s Painting And Decorating Inc. For Routine Interior Painting Of Vacant CDA Units WHEREAS, the Dakota County Community Development Agency accepted bids for the necessary routine interior painting in vacant units to be completed at various CDA properties throughout Dakota County; and WHEREAS, funds are allocated from the operating budgets of each of the properties for the necessary painting work; and WHEREAS, Elliott s Painting and Decorating Inc. is the low responsive bidder; and WHEREAS, the bidding was done in conformance with state law for bidding. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Dakota County Community Development Agency, That a one-year painting contract, with a two-year renewal option, be awarded to Elliott s Painting and Decorating Inc Award Cleaning Contract to Brothers Manufacturing for Routine Cleaning of Vacant Units WHEREAS, formal bids were received on September 11, 2017 for the necessary routine cleaning in vacant units to be completed at various CDA properties throughout Dakota County; and WHEREAS, funds for the necessary cleaning work are to be allocated from each property s operating budget; and WHEREAS, Brothers Manufacturing is the low responsive bidder; and WHEREAS, the contract bidding was done in conformance with state law. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That this one-year cleaning contract, with a two-year renewal option, be awarded to Brothers Manufacturing Award Trash Services Contract To Republic Services For Routine Trash/Recycling Services At CDA Properties WHEREAS, the Dakota County Community Development Agency accepted bids for the necessary routine trash/recycling removal to be completed at various CDA properties throughout Dakota County; and WHEREAS, funds are to be allocated from the operating budgets of each of the properties for the necessary trash/recycling removal work; and WHEREAS, Republic Services is the low responsive bidder for Zone A, Zone B and Zone C; and WHEREAS, the bidding was done in conformance with state law for bidding. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Dakota County Community Development Agency, That the three-year trash/recycling removal contract for CDA properties in Zone A, Zone B, and Zone C be awarded to Republic Services Award Lawn And Snow Services Contracts For CDA Properties WHEREAS, formal bids were received on September 8, 2017 for the CDA s lawn and snow services contract broken down into six geographical zones; and WHEREAS, the bidding was done in conformance with state law for bidding. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Dakota County Community Development Agency, That one-year contracts, with the option for renewal for two additional years, for Lawn and Snow Services Contracts for CDA properties be awarded to Franklin Outdoor - 6 -

7 Services for Zone 1; Summit Custom Landscaping for Zones 2, 3, and 6; and Total Turf for Zones 4 and Approve Amendment To The Fiscal Year Ended June 30, 2017 Operating Budget For Housing Choice Vouchers WHEREAS, the Dakota County CDA has adopted an operating budget for the Fiscal Year Ended June 30, 2017; and WHEREAS, the Operating Budget Compliance Policy requires that a listing of budget transfers approved by the Executive Director be presented to the Board of Commissioners. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the budget amendment approved by the Executive Director for the Fiscal Year Ended June 30, 2017 pursuant to the requirements of the Operating Budget Compliance Policy are affirmed by the CDA Board. Motion: Commissioner Egan Second: Commissioner Holberg Ayes: 6 Nays: 0 Abstentions: 0 Slavik Gaylord Egan Atkins Workman Holberg Gerlach Cummings Yes No Absent Abstain CONSENT AGENDA Approve Record Of Disbursements August 2017 BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners that the August 2017 Record of Disbursements is approved as written Authorization To Execute A Housing Trust Fund Program Grant Agreement Between The Dakota County Community Development Agency And Minnesota Housing Finance Agency WHEREAS, The Dakota County Community Development Agency applied for Housing Trust Fund Program renewal funding in the amount of $401,304; and WHEREAS, Minnesota Housing Finance Agency has awarded the Dakota County Community Development Agency $402,000 for the Housing Trust Fund program. NOW, THEREFORE, BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners, That the Executive Director is authorized to execute documents and grant agreements accepting $402,000 of funding for the Housing Trust Fund Program Authorization To Execute A Housing Trust Fund Long-Term Homeless Program Grant Agreement Between The Dakota County Community Development Agency And Minnesota Housing Finance Agency WHEREAS, The Dakota County Community Development Agency applied for Housing Trust Fund Long- Term Homeless Program renewal funding in the amount of $376,464; and WHEREAS, Minnesota Housing Finance Agency has awarded the Dakota County Community Development Agency $375,000 for the Housing Trust Fund Long-Term Homeless program

8 NOW, THEREFORE, BE IT RESOLVED, that the Dakota County Community Development Agency Board of Commissioners, That the Executive Director is authorized to execute documents and grant agreements accepting $375,000 of funding for the Housing Trust Fund Long-Term Homeless Program Authorize Executive Director To Execute A Joint Powers Agreement Between The County Of Dakota And The Dakota County Community Development Agency For Site Investigation And Possible Remediation And Authorize Grant Submission To DEED And/Or Metropolitan Council WHEREAS, the County of Dakota ("County") and the Dakota County Community Development Agency ("CDA") have been working jointly on the investigation of environmental concerns on the Valley Ridge site in Burnsville; and WHEREAS, the County and CDA would like to further this work through a Joint Powers Agreement that would allow both organizations to utilize budgeted funds for site investigation, grant preparation and ultimately remediation of the site: and WHEREAS, with assistance from Dakota County staff, the CDA will be submitting a grant application(s) to the Department of Employment and Economic Development and/or the Metropolitan Council for site investigation; and NOW, THEREFORE, BE IT RESOLVED that the Dakota County Community Development Agency Board of Commissioners authorizes the CDA Executive Director to execute a Joint Powers Agreement between the County and the CDA for coordinating the remediation of environmental issues on the Valley Ridge site in Burnsville, subject to approval as to form by the Dakota County Attorney's office and approval by the Dakota County Board of Commissioners at a future meeting; and BE IT FURTHER RESOLVED that the CDA is authorized to submit grant application(s) to DEED and/or the Metropolitan Council for environmental site investigation costs on the Valley Ridge site in Burnsville Award Contract For The Roof Replacement Project At Park Ridge Place Senior Housing WHEREAS, the Dakota County Community Development Agency accepted bids on August 31, 2017 for the roof replacement at Park Ridge Place Senior Housing; and WHEREAS, G & V Construction Inc. was the lowest responsible, responsive bidder with a bid total of $128,800.00; and WHEREAS, funds to complete these projects are included in the FY 2018 Common Bond Fund budget; and WHEREAS, the Dakota County CDA proposes to execute a contract for the project to commence in September 2017; and NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the Deputy Executive Director is authorized to sign a contract for the roof replacement project at Park Ridge Place Senior Housing with G & V Construction Inc. in the amount of $128,800.00; and BE IT FURTHER RESOLVED that the Deputy Executive Director be authorized to execute change orders not to exceed $6, Approve The Write-Off Of Non-Expendable Equipment WHEREAS, during the CDA s year-end reconciliation process, the Finance Department noted certain items of non-expendable equipment had become damaged, outdated or is no longer in the CDA s possession; and WHEREAS, these items of non-expendable equipment should be removed from the CDA s accounting and property records

9 NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the non-expendable equipment listed in Attachment A: Equipment Disposal List totaling $52, be written off as of June 30, Approve Amendments To The Fiscal Year Ended June 30, 2017 Operating Budget WHEREAS, the Dakota County CDA has adopted an operating budget for the Fiscal Year Ended June 30, 2017; and WHEREAS, the Operating Budget Compliance Policy requires that a listing of budget transfers approved by the Executive Director be presented to the Board of Commissioners. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the budget amendments approved by the Executive Director for the Fiscal Year Ended June 30, 2017 pursuant to the requirements of the Operating Budget Compliance Policy are affirmed by the CDA Board Approve Carryover Of Fiscal Year Ended June 30, 2017 Budget Authority To Fiscal Year Ending June 30, 2018 WHEREAS, the Dakota County CDA has adopted an operating budget for the Fiscal Year Ended June 30, 2017; and WHEREAS, the CDA had $529,076 of uncompleted projects and work items relating to the operating budget for the Fiscal Year Ended June 30, 2017; and WHEREAS, the CDA wishes to carry forward the unspent budget authority relating to these uncompleted projects and items to the operating budget for the Fiscal Year Ending June 30, NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That Attachment A listing $529,076 of Fiscal Year Ended June 30, 2017 budget authority be carried forward to the operating budget for the Fiscal Year Ending June 30, Motion: Commissioner Gaylord Second: Commissioner Holberg Ayes: 5 Nays: 0 Abstentions: 0 Slavik Gaylord Egan Atkins Workman Holberg Gerlach Yes No Absent Abstain REGULAR AGENDA Approve The Commitment Of 2018 Low Income Housing Tax Credits Kathy Kugel presented. WHEREAS, pursuant to Minnesota Statutes Sections 462A.221 through 462A.225 (the Act ), the Dakota County Community Development Agency (the Agency ) is a suballocator of low income housing tax credits ( Tax Credits ); and WHEREAS, in accordance with Section 42 of the Internal Revenue Code of 1986, as amended (the Code ), by Resolution No , adopted by the Agency on March 21, 2017, following a public hearing for which notice was duly published, the Agency adopted a Qualified Allocation Plan for 2018 tax credits (the Qualified Allocation Plan ) setting forth criteria governing the award of the Agency s 2018 Tax Credits; and - 9 -

10 WHEREAS, because the members of the Dakota County Board of Commissioners are the ex-officio members of the Agency, the approval of such Resolution by the Agency satisfies the requirement that the Qualified Allocation Plan be approved by the applicable elected representative of the Agency; and WHEREAS, the Agency received one application for the Tax Credits by the first-round deadline, which the application was from the Rosemount II Limited Partnership, the general partner of which is the Dakota County CDA, for tax credits for the acquisition and construction of a new 40-unit townhome development in the City of Rosemount known as Prestwick Place Townhomes. WHEREAS, pursuant to Minnesota Statutes 462A.222, Subd. 3, any Tax Credits which are not committed by the Agency prior to Minnesota Housing Finance Agency s ( MHFA ) second round of applications are required to be returned to MHFA. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, as follows: 1. The Agency hereby finds and determines that: a. The application for Tax Credits submitted by the Rosemount II Limited Partnership is complete in all material respects. b. The allocation of Tax Credits requested for the Prestwick Place Townhomes project does not exceed the amount necessary for the financial feasibility of the Prestwick Place Townhomes project and its viability as a qualified low-income housing project throughout the compliance period. c. On the basis of the application submitted, the Tax Credit score for the Prestwick Place Townhome project is 63 points. 2. In making the determination set forth in 1b above, the Agency considered: (a) the sources and uses of funds and the total financing planned for the Prestwick Place Townhomes project; (b) any proceeds or receipts expected to be generated by reason of tax benefits; (c) the percentage of the housing credit dollar amount used for project costs other than costs of the intermediaries; and (d) the reasonableness of the developmental and operational costs of the Prestwick Place Townhomes project. 3. The Agency hereby approves the commitment of its 2018 Tax Credits to the Rosemount II Limited Partnership in the amount of $890, Staff is authorized to prepare, execute and deliver all documentation necessary or convenient to provide for the commitment of its 2018 Tax Credits pursuant to this resolution and the subsequent carryover and allocation of the same, based on findings made in accordance with the requirements of the Code at each such steps. Motion: Commissioner Egan Second: Commissioner Holberg Ayes: 5 Nays: 0 Abstentions: 0 Slavik Gaylord Egan Atkins Workman Holberg Gerlach Yes No Absent Abstain INFO Redevelopment Incentive Grant Program Discussion Informational Lisa Alfson presented. Lisa Alfson and Tony Schertler answered questions

