Title
RESOLUTION AUTHORIZING DEVELOPMENT AGREEMENT WITH MH II APARTMENTS, INC. FOR DEVELOPMENT OF 72 RENTAL UNITS OF WORKFORCE HOUSING IN THE MILLER HILL AREA.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into an agreement, substantially in the form of that attached hereto as Exhibit A, with MH II Apartments, Inc., a Minnesota corporation for the development of 72 rental units of workforce housing in the Miller Hill area with assistance from the city in the amount of not to exceed $1,000,000, payable from Fund 262-020-5434 project CDDEED (Community Development, Planning, Grants & Awards) to be reimbursed from grant funds from the State of Minnesota, subject to approval of tax abatement resolutions by the City and St. Louis County.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize the City to enter into an agreement with MH II Apartments, Inc., for the development of a 72 unit rental apartment structure on Miller Hill north of Miller Trunk Highway and west of Joshua Street aimed at providing workforce housing for working families.
The City is in need of fostering the development of this kind of housing as it is currently in short supply and the inability to find housing for workers is having a negative effect on economic development efforts in the City.
Under this agreement and companion city and county abatement resolutions, the developer will be eligible to have a portion of its project costs, up to $1 Million, reimbursed from a State grant received for this project and in addition will be eligible for reimbursement through tax abatement of $250,000 each from the city and St. Louis County. The remaining portion of the costs for the $12 Million development will be paid for by the Developer.