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lennepin Hennepin County Memo DATE: May 8, 2001 TO: Board of Commissioners FROM: Richard P. Johnson, Deputy County Administrator 12)12).1 SUBJECT: Proposed Orono Senior Housing TIF District No. 1-1 Hearing Scheduled: Monday, May 14, 2001, at 7:30 p.m., Orono City Hall. Proposal: Orono has proposed creation of its first tax increment financing district to facilitate construction of 62 units of rental senior housing for persons of low and moderate income at the north west corner of Wayzata Boulevard and Brown Road. Fiscal Impact: This one-parcel TIF District will have a duration of 25 years of tax increment from receipt of the first tax increment,which is projected to occur in 2003. The district will have a life of 25 years from receipt of the first tax increment. The project,with an estimated $125,000,000 to $150,000,000 of total project costs, has secured funding from the Metropolitan Council of$1,200,000 in a Livable Communities Demonstration Account to assist in parking costs/public spaces. Sources of Public Funds: Uses of Public Funds: Tax Increment $2,030,000 Land/Bldg Acquisition $775,000 Inter-Fund Loans/Transfers 1,393,000 Site Improvements 100,000 Total Sources of Funds $3,423,000 Public Utilities 77,000 Streets/Sidewalks 562,000 Other Public Improvements 31,000 Interest on PAYG Note 1,159,000 Administrative Costs 70,000 Inter-fund Loans/Transfers 649,000 Total Project Costs $3,423,000 HENNEPIN COUNTY ROAD COSTS (Comments submitted by Jim Grube, Hennepin County Transportation Department): "In staff's opinion the traffic generated by this development can be carried by the inplace facilities and that no additional roadway improvements would be required:°-:.-,.,- The proposed right-in-Tight= ---4-;fc-=" _ out access to TH-12 from the site (west of Brown Road)would not meet County Access Spacing Guidelines. One option might be to reconfigure this access to orientate it to the existing median opening at Shaughnessy Avenue. If the access is reoriented,there would be issues of significant grades and the access would need to be coordinated with the adjacent property to the west. A second option might be to orientate all site access to the rear of the property,where there appears to be a future street/utility access between Brown Road and Willow Drive. Transportation Planning staff will be talking with Long Lake, Orono and Mn/DOT regarding the development of an access plan for this segment of TH-12 that could establish the pattern of local access and address traffic control. SUMMARY: Despite projecting a maximum allowable duration of 26 years of tax increment generation, it otherwise appears that the proposed Orono Housing TIF District No. 1-1 satisfies the preference of the Hennepin County Board of Commissioners for use of tax increment financing, as identified in Resolution 92- 10-017R1, adopted 10/27/92, because it targets public assistance to low to moderate income senior rental housing. A copy of this report will be sent to the City of Orono with a request that it be entered into the public record of the May 14, 2001, public hearing, to reflect the County's position on this proposal. (w:RevuOrono115142001 J)