11 Authorize The Levy Of A Special Benefit Tax Pursuant To Minn. Stat , Subd.6 And 83D.41, And Approve A Budget For The Year 2018 Lisa Alfson presented. Lisa Alfson and Tony Schertler answered questions. WHEREAS, the Dakota County Community Development Agency (the CDA ) is organized and existing under Minnesota Statutes, Section 383D.41, as amended (the Enabling Act ); and WHEREAS, pursuant to the Enabling Act the CDA has all of the powers and duties of a housing and redevelopment authority under the provisions of the Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections to (the HRA Act ), those powers of an Economic Development Authority under Minnesota Statutes, Sections to (the EDA Act ) expressly granted by the Dakota County Board, and the authority to levy the special benefits tax with the approval of the Dakota County Board as permitted under the HRA Act at such higher limit as may be permitted under either the HRA Act or the EDA Act; and WHEREAS, pursuant to the Enabling Act, for the purpose of applying the provisions of the HRA Act to the CDA, Dakota County (the County ) is deemed to have all powers and duties of a municipality under the HRA Act and the Board of Commissioners of the County is deemed to have all powers and duties of a governing body of a municipality under the HRA Act; and WHEREAS, pursuant to the Enabling Act and the HRA Act, the CDA is authorized to levy and collect a special benefit tax of up to percent of the estimated market value upon all taxable property, real and personal, within the County (the Special Benefit Tax Levy ) with the approval of the County Board; and WHEREAS, the CDA is required pursuant to Section , Subdivision 6, of the HRA Act to formulate and file a budget with the County, and the amount of the Special Benefit Tax Levy for the following year shall be based on that budget; and WHEREAS, the CDA Board has before it, for its consideration, a copy of a budget for the use of 2018 levy proceeds, based on a Special Benefit Levy of percent of estimated market value, for the CDA s Senior Housing Development, rental assistance, and Housing Opportunities Enhancement (HOPE) programs. NOW, THEREFORE, BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners, That: Section 1. Section 2. Section 3. The Year 2018 levy budget of $7,624,549 presented for consideration by the Board of Commissioners of the CDA is hereby in all respects approved. Staff of the CDA are hereby authorized and directed to forward the budget of the CDA to the County as required by Section , Subdivision 6 of the HRA Act, and to request approval by the County of the $1,386,282 portion of the levy allocable to the difference between percent and percent of estimated market value. There is hereby levied pursuant to Minnesota Statutes, Section , Subdivision 6 a special benefit tax in the amount of the sum of (a) the lesser of percent of the estimated market value within the County or $6,238,268 and (b) subject to approval of the County, an additional levy in the amount of the lesser of percent of the estimated market value within the County or $1,386,282 for a total of percent of the estimated market value within the County or $7,624,549. Motion: Commissioner Egan Second: Commissioner Holberg Ayes: 4 Nays: 1 Abstentions: 0 Slavik Gaylord Egan Yes No Absent Abstain

12 Atkins Workman Holberg Gerlach INFO Executive Director s Update Informational Tony Schertler provided updates. ADJOURNMENT Adjournment BE IT RESOLVED, by the Dakota County Community Development Agency Board of Commissioners hereby adjourns until Tuesday, October 17, Motion: Commissioner Slavik Second: Commissioner Gaylord Ayes: 6 Nays: 0 Abstentions: 0 Slavik Gaylord Egan Atkins Workman Holberg Gerlach Cummings Yes No Absent Abstain The CDA Board meeting adjourned at 5:27 p.m. CDA Board Chairperson CDA Board Secretary

13 Dakota County CDA Record of Disbursements For the month of September 2017 Date Amount Total Housing Assistance Disbursing TIF General Fund 09/01/17 $ 1,505, /15/17 $ 74, $ 1,579, /01/17 $ 78, /07/17 $ 342, /14/17 $ 445, /15/17 $ 2, /21/17 $ 612, /28/17 $ 464, $ 1,946, /08/17 $ 31, $ 31, /01/17 $ 237, $ 237, Total September 2017 Disbursements $ 3,794, September 2017 Payroll 09/01/17 $ 198, /15/17 $ 196, /29/17 $ 208, $ 603, Disbursement detail is available in the Finance Office. Chairperson

14 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION Approve Changes To Redevelopment Incentive Grant Program Guidelines Fiscal/FTE Impact: Meeting Date: 10/17/2017 None Department: Community & Economic Development Amount included in current budget Prepared By: Maggie Dykes Budget amendment requested Contact: Lisa Alfson FTE included in current complement Contact Phone: New FTE(s) requested Other: PURPOSE/ACTION REQUESTED Approve changes to the CDA Redevelopment Incentive Grant (RIG) Program Guidelines. SUMMARY At its September 19, 2017 meeting, the Dakota County CDA Board reviewed the Redevelopment Incentive Grant (RIG) program and discussed options for modifying the program. The Board requested staff make the following changes: Remove Historic Preservation from the list of eligible uses. No city has ever applied for a RIG grant for this activity. Require a 4:1 match ($4 of other funds for every $1 of RIG funds) for cities with populations over 10,000. Cities with populations under 10,000 are still required to meet the 2:1 match. Change the time to use the grant from 18 months to 12 months, with a 12-month administrative extension. Require unused funds revert to the CDA general fund rather than be held for future RIG applications. Remove the Smart Growth criteria from the list of Competitive Criteria. Modify the term Livable Wage to Higher Wage. The changes have been incorporated into the RIG Program Guidelines (Attachment A). RECOMMENDATION CDA staff recommend approving the proposed changes to the RIG Program Guidelines. EPLANATION OF FISCAL/FTE IMPACT None. The changes to the RIG program will not affect the annual budget. Annual CDA Board approval is required to fund the RIG program; the Board may choose to whether to fund RIG at its discretion

15 Supporting Documents: Attachment A: Proposed RIG Guidelines Previous Board Action(s): Approve Changes To Redevelopment Incentive Grant Program Guidelines WHEREAS, the Dakota County Community Development Agency (CDA) established a Redevelopment Incentive Grant (RIG) program in 2006 to assist Dakota County cities with redevelopment goals and promote the development of affordable and supportive housing; and WHEREAS, to date, the program has awarded more than $11.6 million to 57 redevelopment projects and 23 planning activities, and leveraged nearly $100 million in other public and private funding for redevelopment efforts throughout Dakota County; and WHEREAS, the RIG program has an approved budget of available grant funds of $1,000,000 of CDA funds for the fiscal year ending June 30, 2018, and an expected $200,000 of Dakota County funds; and WHEREAS, the CDA Board reviewed the RIG Program Guidelines at its meeting of September 17, 2017, and determined changes should be made. Now, therefore, be it resolved by the Dakota County Community Development Agency Board of Commissioners, That the following changes will be made to the Redevelopment Incentive Grant Program Guidelines for the 2018 funding cycle: 1. Remove Historic Preservation from the list of eligible uses. 2. Require a 4:1 match ($4 of other funds for every $1 of RIG funds) for cities with populations over 10,000. Cities with populations under 10,000 shall meet a 2:1 match. 3. Change the time to use the grant from 18 months to 12 months, with a 12-month administrative extension. 4. Require unused funds revert to the CDA s general fund rather than be held for future RIG applications. 5. Remove the Smart Growth criteria from the list of Competitive Criteria. 6. Modify the term Livable Wage to Higher Wage. Executive Director s Comments: Strategic Plan Goal: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness Executive Director Department Director

16 4B - Attachment A 2017 Redevelopment Incentive Grant Program Guidelines I. PURPOSE The Redevelopment Incentive Grant Program (the RIG Program ) was created and funded by the Dakota County Community Development Agency (CDA) in September Additional funds for environmental assessments and site clean-up/remediation are provided by Dakota County Environmental Assessment Program for eligible activities. The goals of the RIG Program are to increase the tax base and improve the quality of life in Dakota County through two specific strategies: redevelopment and affordable housing development, as described below. Redevelopment. Blighted and under-utilized areas do not maximize their potential economic value and can negatively impact the livability of a community. These areas often require additional service costs, especially for those sites that may require environmental remediation due to the presence or potential presence of a hazardous substance, pollutant or contaminant. The responsibility for creating redevelopment activities rests primarily with the cities. Although Dakota County cities have been proactive in promoting redevelopment, they may lack sufficient resources to adequately plan for and implement redevelopment activities. The RIG Program is intended to assist Dakota County cities with those redevelopment projects that may not be undertaken by the private market to achieve the goals stated in a Redevelopment Plan. Affordable Housing. As part of a redevelopment program, the CDA strongly supports and encourages The RIG Program is intended to promote the development of affordable workforce and supportive housing. While the need for affordable housing continues to grow, the opportunities for the development and redevelopment of affordable housing are rare due to the cost and availability of properly zoned land. The inclusion of affordable housing in a Redevelopment Plan can provide benefits beyond the housing itself. Often affordable housing projects are the first to break ground in a redevelopment area and can be a catalyst for additional development. Furthermore, affordable and workforce housing units can provide both demand and potential employees for retail and commercial uses in a redevelopment area. II. PROGRAM INFORMATION Funding Available: Up to $1,200,000 is available for grants provided under the RIG Program during this funding cycle. The CDA will reserve $100,000 for Redevelopment Planning Grants. The maximum RIG Planning Grant amount is $15,000. The remaining funds will be used for Redevelopment Incentive Project Grants. For those plans and projects that require an environmental assessment and/or environmental remediation and/or site clean-up, $200,000 is reserved. The maximum RIG Project Grant amount is $250,

17 Eligible Applicants: Eligible applicants for this program are any statutory or home rule cities in Dakota County. Only one application per city, for each grant type, will be accepted. Application Instructions: It is the applicant s responsibility to be aware of the submission requirements needed to prepare a complete application in accordance with this guide. The application consists of the RIG Program application form and all required attachments. The application form is available on the Dakota County website: The applicant shall submit the application to the Dakota County CDA no later than 4:00 p.m. on Friday, January 20, 2018 at the Dakota County CDA. The applicant shall submit one (1) paper copy of the executed original application and all supporting documents to the CDA, and the application and all attachments by the deadline. Send one paper copy of the executed original application and attachments to the following: Dakota County CDA Attn: Margaret Dykes Assistant Director, Community & Economic Development 1228 Town Centre Drive Eagan, MN the application and all attachments to mdykes@dakotacda.state.mn.us In lieu of ed attachments, an applicant may provide the attachments on a flashdrive or other similar data storage devices to the CDA. Applications must be ed by the deadline to ensure it was received. Applications determined by the CDA to be incomplete or not legible will not be accepted and will be returned to the applicant. No applications, attachments or documentation will be accepted after the application due date unless requested by the CDA. Applications will not be accepted by facsimile. The CDA retains the right to reject in whole or in part any application for any reason. Contact Margaret Dykes, (651) or mdykes@dakotacda.state.mn.us, if you require assistance with submitting your application. III. DEFINITIONS Activity Those components that will be completed as part of the Project. Activities do not in and of themselves comprise the Project for which Redevelopment Project Grant funds are requested. Environmental Assessment The assessment or evaluation of a property to identify potential environmental contamination and assess potential liability coming from that contamination and costs to clean up the site. It includes conducting due diligence to determine who previously owned the site and how it was used, assessing the current conditions at the property, and determining if those uses or conditions present an environmental concern

18 Phase I Environmental Site Investigation - A historical review of the property s use, previous ownership and current conditions. Phase II Environmental Site Investigation - A subsurface site investigation that includes sample collection and analysis of soil, soil gas, and surface and groundwater, as appropriate. Housing Affordability - Affordable is defined as: (a) rental available to households at/below 50% of the area median income; (b) owner available to households at/below 80% of the area median income. Infill Development Residential or non-residential development that occurs on vacant sites scattered throughout more intensely developed areas of municipalities. These sites may have been undeveloped due to size, configuration, or access to other more easily developable land. Livable Higher Wage Jobs - Employment that pays $15 per hour or more in wages. Project The redevelopment component of the larger Redevelopment Plan for which Redevelopment Grant funds are requested. Redevelopment The reconstruction, re-use or change in use of any developed property that improves the economic use and value of property. Redevelopment is usually characterized by the clearance of existing structures and new construction, and the clean-up and remediation of a contaminated site. Redevelopment may also include infill development when such sites are part of a redevelopment area. The new use may be residential, commercial, retail, industrial or other use that the city supports. Redevelopment Plan A plan approved by the city council that identifies a redevelopment area, projects and activities to be undertaken within the area; the city objectives for the Redevelopment Plan area; the financial feasibility of the Redevelopment Plan; and the land use requirements, and development or redevelopment standards. A comprehensive plan and other city-wide planning documents do not qualify as Redevelopment Plans under the RIG Program. Response Action Plan - The detailed plan to remediate and/or manage contamination at a brownfield site. Background information on site history, environmental conditions, and the planned property use is required to present the context and rationale for the proposed response actions. IV. REDEVELOPMENT PLANNING GRANTS The Redevelopment Planning Grant funding is restricted to activities directly related to a future redevelopment project (e.g., market analysis, financial feasibility studies, concept development, site design, zoning studies, engineering studies, and environmental studies, environmental assessments including Phase I assessments, and development of Response Action Plans) to be developed as part of a Redevelopment Plan, as defined above. Redevelopment Planning Grants may be used to fund activities that are required to establish a Redevelopment Plan. As such, the

19 Redevelopment Plan is not required to be in place to be eligible for a Redevelopment Planning Grant, so long as the Redevelopment Planning Grant is intended to be used to assist in the development of a Redevelopment Plan. The application must meet the following threshold criteria to be scored: Application must be approved by the respective city council. There must be a minimum leverage rate of 1 to 1 ($1 of other funds for every $1 of Redevelopment Planning Grant). The city must be supportive of affordable housing and the CDA s mission. o A resolution containing the following required provision must be adopted by the city: the City is supportive of affordable housing and of the CDA s mission, to improve the lives of Dakota County residents through affordable housing and community development. To apply for a Redevelopment Planning Grant, the Redevelopment Planning Grant Application and required attachments must be submitted. V. REDEVELOPMENT PROJECT GRANTS The Redevelopment Project Grant funding is restricted to the Eligible Activities, defined below, necessary to prepare for the Redevelopment identified in the Redevelopment Plan. To apply for a Redevelopment Project Grant, the Redevelopment Project Grant Application and required attachments must be submitted Eligible Activities: The Redevelopment Project Grant is restricted to the following activities that are often required in preparation for redevelopment: 1. Property acquisition (see Other Requirements below) 2. Relocation payments to occupants of property acquired with program funds 3. Clearance and demolition expenses related to site assemblage for redevelopment and consistent with the Redevelopment Plan 4. Environmental investigation and/or remediation activities on the impacted site. These may include Phase II environmental site assessments, hazardous building materials survey, contaminated soil excavation and disposal, ground water remediation, contaminated soil remediation, soil vapor remediation and mitigation. Please see the Dakota County Environmental Assessment Program website for additional activities that could be funded. The website can be found here: ges/default.aspx 5. Historic preservation (rehabilitation of properties with national or local significance in order to preserve that significance) 6.5.Necessary public infrastructure improvements required for the redevelopment project. including but not limited to parking structures, sewer and water, sidewalks, street reconstruction, and stormwater management systems 7.6.Streetscape improvements when located within the defined redevelopment area

20 8.7.Geotechnical corrections to soil conditions that require extraordinary expense to remediate Ineligible Activities: The Redevelopment Grant cannot be used toward the following activities in a redevelopment project: 1. Construction and associated soft costs related to the project to be built on the redeveloped site 2. Costs not included in the application, including those incurred prior to the award date 3. Rehabilitation of non-historic buildings or house moving 4. Administration expenses 5. Public facilities such as city halls, city parks, city water treatment facilities, etc. Threshold Criteria: Applicants must first meet the following threshold criteria to be considered for funding. No points are assigned to these criteria. 1. Proposed activities must be identified in the Redevelopment Plan 2. Application must be approved by the respective city council by resolution that includes the Required Resolution Provisions (attached). 3. Cities over 10,000 population Application must demonstrate a minimum leverage rate of 2 to 14 to 1 ($2 4 of other funds for every $1 of Redevelopment Grant). Cities under 10,000 must demonstrate a minimum leverage of 2 to 1 ($2 of other funds for every $1 of Redevelopment Grant). 4. Letter of support for the redevelopment project from the current property owner. 5. The city must be supportive of affordable housing and the CDA s mission, as demonstrated by the city s adoption of the Required Resolution Provisions (attached) and the city s history of supporting affordable housing developments. Competitive Criteria: If the application meets all threshold criteria, the application will then be reviewed and ranked on the following competitive criteria. To be eligible for RIG funding, the application must meet a minimum of 20 points in Competitive Criteria #3 - #7, as defined here: 1. Leverage. Applications should include a variety of other funding sources committed to the project. Other funding sources could include CDBG, TIF, DEED, Metropolitan Council grants, or other public and private resources. Evidence of funding commitments must be submitted with application. Leverage is applied to both the Redevelopment Plan and Project. [10 Maximum Points] 2. Readiness to Proceed. The applicant should be ready to proceed with the identified project upon funding award (e.g. zoning approvals in place, site control secured, financing commitments in place). Readiness to Proceed is applied to the Project. [15 Maximum Points] 3. Housing Affordability. Preference will be given to Redevelopment Plans and Projects that include workforce or supportive housing units. Housing Affordability is applied to both the Redevelopment Plan and Project. [20 Maximum Points] 4. Economic Benefit. The project should have a defined impact on the local economy. This impact is measurable through growth in property taxes and new and/or retained Livable

21 Higher Wage Jobs. Economic Benefit is applied to both the Redevelopment Plan and Project. [15 20 Maximum Points] 5. Environmental Improvement. Redevelopment Plans and Projects that will protect, preserve or enhance the environment are encouraged. Projects should facilitate the investigation and/or cleanup of sites to promote public health and safety, and protect and improve the environment in addition to providing economic and community benefits. Applicant should work with Dakota County Environmental Resources Department and State agencies to identify the optimum remedy Environmental Improvement is applied to both the Redevelopment Plan and Project. [20 Maximum Points] 6. Smart Growth Concepts. Redevelopment Plans should consider the connections to public transit, walkable neighborhoods, compact development, preservation of open space, inclusion of green space, and a mix of land uses that can help the economic viability of an area and build a sense of community. Smart Growth is applied to the Redevelopment Plan. [10 Maximum Points] 7.6.Removal of Blight. Points will be awarded to projects that demolish blighted properties and/or properties with obsolete structures beyond their useful life. For purposes of this application, slum or blight applies to structures detrimental to the safety, health, morals or welfare of the community by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light, and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination of these factors. Removal of blight is applied to the Project. [10 15 Maximum Points] Other Requirements: Property acquisition may be undertaken by a public, private or non-profit entity as part of a redevelopment project. In all instances, the CDA will provide the Redevelopment Incentive Project Grant to the city as grantee, which in turn, will provide those funds to another acquiring entity if necessary. The corresponding grant agreement will specify conditions whereby the acquiring entity will have no recourse to the CDA in matters related to the acquisition of real property. If federal funds are used in whole or in part for a project, including property acquisition, clearance and/or construction, all provisions of 49 CFR (the Uniform Relocation Act or URA) must be followed. With all funding sources, the cost of property acquisition must be based on a determination of fair market value as derived from an independent appraisal and/or county assessed value. If the final acquisition price exceeds the appraised value, the Redevelopment Incentive Grant must be less than this value with the additional cost being paid by public or private matching funds. Minnesota Statutes et. seq. and related case law also require that in all acquisitions undertaken by an acquiring entity without federal participation, the authority must provide relocation assistance as a cost of acquisition. Additionally, the Minnesota Supreme Court held in In Re Wren, 699 N.W.2d 758 (Minn. 2005) that an authority may be responsible for certain relocation costs when property is acquired by a private developer if the activities of the authority and the developer are so intertwined to produce a joint acquisition of the project

22 As identified in the Competitive Criteria, leverage of other funding sources is a requirement to apply for a RIG grant. In addition to identifying leverage, the applicant shall also explain in a narrative how they have exhausted other resources for the project. VI. SELECTION Applications will be reviewed by CDA staff. Those applications that include an environmental improvement component will also be reviewed by Dakota County Environmental Resources staff. Applications must be complete and received at the CDA by the due date. Applications meeting the threshold criteria and scoring highly on the competitive criteria will be submitted to the CDA Board of Commissioners for approval. After selection and approval by the CDA Board of Commissioners, the CDA will issue a letter of commitment and enter into a grant agreement with the city. VII. GRANT AGREEMENT CDA staff will work with the city and enter into a Grant Agreement. This agreement will detail the terms and conditions of the grant and allow for the release of funds to the city. The grant agreement will require funds to be spent within months of the date of the agreement. Waivers and extensions to any provision in the agreement requested by the grantee will be considered on a case by case basis depending on the merits of the request. Grant recipients may request one 12-month extension to be approved administratively for those projects that are making substantial progress towards completion. Projects that are not underway within months from the award date are not eligible for an extension. Grants will be paid on a reimbursement basis. Grantees will be required to submit semi-annual progress reports to the CDA

23 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION Award Contract For Appliance Replacement At Orchard Square, Parkview Plaza, Cameo Place And Cortland Square Senior Housing Developments Fiscal/FTE Impact: Meeting Date: 10/17/2017 None Department: Housing Development Amount included in current budget Prepared By: Troy Blakestad Budget amendment requested Contact: Kari Gill FTE included in current complement Contact Phone: New FTE(s) requested Other: PURPOSE/ACTION REQUESTED Authorize Deputy Executive Director to execute a contract for appliance replacement Authorize change order authority SUMMARY On September 28, 2017 at 10:00 a.m. a formal bid opening was conducted at the Dakota County CDA office for the Refrigerator & Electric Range Replacement Project for four Senior Housing Developments. The following developments included in this project are: Orchard Square, Cortland Square, Parkview Plaza and Cameo Place. This was a publicly advertised project. Bid requests were made to five specific contractors in addition to being publicly advertised (Attachment A). One bid was received from MJ s Contract Appliance, Inc. The bid tabulation is Attachment B. The CDA budgeted $170, for this project and the bid came in at $132, In a project of this size, it is possible there may be change orders that would result in minor changes in the project. To deal with these change orders more efficiently while avoiding delays in installation, we are recommending that the Deputy Executive Director be authorized to approve additional change orders up to the amount of $6, (this is 5% of the bid). It is expected that the appliances will be ordered this fall with installation beginning in mid-january 2018 and be completed by mid-june RECOMMENDATION Housing Development staff recommends approval of this contract based on the bid amount as compared with past contracts of a similar nature and this contractor's history with the CDA as a well-performing appliance contractor. EPLANATION OF FISCAL/FTE IMPACT Funds are available for this project from the approved current fiscal year budget

24 Supporting Documents: Attachment A: Affidavit of Publication Attachment B: Bid Tabulation Previous Board Action(s): Resolution No. 17- Award Contract For Appliance Replacement At Orchard Square, Parkview Plaza, Cameo Place And Cortland Square Senior Housing Developments WHEREAS, formal bids were received on September 28, 2017 for the Refrigerator and Electric Range replacement project for four Senior Housing Developments in Dakota County; and WHEREAS, MJ s Contract Appliance, Inc. submitted a low bid of $132,799.70; and WHEREAS, MJ s Contract Appliance, Inc. meets the bidder qualifications in the specification; and WHEREAS, the contractor is being recommended on both low bid results and their experience in appliance replacement with the Dakota County CDA; and WHEREAS, the Dakota County CDA will be using funds in the approved current fiscal year budget to cover the cost of the project; and NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the Deputy Executive Director be authorized to sign a contract on behalf of the Dakota County CDA with low bidder, MJ s Contract Appliance Inc. in an amount of $132,799.70; and BE IT FURTHER RESOLVED, That the Deputy Executive Director be authorized to approve change orders in an amount not to exceed $6, Executive Director s Comments: Strategic Plan Priorities: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness Executive Director Department Director

25 - 25-4C - Attachment A

26 - 26 -

27 - 27-4C - Attachment B

28 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION Authorization To Execute Agreement With Kutak Rock LLP For Legal Counsel Services Meeting Date: Department: Prepared By: Contact: Contact Phone: /17/2017 Community & Economic Development Lisa Alfson Lisa Alfson Fiscal/FTE Impact: None Amount included in current budget Budget amendment requested FTE included in current complement New FTE(s) requested Other: PURPOSE/ACTION REQUESTED Seek authorization to execute agreement with Kutak Rock LLP for legal counsel services. SUMMARY Barbara Portwood, attorney with Stinson Leonard Street LLP, retired at the end of June Ms. Portwood was the Dakota County CDA s sole bond/issuer, tax credit, and housing finance (both multi-family and single family) legal counsel for more than 30 years. It was determined by staff that such legal services and expertise are necessary for the continuation of specific CDA business and decided to issue a Request For Proposal (RFP) to secure a new bond/issuer/tax credit/housing finance legal counsel. The CDA does also have agreements with Dakota County Attorney s Office (CAO), Faegre Baker Daniels law firm, and Landrum Dobbins law firm for specific legal counsel needs. The CAO and Landrum Dobbins do not have bond/issuer, tax credit, or housing finance expertise. Staff drafted a detailed legal counsel RFP in mid-july, reaching out to other housing finance agencies for recommendations, sample RFPs, and list of potential RFP responders. The RFP was issued August 10 and distributed to 11 legal firms recommended by CDA colleagues and known to have bond and housing finance capacity. Six proposals were received by the deadline of August 29. An internal team of four staff reviewed the six proposals and evaluated them on: experience; ability to staff and perform legal services promptly; cost of services; lack of conflict of interest; and outcome of reference checks and oral interviews (if conducted). The review team met with the CDA Executive Director to present summaries of the proposals and recommendation to interview two firms for consideration. Interviews were conducted October 3 with two firms. The final recommendation was made by the review team in consultation with the CDA Executive Director. RECOMMENDATION Based upon experience, very competitive rates, and depth of knowledge in all the areas needed, staff recommends entering into a contract with Kutak Rock LLP. Kutak Rock LLP will provide the following legal services: bond/issuer counsel; public finance; low income housing tax credits (sub-allocator); research & analysis needs for housing, redevelopment and economic development projects; and drafting needed agreements. EPLANATION OF FISCAL/FTE IMPACT Kutak Rock LLP will be utilized on an as-needed basis. At times, including specific bond counsel needs and tax credit counsel, fees will be paid by applicants seeking our housing financing tools. Funds have been budgeted in the Community & Economic Development (CED) budget to cover legal services. There is no retainer for these services. Hourly rates are significantly less than our former housing finance legal counsel

29 Supporting Documents: Previous Board Action(s): Resolution No. 17- Authorization To Execute Agreement With Kutak Rock LLP For Legal Counsel Services WHEREAS, the Dakota County CDA sole bond/issuer, tax credit, and housing finance (both multi-family and single family) legal counsel for more than 30 years retired June 2017; and WHEREAS, it was determined by staff that such legal services and expertise are necessary for the continuation of specific CDA business and a Request For Proposal (RFP) to secure a new bond/issuer/tax credit/housing finance legal counsel was issued on August 10, 2017; and WHEREAS, six proposals were received by the deadline of August 29, reviewed by staff, and two finalists were interviewed October 3, 2017; and WHEREAS, based upon the evaluation criteria of experience; ability to staff and perform legal services promptly; cost of services; and lack of conflict of interest; and outcome of reference checks and oral interview, staff are recommending the CDA enter into an agreement with Kutak Rock LLP for legal counsel services. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the CDA Executive Director is authorized to enter into an agreement with Kutak Rock LLP for a variety of legal counsel services, primarily housing finance needs. Executive Director s Comments: Strategic Plan Priorities: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness Executive Director Department Director

30 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION Schedule A Public Hearing To Receive Comments On Sale Of Land Owned By The Rosemount Housing Limited Partnership (Carbury Hills) Located At Connemara Trail and Highway 3, Rosemount Fiscal/FTE Impact: Meeting Date: 10/17/2017 None Department: Housing Development Amount included in current budget Prepared By: Lori Zierden Budget amendment requested Contact: Kari R. Gill FTE included in current complement Contact Phone: New FTE(s) requested Other: PURPOSE/ACTION REQUESTED Schedule a public hearing to receive comments on sale of land owned by the Rosemount Housing Limited Partnership (RFHLP) for which the Dakota County Community Development Agency (CDA) is General Partner. SUMMARY In 2006, the CDA purchased property for the future development of Carbury Hills, a family townhome development. After the CDA purchased the property and prior to development, the City of Rosemount realigned and improved Connemara Trail. After that work was completed, a portion of the Carbury Hills property became a remnant parcel located on the south side of Connemara Trail (Carbury Hills is on the north side of Connemara Trail). This 0.18 acre remnant parcel was subsequently platted as Rosemount Housing Outlot A (see site map in Attachment B). The parcel is not buildable. Rosemount Housing Outlot A is located adjacent to Rosemount Cemetery (Cemetery). Last year, a representative from the Cemetery contacted the CDA expressing interest in the parcel. The CDA worked with U.S. Bank Community Development Corporation (Limited Partner of RFHLP) and received their approval to sell Rosemount Housing Outlot A. Staff worked with the Dakota County Attorney s office and received guidance regarding selling land that is owned by a Partnership to which the CDA is the General Partner. Minn. Stat states that property held in the name of a limited partnership may be transferred by an instrument of transfer executed by a General Partner in the limited partnership name. The CDA s Acquisition and Disposition Policy (Policy) applies to land the CDA conveyed to a limited partnership. The Policy requires that property values shall be determined by consulting with appropriate responsible sources to determine Fair Market Value and includes County Market Value. The County Market Value for this parcel is $2,400. The CDA has received interest from the Cemetery to purchase the property for the County Market Value. Prior to selling Rosemount Housing Outlot A, a public hearing is required. A draft of the hearing notice to be published pursuant to Board approval is included in Attachment A. RECOMMENDATION Staff recommends to set the date of the public hearing to receive comments on the sale of Rosemount Housing Outlot A for November 14, The best use of the parcel is to add it to the Rosemount Cemetery property. EPLANATION OF FISCAL/FTE IMPACT Any proceeds would be returned to the RFHLP. Currently the RFHLP is paying the Cemetery to mow the parcel. If the parcel is sold, the RFHLP would no longer have this expense for the parcel

31 Supporting Documents: Attachment A: Public Hearing Notice Attachment B: Site Map Previous Board Action(s): Resolution No. 17- Schedule A Public Hearing To Receive Comments On Sale Of Land Owned By The Rosemount Housing Limited Partnership (Carbury Hills) Located At Connemara Trail and Highway 3, Rosemount WHEREAS, in 2006 the Dakota County Community Development Agency (CDA) acquired property near Connemara Trail and Robert Street in Rosemount for the future development of Carbury Hills; and WHEREAS, the City of Rosemount realigned Connemara Trail prior to the platting and development of Carbury Hills; and WHEREAS, when the property was platted for Carbury Hills, there was a non-buildable remnant parcel located on the south side of Connemara Trail and was platted Rosemount Housing Outlot A; and WHEREAS, the CDA was approached by Rosemount Cemetery, adjacent owner to Rosemount Housing Outlot A, about purchasing the parcel; and WHEREAS, Rosemount Housing Outlot A provides no benefit or value to Rosemount Housing Limited Partnership or the CDA and it has been determined that it would be in the best interest of the Partnership and CDA to sell the parcel to Rosemount Cemetery; and WHEREAS, the CDA s Acquisition and Disposition Policy requires a public hearing be held for the disposition of land; and NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That a public hearing will be conducted at the CDA Board of Commissioners regular meeting on November 14, 2017 at the CDA office located at 1228 Town Centre Drive, Eagan, MN for the purpose of receiving public comments on the sale of Rosemount Housing Outlot A; and BE IT FURTHER RESOLVED, That staff is directed to publish the public notice in a newspaper with local distribution and on the agency s website to seek comments on the sale of the land. Executive Director s Comments: Strategic Plan Priorities: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness Executive Director Department Director

32 4E - Attachment A PUBLIC NOTICE DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Notice is hereby given that the Dakota County Community Development Agency (CDA) will hold a public hearing on Tuesday, October 17, 2017 beginning at 3:30 p.m. to consider the sale, transfer and/or exchange for property currently owned by the Rosemount Housing Limited Partnership for which the CDA is General Partner. The Dakota County CDA Board of Commissioners will hold this hearing at the CDA offices located at 1228 Town Centre Drive, Eagan, Minnesota. The proposed parcel to be sold, transferred and/or exchanged is hereby described Rosemount Housing Outlot A. Persons seeking more information on the proposed sale, transfer and/or exchange of property should contact Lori Zierden at the Dakota County CDA, 1228 Town Centre Drive, Eagan, MN 55123, lzierden@dakotacda.state.mn.us, telephone Public comments may be submitted orally or in writing to the CDA through the public hearing held on October 17,

33 Rosemount Housing Outlot A 4E - Attachment B October 9, :1, ft m Property Information Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification.

34 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION Authorize Application For The Metropolitan Council Tax Base Revitalization Account Fiscal/FTE Impact: Meeting Date: 10/17/2017 None Department: Housing Development Amount included in current budget Prepared By: Lori Zierden Budget amendment requested Contact: Kari Gill FTE included in current complement Contact Phone: New FTE(s) requested Other: PURPOSE/ACTION REQUESTED Authorize application to Metropolitan Council Tax Base Revitalization Account for the Valley Ridge redevelopment site. SUMMARY On September 19, 2017 the Dakota County CDA Board approved Resolution No which authorized staff to submit applications to DEED and/or Metropolitan Council for site investigation at the Valley Ridge site in Burnsville. Through our Joint Powers Agreement with Dakota County, staff will be submitting an application to either the DEED Contamination Cleanup Grant or Metropolitan Council Tax Base Revitalization Account. Both applications are due November 1 and each agency requires specific language in the clauses of their Resolution. The following Resolution includes the required clauses for Metropolitan Council Tax Base Revitalization Account and will be submitted if the CDA applies for that grant. RECOMMENDATION Staff recommends approving the attached Resolution that authorizes CDA staff to submit an application to Metropolitan Council s Tax Base Revitalization Account. EPLANATION OF FISCAL/FTE IMPACT If grant application is successful, funds will be utilized per the Joint Powers Agreement between Dakota County and the Dakota County CDA

35 Supporting Documents: Previous Board Action(s): ; 9/19/2017 Resolution No. 17- Authorize Application For The Metropolitan Council Tax Base Revitalization Account WHEREAS, the Dakota County Community Development Agency (CDA) is an eligible applicant as determined by the Metropolitan Council, and therefore eligible to make an application to apply for funds under the Tax Base Revitalization Account; and WHEREAS, the CDA has identified a contamination investigation project within the City of Burnsville that meet the Tax Base Revitalization Account s purposes and criteria and are consistent with and promote the purposes of the Metropolitan Livable Communities Act and the policies of the Metropolitan Council s adopted metropolitan development guide; and WHEREAS, the CDA has the institutional, managerial, and financial capability to ensure adequate project and grant administration; and WHEREAS, the CDA certifies that it will comply with all applicable laws and regulations as stated in the contract grant agreements; and WHEREAS, the CDA finds that the required contamination investigation will not occur through private or other public investment within the reasonably foreseeable future without Tax Base Revitalization Account grant funding; and WHEREAS, the CDA represents that it has undertaken reasonable and good faith efforts to procure funding for the activities for which Livable Communities Act Tax Base Revitalization Account funding is sought but was not able to find or secure from other sources funding that is necessary for the completion of the investigation and states that this representation is based on the following reasons and supporting facts: Timing is of the essence. There are two parties committed to developing the site. However, prior to selling the parcel and returning the parcel to the tax rolls, investigation and clean-up work needs to take place. There are very limited funding opportunities and both Dakota County and Dakota County CDA have committed and expended funds to this effort. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That CDA staff is authorized to submit an application for Metropolitan Council Tax Base Revitalization Account grant funds and, if the CDA is awarded a Tax Base Revitalization Account grant for this project, the CDA will be the grantee and agrees to act as legal sponsor to administer and be responsible for grant funds expended to the project contained in the Tax Base Revitalization grant application submitted on November 1, Executive Director s Comments: Strategic Plan Priorities: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness Executive Director Department Director

36 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION Authorize Application To The Minnesota Department Of Employment And Economic Development (DEED) For Contamination Cleanup Grant And Committing Local Match And Authorizing Contract Signature Fiscal/FTE Impact: Meeting Date: 10/17/2017 None Department: Housing Development Amount included in current budget Prepared By: Lori Zierden Budget amendment requested Contact: Kari Gill FTE included in current complement Contact Phone: New FTE(s) requested Other: PURPOSE/ACTION REQUESTED Authorize application to DEED for Contamination Cleanup Grant for the Valley Ridge redevelopment site Committing local match Authorize contract signature SUMMARY On September 19, 2017 the Dakota County CDA Board approved Resolution No which authorized staff to submit applications to DEED and/or Metropolitan Council for site investigation at the Valley Ridge site in Burnsville. Through our Joint Powers Agreement with Dakota County, staff will be submitting an application to either DEED Contamination Cleanup Grant or Metropolitan Council Tax Base Revitalization Account. Both applications are due November 1 and each agency requires specific language in the clauses of their Resolution. The following Resolution includes the required clauses for the DEED Contamination Cleanup Grant and will be submitted if the CDA applies for that grant. RECOMMENDATION Staff recommends approving the attached Resolution that authorizes CDA staff to submit an application to DEED Contamination Cleanup Grant, commits local match, and authorizes contract signature. EPLANATION OF FISCAL/FTE IMPACT If grant application is successful, funds will be utilized per the Joint Powers Agreement between Dakota County and the Dakota County CDA

37 Supporting Documents: Previous Board Action(s): ; 9/19/2017 Resolution No. 17- Authorize Application To The Minnesota Department Of Employment And Economic Development (DEED) For Contamination Cleanup Grant And Committing Local Match And Authorizing Contract Signature WHEREAS, the Dakota County Community Development Agency (CDA) will act as the legal sponsor for project(s) contained in the Contamination Cleanup Grant Program to be submitted on November 1, 2017; and WHEREAS, the Executive Director is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of Dakota County CDA; and WHEREAS, the CDA has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration; and WHEREAS, that the sources and amounts of the local match identified in the application are committed to the project identified; and WHEREAS, the CDA has not violated any Federal, State, or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice; and WHEREAS, that upon approval of its application by the state, Dakota County CDA may enter into an agreement with the State of Minnesota for the above-referenced project(s), and that Dakota County CDA certifies that it will comply with all applicable laws and regulations as stated in all contract agreements. NOW, THEREFORE, BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners, That the Executive Director is hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. Executive Director s Comments: Strategic Plan Priorities: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness Executive Director Department Director

38 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION Senior Housing Production Discussion - Informational Fiscal/FTE Impact: Meeting Date: 10/17/2017 None Department: Housing Development Amount included in current budget Prepared By: Kari Gill Budget amendment requested Contact: Kari Gill FTE included in current complement Contact Phone: New FTE(s) requested Other: PURPOSE/ACTION REQUESTED Provide information on senior housing needs in Dakota County and projections for financing additional CDA senior housing developments. SUMMARY The CDA s Senior Housing Development Program has produced 29 buildings located throughout Dakota County and serves almost 1,800 households with affordable rental housing. As part of the CDA s Strategic Plan priority for Focused Housing Programs, staff has been working with our external consultants to update information about needs and financial projections to help determine whether or not to continue to expand the program. Patty McCullough with Health, Planning & Management Resources will present updated senior housing needs data (Attachment A). Ms. McCullough is very familiar with the CDA s Senior Housing Program and assisted with previous needs assessments for determining the first three phases of senior housing development by the CDA. The CDA s financial advisor, Kathy Aho with Springsted, will present the financial implications of developing additional senior housing and what the financial impact would be to issue bonds for the construction of additional senior housing. Ms. Aho has worked on previous financial projections for the program and has been the financial advisor on prior bond issues. At the July 18, 2017 CDA Board meeting staff presented a summary of CDA owned vacant buildable land inventory. The agency does not have any sites in its inventory that would be suitable for development of senior housing. If continued production is desired by the Board, staff is ready to begin looking for potential development sites and engage in conversations with cities to gauge support for those sites. RECOMMENDATION Informational only. EPLANATION OF FISCAL/FTE IMPACT None. Supporting Documents: Attachment A: Market Analysis for Affordable Independent Senior Housing in Dakota County Executive Director s Comments: Strategic Plan Priorities: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness Executive Director Department Director

39 5A - Attachment A MARKET ANALYSIS FOR AFFORDABLE INDEPENDENT SENIOR HOUSING IN DAKOTA COUNTY COMPLETED FOR: DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY EAGAN, MINNESOTA AUGUST 2017 Presented By: Health Planning & Management Resources, Inc. Loretto, Minnesota Zellner Senior Health Consulting, LLC St. Paul, Minnesota

40 INTRODUCTION AND OVERVIEW Purpose of Study Dakota County Community Development Agency contracted with Health Planning & Management Resources, Inc. to update projections of demand by City/Market Area for affordable independent senior housing. The update will provide guidance to staff and others for future policy decisions related to development of affordable independent senior housing. The update is based on the previous studies completed for the Community Development Agency, the most recent done in The defined Market Areas as well as other assumptions are consistent. The income qualifications for affordable independent senior housing was based on Fiscal Year 2017 Income Limits Summary by Household Size defined by Housing and Urban Development. Presentation of Analysis The following is presented. Definition of Market Areas used Total population for each Market Area for 2017 and 2022 Population 65 and older for each market area for 2017 and 2022 Projection of population 65 and older by age segments for Dakota County through 2050 Inventory of existing affordable senior housing in Dakota County Projection of demand based on HUD definitions/income for extremely low income, very low income and low income Summary of demand and supply Impact of demand on adult children in Dakota County desiring to bring at least one older parent to live in Dakota County to be near for caregiving and support Impact of assets of seniors on potential for qualifying for affordable senior housing Affordable independent senior living units within market rate senior housing Conclusions

41 DEFINITION OF MARKET AREAS USED Because some townships and/or cities were extremely small, they were combined with larger cities. The following is the list of market areas that have been used since the initial study was done. Apple Valley Market Area Apple Valley City Burnsville Market Area Burnsville City Eagan Market Area Eagan City Farmington Market Area Farmington City Castle Rock Township Empire Township Greenvale Market Area Greenvale Township Sciota Township Waterford Township Hampton Market Area Hampton City Hampton Township New Trier City Hastings Market Area Hastings City Douglas Township Miesville City Ravenna Township Marshan Township Nininger Township

42 Inver Grove Heights Market Area Inver Grove Heights City Lakeville Market Area Lakeville City Eureka Township Mendota Heights Market Area Mendota Heights City Lilydale City Mendota City Sunfish Lake City Randolph Market Area Randolph City Randolph Township Rosemount Market Area Rosemount City Coates City South St. Paul Market Area South St. Paul City Vermillion Market Area Vermillion City Vermillion Township West St. Paul Market Area West St. Paul City Dakota County Market Area Dakota County

43 TOTAL POPULATION AND PERCENT CHANGE AND POPULATION 65 + AND PERCENT CHANGE FOR THE MARKET AREAS FOR 2017 AND 2022 TOTAL POPULATION AND PERCENT CHANGE IN THE TOTAL POPULATION FOR MARKET AREAS AND DAKOTA COUNTY 2017 AND 2022 Market Area 2017 Total Population 2022 Total Population Percent Change Apple Valley 50,948 52, Burnsville 61,381 62, Eagan 65,454 66, Farmington 28,014 30, Greenvale 1,819 1, Hampton 1,824 1, Hastings 29,046 30, Inver Grove Heights 35,665 37, Lakeville 62,811 66, Mendota Heights 12,724 13, Randolph 1,289 1, Rosemount 24,700 26, South St. Paul 20,388 20, Vermillion 1,743 1, West St. Paul 20,179 20, Market Area Totals 417, , Dakota County 419, ,

44 TOTAL SENIOR POPULATION (65+) AS A PERCENT OF THE TOTAL POPULATION FOR MARKET AREAS AND DAKOTA COUNTY 2017 AND 2022 Market Area Total Senior Population 2017 Total Senior Population 2022 Percent Change Seniors as a Percent Of Total Population 2017 Seniors as a Percent Of Total Population 2022 Percent Change Apple Valley 7,154 8, % 14.0% 17.1% +3.1% Burnsville 8,981 10, % 14.6% 16.8% +2.2% Eagan 7,581 10, % 11.6% 15.1% +3.5% Farmington 2,192 2, % 7.8% 9.3% +1.5% Greenvale % 18.0% 20.8% +2.8% Hampton % 14.2% 16.5% +2.3% Hastings 4,728 5, % 16.3% 18.4% +2.1% Inver Grove Heights 5,416 6, % 15.2% 17.8% +2.6% Lakeville 5,677 7, % 9.0% 11.9% +2.9% Mendota Heights 3,026 3, % 22.8% 27.0% +4.2% Randolph % 14.1% 17.3% +3.2% Rosemount 2,533 3, % 10.3% 12.5% +2.2% South St. Paul 2,939 3, % 14.4% 16.8% +2.4% Vermillion % 13.5% 17.2% +3.7% West St. Paul 3,903 4, % 19.3% 21.0% +1.7% Market Area Totals 1 54,982 68, % 13.2% 15.7% +2.5% Dakota County 55,376 68, % 13.2% 15.8% +2.6% Source: Environics Analytics

45 A concern in many communities with the significant growth that is occurring in the senior population as the baby boomers move through the senior age cohort is that seniors combined with persons age 18 and under will become a higher percentage of the dependent population than desirable. Dependence ratios refer to the percentage of persons who are in a given population that would not be working and contributing to the tax base. This results in concerns about being able to increase taxes necessary to support the continued development of the community because of resistance from persons who are on fixed incomes (seniors), and it can also negatively impact the ability to pass school bond measures. In reviewing Dakota County demographic data, the total population is increasing slightly more rapidly (3.75 percent) than the population 65 and older (2.5 percent). Though the senior population is increasing, this maintains a more desirable balance

46 POPULATION CHANGE BY AGE SEGMENTS FOR PERSONS 55 YEARS OF AGE AND OLDER DAKOTA COUNTY MINNESOTA 2025 TO 2050 Age Segment Population Change Percent Change ,749 27,855 30,930 35,026 34,720 41,635 11, % ,611 29,309 27,631 30,862 35,184 34,971 2, % ,120 32,145 29,001 27,391 30,719 35,249 5, % ,569 30,264 32,329 29,109 27,480 30,978 6, % ,986 24,063 29,711 31,627 28,415 26,773 7, % ,570 17,416 22,168 27,370 29,159 26,191 14, % ,560 14,585 21,257 28,457 35,801 41,029 30, % Total , , , , , ,826 78, % Total , , , , , ,220 64, % Source: Woods & Poole Economics, Inc

47 Long Term Demographics for Dakota County The long term demographic projections indicate that for the next 25 years, the demand for senior independent living will increase significantly. Equally important to note is that the largest increase in the senior population will be in the 75+ age cohorts. When researchers project demand for affordable independent senior housing, industry assumptions are that between three and six percent (dependent on income) of persons will desire to access independent senior living, and 15 percent of persons aged 75 and older will desire to access independent senior living. Inventory of Affordable Independent Senior Living in Dakota County Inventory Pages 10 through 17 present a current inventory of affordable independent senior living in Dakota County. This includes the CDA projects, other HUD financed projects, and projects using low income tax credits to designate all or some of its units affordable, using HUD guidelines. A one person household was used as the threshold in this analysis. Limits for a two person household would increase by approximately $4,000. Income Limits The 2017 Income Limits established by HUD for a one person household are: Extremely Low Income: $19,000 Very Low Income: $31,650 Low Income: $47,

48 The 2017 Income Limits established by HUD for a two person household are: Extremely Low Income: $21,700 Very Low Income: $36,200 Low Income: $54,400 Tax Credit Developments The tax credit developments have a portion of their units that have income limits based on how the project was financed. The remainder of the development would not have those income limits. The number of units that have income limits that make them affordable based on HUD s definition are included in the inventory. These units can include a variety of units in a development and do not have to be specifically dedicated units only available to persons with limited incomes. Generally, these units are the smaller units in a development. A new development in Apple Valley, The Legends, with 163 units, is a totally affordable development with income restrictions. However, the lowest income is $37,980, and persons are responsible for paying the full rent charged, and rent is not adjusted based on income. The lowest rent in this development is $936 a month. Dakota County CDA has incorporated 63 premium units total in six developments. These units have no income limits. Only the affordable units are identified in the inventory

49 PROFILE OF AFFORDABLE INDEPENDENT SENIOR HOUSING IN DAKOTA COUNTY DAKOTA COUNTY CDA, EAGAN, MINNESOTA AUGUST 2017 (PAGE 1 OF 8) Facility Capacity Percent Occupied on the Day Contacted Year Built Type of Room Available Services/Amenities included in Rent Package Services/Amenities Available for Purchase Through Building Apple Valley Villa Garrett Avenue Apple Valley, MN % : 1-Bedroom s.f. 23: 2-Bedroom 728-1,275 s.f. 6: 3-Bedroom 1,162-2,000 s.f. Emergency Response System, Activities, Scheduled Transportation, Utilities 1-Meal/Day, Laundry, Linen, Housekeeping, Garage: $50/Month, Assisted Living Package for Purchase or A la Carte Cobblestone Square Emperor Avenue Apple Valley, MN % : 1-Bedroom s.f 30: 2-Bedroom s.f Emergency Response System, Utilities Except Electricity Smoke Free Property Underground Heated Parking: $45/Month Cortland Square th Street Apple Valley, MN % : 1-Bedroom s.f. 19: 2-Bedroom s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month Orchard Square th Street West Apple Valley, MN % : 1-Bedroom s.f. 18: 2-Bedroom 750-1,000 s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month, Congregate Dining Site The Legends of Apple Valley Granite Avenue Apple Valley, MN Opens in May 2018; 55 units leased : 3 Bedroom 57: 2 Bedroom 44: 1 Bedroom Utilities All Building and Grounds Amenities Available Underground Heating Parking

50 PROFILE OF AFFORDABLE INDEPENDENT SENIOR HOUSING IN DAKOTA COUNTY DAKOTA COUNTY CDA, EAGAN, MINNESOTA AUGUST 2017 (PAGE 2 OF 8) Facility Capacity Percent Occupied on the Day Contacted Year Built Type of Room Available Services/Amenities included in Rent Package Services/Amenities Available for Purchase Through Building Eagle Ridge Place Eagle Ridge Drive Burnsville, MN % : 1 Bedroom s.f. 23: 2 Bedroom 750 1,000 s.f. Emergency Response System, Utilities-Except Electric Underground Heated Parking: $45/Month, Congregate Dining Site Ebenezer Ridge Point Community Drive Burnsville, MN % : 1-Bedroom 540 s.f. Emergency Response System, Utilities-Except Electric None Valley Ridge 1921 Burnsville Parkway Burnsville, MN % : 1 Bedroom s.f. 37: 2 Bedroom 940 1,035 s.f. Emergency Response System, Utilities Except Electric Amenities of Buildings and Grounds Available Services in the development available for purchase Park Ridge Place Burnsville Parkway Burnsville, MN % : 1 Bedroom s.f. 20: 2 Bedroom 750 1,000 s.f. Emergency Response System, Utilities-Except Electric None

51 PROFILE OF AFFORDABLE INDEPENDENT SENIOR HOUSING IN DAKOTA COUNTY DAKOTA COUNTY CDA, EAGAN, MINNESOTA AUGUST 2017 (PAGE 3 OF 8) Facility Capacity Percent Occupied on the Day Contacted Year Built Type of Room Available Services/Amenities included in Rent Package Services/Amenities Available for Purchase Through Building The Commons on Marice 1385 Marice Drive Eagan, MN % 2000 Studios: Bed and Bathroom Flexible Building amenities and services Lakeside Pointe 1220 Town Centre Drive Eagan, MN % : 1-Bedroom 660 s.f. 30: 2-Bedroom 890 s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month Oakwoods of Eagan 2065 Park Center Drive Eagan, MN % : 1-Bedroom s.f. 21: 2-Bedroom 750-1,000 s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month, Congregate Dining Site Oakwoods East 2061 Park Center Drive Eagan, MN % : 1-Bedroom s.f. 26: 2-Bedroom s.f. Emergency Response System, Utilities Except Electricity Smoke Free Property Underground Heated Parking: $45/Month

52 PROFILE OF AFFORDABLE INDEPENDENT SENIOR HOUSING IN DAKOTA COUNTY DAKOTA COUNTY CDA, EAGAN, MINNESOTA AUGUST 2017 (PAGE 4 OF 8) Facility Capacity Percent Occupied on the Day Contacted Year Built Type of Room Available Services/Amenities included in Rent Package Services/Amenities Available for Purchase Through Building O Leary Manor 1220 Town Center Drive Eagan, MN % : 1-Bedroom s.f. 27: 2-Bedroom 750-1,000 s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month Red Oaks Manor 315 Spruce Street Farmington, MN % : 1-Bedroom 600 s.f. 1: 2-Bedroom 625 s.f. Emergency Response System, Utilities None Spruce Place 300 Spruce Street Farmington, MN % : 1-Bedroom 6: 2-Bedroom Utilities-Except Electric None Vermillion River Crossing Dushane Parkway Farmington, MN % : 1-Bedroom s.f. 30: 2-Bedroom 940 1,035 s.f. Emergency Response System, Utilities None Oak Ridge Manor 1199 Bahls Drive Hastings, MN % : 1-Bedroom 480 s.f. Emergency Response System, Utilities None

53 PROFILE OF AFFORDABLE INDEPENDENT SENIOR HOUSING IN DAKOTA COUNTY DAKOTA COUNTY CDA, EAGAN, MINNESOTA AUGUST 2017 (PAGE 5 OF 8) Facility Capacity Percent Occupied on the Day Contacted Year Built Type of Room Available Services/Amenities included in Rent Package Services/Amenities Available for Purchase Through Building Mississippi Terrace 301 Ramsey Hastings, MN % : 1-Bedroom s.f. 13: 2-Bedroom 750-1,000 s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month, Congregate Dining Site Rivertown Court 1791 South Frontage Road Hastings, MN % : 1-Bedroom s.f. 27: 2-Bedroom s.f Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month Cahill Commons 5840 Cahill Avenue Inver Grove Heights, MN % : 1-Bedroom 22: 2-Bedroom s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month Carmen Court 5825 Carmen Avenue Inver Grove Heights, MN % : 1-Bedroom s.f. 17: 2-Bedroom 750-1,000 s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month, Congregate Dining Site Prairie View Heights 8121 College Trail Inver Grove Heights, MN % N/A 39: 1-Bedroom s.f. Emergency Response System, Utilities None Hillcrest Pointe 9170 Cahill Inver Grove Heights, MN % : 1 Bedroom 720 s.f. 28: 2 Bedroom 920 1,020 s.f. Emergency Response System, Utilities Underground Heated Parking: $45/Month

54 Facility Crossroads Commons Glasgow Avenue Lakeville, MN Fairfield Terrace Holt Avenue Lakeville, MN Mainstreet Manor th Street West Lakeville, MN Winsor Plaza Howland Avenue Lakeville, MN Parkview Plaza 730 South Plaza Drive Mendota Heights, MN Village Commons 720 Linden Street Mendota Heights, MN Cameo Place 3103 Lower 147 th Street Rosemount, MN PROFILE OF AFFORDABLE INDEPENDENT SENIOR HOUSING IN DAKOTA COUNTY DAKOTA COUNTY CDA, EAGAN, MINNESOTA AUGUST 2017 (PAGE 6 OF 8) Capacity Percent Occupied on the Day Contacted Year Built % % % % % % % 1997 Type of Room Available 45: 1-Bedroom 715 s.f. 42: 2-Bedroom s.f. 23: 1-Bedroom 540 s.f. 1: 2-Bedroom 740 s.f. 34: 1-Bedroom 17: 2-Bedroom s.f. 44: 1-Bedroom s.f. 20: 2-Bedroom 750-1,000 s.f. 28: 1-Bedroom s.f. 12: 2-Bedroom 930-1,021 s.f. 40: 1-Bedroom 664 s.f. 20: 2-Bedroom s.f. 30: 1-Bedroom s.f. 14: 2-Bedroom 750-1,000 s.f Services/Amenities included in Rent Package Emergency Response System, Utilities Except Electricity Smoke Free Property Utilities-Except Electric Emergency Response System, Utilities Except Electricity Emergency Response System, Utilities Except Electricity Emergency Response System, Utilities Except Electricity Emergency Response System, Utilities Except Electricity Emergency Response System, Utilities Except Electricity Services/Amenities Available for Purchase Through Building Underground Heated Parking: $45/Month None Underground Heated Parking: $45/Month Underground Heated Parking: $45/Month, Congregate Dining Site Underground Heated Parking: $45/Month, Congregate Dining Site Underground Heated Parking: $45/Month Underground Heated Parking: $45/Month, Congregate Dining Site

55 Facility PROFILE OF AFFORDABLE INDEPENDENT SENIOR HOUSING IN DAKOTA COUNTY DAKOTA COUNTY CDA, EAGAN, MINNESOTA AUGUST 2017 (PAGE 7 OF 8) Capacity Percent Occupied on the Day Contacted Year Built Type of Room Available Services/Amenities included in Rent Package Services/Amenities Available for Purchase Through Building Rosemount Plaza 2900 West 145 th Street Rosemount, MN % : 1-Bedroom 600 s.f. 1: 2-Bedroom N/A s.f. Emergency Response System, Utilities None Cambrian Commons Cambrian Avenue Rosemount, MN % : 1 Bedroom s.f. 26: 2 Bedroom 950 1,020 s.f. Emergency Response System, Utilities None Nan McKay 200 Marie Avenue South South St. Paul, MN % : 1-Bedroom ~540 s.f. N/A s.f. Utilities Congregate Dining Site Dakota Heights th Avenue North South St. Paul, MN % : 1-Bedroom s.f. 25: 2-Bedroom s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month, Congregate Dining Site River Heights Terrace 1720 Thompson Avenue South St. Paul, MN % : 1-Bedroom 713 s.f. 12: 2-Bedroom 880 s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month Thompson Heights 1350 Thompson Avenue South St. Paul, MN % : 1-Bedroom s.f. 24: 2-Bedroom s.f. Emergency Response System, Utilities Except Electricity Smoke Free Property Underground Heated Parking: $45/Month

56 PROFILE OF AFFORDABLE INDEPENDENT SENIOR HOUSING IN DAKOTA COUNTY DAKOTA COUNTY CDA, EAGAN, MINNESOTA AUGUST 2017 (PAGE 8 OF 8) Facility Capacity Percent Occupied on the Day Contacted Year Built Type of Room Available Services/Amenities included in Rent Package Services/Amenities Available for Purchase Through Building John E. Carroll 300 Grand Avenue West South St. Paul, MN % : 1 Bedroom ~540 s.f. Utilities Congregate Dining Site Haskell Court 140 East Haskell Street West St. Paul, MN Kruse Street Limited Partnership 1275 Kruse Street West St. Paul, MN % % : 1-Bedroom s.f. 15: 2-Bedroom 750-1,000 s.f. 12: 1-Bedroom 4: 2-Bedroom N/A s.f. Emergency Response System, Utilities Except Electricity Utilities-Except Electric Underground Heated Parking: $45/Month Garage Mount Carmel Manor 1560 Bellows Street West St. Paul, MN % : 1-Bedroom 550 s.f. Emergency Response System, Utilities-Except Electric None The Dakotah 900 South Robert Street West St. Paul, MN % : 1-Bedroom s.f. 17: 2-Bedroom 820-1,035 s.f. Emergency Response System, Utilities Except Electricity Underground Heated Parking: $45/Month 2, % Source: Care Options Network SeniorCare GuideBook, U.S. Department of Housing and Urban Development, Dakota County CDA, web searches

57 DEMAND FOR AFFORDABLE INDEPENDENT SENIOR LIVING IN 15 MARKET AREAS AND DAKOTA COUNTY The following tables are presented. Demand for each Market Area and Overall Market Area for 2017 Summary of Supply and Demand for each Market Area and Overall Market Area Calculation of Additional Demand for Adults Desiring to Bring One or More Elderly Parent to Dakota County Demand for 2022 was not completed because the supply will change from 2017 and In addition, the income limits will also change. However, the reader should note that the population 65 and older is projected to grow by 23.9 percent between 2017 and 2022 in the defined Market Area. Thus, the reader can assume that the growth in demand during that time period will be approximately the same as the growth in the senior population

58 DEMAND FOR AFFORDABLE INDEPENDENT SENIOR HOUSING BY ETREMELY LOW, VERY LOW AND LOW INCOME SENIOR HOUSEHOLDS IN FIFTEEN MARKET AREAS AND DAKOTA COUNTY 2017 Market Areas Extremely-Low Very-Low Low Total Apple Valley Burnsville Eagan Farmington Greenvale Hampton Hastings Inver Grove Heights Lakeville Mendota Heights Randolph Rosemount South St. Paul Vermillion West St. Paul Market Area Totals 1 1, ,782 Dakota County 1, ,804 1 The income categories of <$19,999, $19,999-$29,999, and $30,000-$49,999 were used to calculate the demand. These were the closest matches to the HUD guidelines that were available with existing demographic data

59 SUMMARY OF SUPPLY AND DEMAND FOR AFFORDABLE SENIOR HOUSING BASED ON SENIOR HOUSEHOLDS ONLY IN THE DEFINED MARKET AREAS AND DAKOTA COUNTY 2017 Market Area Total Market Demand for Extremely- Low, Very- Low, and Low Income Units Existing Supply Total Unmet Demand Apple Valley Burnsville Eagan Farmington Greenvale Hampton Hastings Inver Grove Heights Lakeville Mendota Heights Randolph Rosemount South St. Paul Vermillion West St. Paul Market Area Totals 1 2,782 2, Dakota County 2,804 2,

60 The calculation for demand for adult children living in Dakota County who would desire to bring a parent to live in Dakota County was estimated through the following process. In 2005, based on the research conducted by the communities of Apple Valley, Burnsville and Eagan prior to that time, Dakota County CDA incorporated the demand including adult children who would desire to bring one or more parent to live in Dakota County based on the research. The communities conducted a written survey mailed to households with head of household age The purpose of the research was to determine what level of demand there may be for seniors not currently living in Dakota County to move to Dakota County. It was assumed that adult children would desire to bring one or more parent to live near them for caregiving and participation in their lives. Included in the questions was whether an adult parent could afford to live in general market rate senior housing or would need affordable options. Though the research was conducted some time ago, the dynamic of desiring to move aging parents closer is still a reality. In market rate senior housing research, researchers assume that there will be residents from outside of the geographic market area that they consider, and a primary part of that assumption is the adults in the community moving parents to be near them. Based on the research, it was assumed that 4.5 percent of adult children households would desire to move at least one parent to be near them. Based on survey feedback, it was also assumed that 50 percent of these seniors would need to be able to access affordable senior housing or would need financial assistance to live in market rate senior developments. Conservatively, each household was only counted to have one parent that would desire to move/would move. The following table incorporates this demand into the overall demand for affordable independent senior housing in Dakota County

61 SUMMARY OF SUPPLY AND DEMAND FOR AFFORDABLE INDEPENDENT SENIOR HOUSING INCLUDING DEMAND FROM ADULT CHILDREN FOR THE MARKET AREA 2017 Market Area Demand for Independent Senior Living Units Minus Existing Units Estimated Adult Children Households Needing Housing for Elderly Parents Total Demand (Demand for Affordable Units Minus Existing Units Plus Demand From Adult Children Desiring Housing for Older Parents) Apple Valley Burnsville Eagan Farmington Greenvale Hampton Hastings Inver Grove Heights Lakeville Mendota Heights Randolph Rosemount South St. Paul Vermillion West St. Paul Market Area Totals ,560 1,744 Dakota County 206 1,560 1,

62 Observations Related to the Demand for Affordable Senior Housing in Dakota County Impact of Assets of Senior Households Qualifying for Affordable Housing with Income Limits Definition of Net Worth The U.S. Census Bureau calculates net worth by age. The following table reflects net worth of older persons with total net worth and net worth excluding home equity. Net worth is the money left over if the person sold everything he/she owns of value and paid off every debt owed. Assets according to the U.S. Bureau of the Census include equity in a home, savings, investments and retirement accounts. They even include what equity, if any, people have in their cars or trucks, but they don t include things like jewelry or pension plans. Median Net Worth by Age The following chart presents the median net worth by age including equity in a home and excluding equity in the home. Interestingly, net worth peaks in the years old and then declines to below the average for 65 and older in the 75 and older

63 Source: U.S. Bureau of the Census 2015; updated 2017 The average retiree will receive $16,320 annually in Social Security in Impact of Net Worth and Social Security on Ability to Afford Senior Housing The rule of thumb for most financial advisers is that a person who is retired should tap retirement savings at about four percent per year. For the person with median net worth and average social security, income would be $23,140 or $1,928 per month. If a person does not have a pension (not a retirement account), this would be very low income based on HUD s average median income adjusted by household size for a one person household. In Dakota County, because of the value of homes, the average income would likely be higher. For all persons 65 and older, the median home value would be $143,194. According to Environics, the median home price in Dakota County in 2017 was $248,861. This is a difference of $105,667. If we add an additional four percent to the $105,667, income would raise to $27,367. This would still be classified as very low income for a one person household

64 In the researcher s experience, senior households who are living in independent senior housing are very reluctant to spend down assets at a higher rate to meet needs. They are concerned about how long they will live and being able to meet their needs as they age. They are also concerned about a spouse having enough to live on if one has to go into an assisted living or care center. If either the person or spouse would need to be in assisted living, the monthly fees are likely to be nearly $6,000 for a person with average support needs. There are several considerations to take into account related to assets and affordable housing. A persons assets can be assigned a percentage value that could potentially be generated and that is added to other items that are counted in income. The financial rule of thumb of four percent would be reasonable. In doing market research for senior housing, researchers assume income from assets when determining what level of monthly fee/rent households would be willing/able to spend. Persons with significant assets would most likely seek out senior housing developments that are much more costly, e.g., continuing care retirement communities with all levels of senior living, projects that require a significant sum down when moving in, projects with more amenities, etc

65 Affordable Senior Living Units within Market Rate Senior Housing The researcher evaluated whether it was likely that there would be affordable living units in market rate developments that did not have any designated affordable units. Based on previously completed market research, nine market rate developments in Dakota County were considered. Averaging the lowest price unit in these developments, persons/households would pay $19,200 annually for the smallest apartment and minimal services. If households spent 30 percent of their income, they would need an income of $64,000 to afford these units. Thus, these units will not help to meet the demand for affordable units

66 CONCLUSIONS There will be continued sustained demand for all of the affordable housing currently owned by the Dakota County Community Development Agency. The additional demand continues not only for the next five years but through the Year There is no reason to expect that the level of demand for independent senior housing will lessen in the future because senior households seeking this type of living want and need to move from their existing single family homes because of increased maintenance needs and desire to downsize. Though more developments like The Legends in Apple Valley and other private developments may address some of the demand through tax credit programs, the existing ones do not address the extremely low income and only a portion of the very low income (higher end) households. Households are expected to pay the set monthly rent, and there is no adjustment for income. In addition, a growing number of market rate developments require potential residents to provide financial data that they will be able to meet rental requirements for at least a two year time period. The developments are also clear that when the household no longer has the necessary income, they will have to move

67 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION Adopt 2018 CDA Board Of Commissioners Meeting Dates Fiscal/FTE Impact: Meeting Date: 10/17/2017 None Department: Administration Amount included in current budget Prepared By: Sara Swenson Budget amendment requested Contact: Sara Swenson FTE included in current complement Contact Phone: New FTE(s) requested Other: PURPOSE/ACTION REQUESTED Approve 2018 CDA Board of Commissioners monthly meeting dates. SUMMARY Upon review of calendars, including coordination with Dakota County and Commissioner commitments to other Boards and Committees, it is recommended that the monthly CDA Board meetings for 2018 be held as follows: Tuesday, January 23, 2018* *Annual Meeting at 3:15 p.m.; regular meeting at 3:30 p.m. Tuesday, February 27, 2018 Tuesday, March 27, 2018** **Budget Workshop from 1-3:30 p.m.; regular meeting at 3:30 p.m. Tuesday, April 24, 2018 Tuesday, May 22, 2018 Tuesday, June 19, 2018 Tuesday, July 17, 2018 Tuesday, August 21, 2018 Tuesday, September 18, 2018 Tuesday, October 23, 2018 Tuesday, November 27, 2018 Tuesday, December 18, 2018 Regular meetings will begin at 3:30 p.m. All meetings will be held at the CDA s office located at 1228 Town Centre Drive in Eagan. RECOMMENDATION CDA staff recommends adoption of the above calendar for EPLANATION OF FISCAL/FTE IMPACT None

68 Supporting Documents: Previous Board Action(s): Resolution No. 17- Adopt 2018 CDA Board Of Commissioners Meeting Dates NOW, THEREFORE, BE IT RESOLVED, that the Dakota County Community Development Agency Board of Commissioners hereby adopts the following 2018 meeting schedule: Tuesday, January 23, 2018 Annual Meeting at 3:15 p.m.; Regular Meeting at 3:30 p.m. Tuesday, February 27, 2018 Regular Meeting at 3:30 p.m. Tuesday, March 27, 2018 Budget Workshop at 1 p.m.; Regular Meeting at 3:30 p.m. Tuesday, April 24, 2018 Regular Meeting at 3:30 p.m. Tuesday, May 22, 2018 Regular Meeting at 3:30 p.m. Tuesday, June 19, 2018 Regular Meeting at 3:30 p.m. Tuesday, July 17, 2018 Regular Meeting at 3:30 p.m. Tuesday, August 21, 2018 Regular Meeting at 3:30 p.m. Tuesday, September 18, 2018 Regular Meeting at 3:30 p.m. Tuesday, October 23, 2018 Regular Meeting at 3:30 p.m. Tuesday, November 27, 2018 Regular Meeting at 3:30 p.m. Tuesday, December 18, 2018 Regular Meeting at 3:30 p.m. BE IT FURTHER RESOLVED, that the location for all of the 2018 meetings will be Boardroom at the CDA s office located at 1228 Town Centre Drive, Eagan, MN and; Executive Director s Comments: Strategic Plan Goal: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness Executive Director Department Director

69 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION Executive Director s Update Informational Fiscal/FTE Impact: Meeting Date: 10/17/2017 None Department: Administration Amount included in current budget Prepared By: Kaili Braa Budget amendment requested Contact: Tony Schertler FTE included in current complement Contact Phone: New FTE(s) requested Other: PURPOSE/ACTION REQUESTED Agency updates. SUMMARY Executive Director Tony Schertler will provide updates regarding topics related to agency operations and a preview of items that will be on the November 14, 2017 CDA Board meeting agenda. RECOMMENDATION N/A Informational Only EPLANATION OF FISCAL/FTE IMPACT N/A Executive Director s Comments: Strategic Plan Priorities: Recommend Action Item Type-Consent Focused Housing Programs Do Not Recommend Action Item Type-Discussion Collaboration Reviewed-No Recommendation Item Type-Informational Development/Redevelopment Reviewed-Information Only Financial Sustainability Submitted at Commissioner Request Operational Effectiveness Executive Director Department Director

70 MEMO October 12, 2017 TO: FROM: CDA Board of Commissioners Dakota County Manager and Physical Development Director City Administrators & Managers Tony Schertler, Executive Director RE: Status Report - Quarter 3, 2017 This Status Report provides summary information on the use of affordable housing and community development programs in Dakota County. The Status Report reflects statistics for the second quarter of 2017 and not the entire life of programs. As a reference tool, the appendix has an explanation of each program

71 Status Report Dakota County Quarter 3, 2017 Statistics through September 30, 2017 Rental Assisted Housing Development-Based Housing Programs end of Quarter 2 as of July 31 as of August 31 as of September 30 + CDA Housing Programs 1, , , , Project Based Housing Choice Vouchers Other Affordable Housing Programs , , , ,730 0 Total Development-Based Housing Units 2,952 2,818 2,952 2,818 2,952 2,818 2,952 2,818 0 Tenant-Based Housing Programs Tenant Based Housing Choice Vouchers 1, , , , Portable Incoming Vouchers (HCV) Outgoing Vouchers (HCV, FUP, VASH, HTF) Other Rental Housing Subsidy Programs Total Tenant-Based Housing Vouchers 1,296 1,568 1,287 1,523 1,302 1,523 1,300 1, Tenant-based program vouchers may be used by residents of development-based housing. Previous Quarter + Quarter Home Ownership Foreclosure Housing Improvement Programs Quarter 1 Quarter 2 Quarter 3 Quarter YTD Rehab & Improvement Loans Closed Weatherization Projects Completed $174,991 $121,882 $173,159 $145, $115,583 8 $174,714 $174,307 $127,811 6 $54, First Time Homebuyer Programs Quarter 1 Quarter 2 Quarter 3 Quarter YTD First Mortgage Loans Downpayment Assistance Loans Mortgage Credit Certificates Pre-Purchase Counseling Home Stretch Homebuyer Education Housing Rehab & Improvement Weatherization First Mortgage Loans Mortgage Credit Certificate Pre-Purchase Appointments Home Stretch Course Graph represents monthly data. Home Foreclosure Quarter 1 Quarter 2 Quarter 3 Quarter YTD 2016 Total Sheriff Sales Notice of Pendency Housing Rehab Funds Spent 2017 Sheriff Sales 2017 Notice of Pendency 2016 Sheriff Sales Youth Supportive Housing 1% CDA Property Portfolio Workforce Housing 28% Public Housing 11% Senior Housing 60% CDA Properties include: 29 Senior Housing Developments 24 Workforce Housing Developments 1 Youth Supportive Housing Development 323 units Scattered Site Public Housing Assisted Housing includes: Development-Based Housing Programs CDA Senior Housing CDA Workforce Housing CDA Youth Supportive Housing Section 8 Housing Choice Vouchers 202 Housing 811 Housing 236 Housing Low Rent Housing Non-CDA Bond Financed Housing Non-CDA Tax Credit Housing FMHA Tenant-Based Housing Programs Section 8 Housing Choice Vouchers Continuum of Care Bridges Unification Program Veteran Affairs Supportive Housing Housing Trust Fund Single Room Occupancy Program statistics are available upon request