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95-1171 Subst t � j � ! �-� � ��.,4 � �� Council File # S � � � � I � I�, S Green sheet # 3 y�S \ RESOLUTION CITY OF SAINT PAUL, MINNESOTA 3� . , Presented By Referred To Committee: ate RESOLUTION ELECTING TO PARTICIPATE IN P� � o�z THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT CALENDAR YEAR 1996 1 WHEREAS, the Metropolitan Livable Communities Act (1995 Minnesota Laws Chapter 255) 2 establishes a Metropolitan Livable Communities Fund which is intended to address housing 3 and other development issues facing the metropolitan area defined by Minnesota Statutes 4 section 473.121; and 5 WHEREAS, the Metropolitan Livable Communities Fund, comprising the Tax Base 6 Revitalization Account, the Livable Communities Demonstration Account and the Local 7 Housing Incentives Account, is intended to provide certain funding and other assistance to 8 metropolitan area municipalities; and 9 WHEREAS, a metropolitan area municipality is not eligible to receive grants or loans under 10 the Metropolitan Livable Communities Fund or eligible to receive certain polluted sites 11 cleanup funding from the Minnesota Department of Trade and Economic Development unless 12 the municipality is participating in the Local Housing Incentives Account Program under 13 Minnesota Statutes section 473.254; and 14 WHEREAS, the Metropolitan Livable Communities Act requires the Metropolitan Council 15 to negotiate with each municipality to establish affordable and life-cycle housing goals for that 16 municipality that are consistent with and promote the policies of the Metropolitan Council as 17 provided in the adopted Metropolitan Development Guide; and 18 WHEREAS b J une 30, 1996, each municipality must identify to the Metropolitan Council 19 the actions the municipality plans to take to meet the established housing goals; and 20 WHEREAS, the Metropolitan Council must adopt, by resolution after a public hearing, the 21 negotiated affordable and life-cycle housing goals for each municipality by January 15, 1996; 22 and 23 WHEREAS, a metropolitan area municipality which elects to participate in the Local 24 Housing Incentives Account Program must do so by November 15 of each year; and . ,: as-��1� p �20� 2 25 WHEREAS, for calendar year 1996, a metropolitan area municipality can participate under 26 Minnesota Statutes section 473.254 only if: (a) the municipality elects to participate in the 27 Local Housing Incentives Account Program by November 15, 1995; (b) the Metropolitan 28 Council and the municipality successfully negotiate affordable and life-cycle housing goals for 29 the municipality; and by January 15, 1996, the Metropolitan Council adopts by resolution the 30 negotiated affordable and life-cycle housing goals for each municipality; and 31 WHEREAS, bv se�arate resolution the Cit� Council will consider ado�ting the negotiated affordable and life-cycle housin� oals; 38 NOW, THEREFORE, BE IT RESOLVED THAT the City of Saint Paul hereby elects to 39 participate in the Local Housing Incentives Program under the Metropolitan Livable Communities Act during calendar year 1996. Absent Guerin =_�� Requested by Department of.: Harris Me�ar Grimm Re t tman T ne B a tey a By: Adopted by Council : Date �_\,\ qs �''� Form Approved by City Attorney Adopt'on Certified Co ncil Secretary By: . � By. Approved by M or: Date � 1 ,5 , i � Approved by Mayor for Submission to g ; �t/`'��G�� Council Y , � . By: r �S , ��, � P� 9/27/95 � REEN SHE�T _N 3 4 7 51 i DEPARTAAENT DIRECTiOR � CITY COUNCIL -- INITIAUDATE �tty LindbLd 6-6614 �ou � cm �rra+� � cirr c��ac MU p�� BUDfiET DIRECTOR � FlN. 8 MOT. SERVICE6 DIR. oNOEn wuron ton �asisrnrm p TOTAL #► OF SKiNATURE P1RliE8 1 (CUP A1.L LOCATIONS FOR l�IQNATUR� n�'r� �s'r�o: � Blectian to participate in local �ousing incent;ives acco�mt progr� �m�der tbe , �etropolitaa Livable Co�uaities Act. RECOMMENDATIONB: Approw (A) a Ry�a1(R) PERSONAL S@RVICE CONTRACTS MllST ANSWER TFIE ROLLOIIVING QUESTIONS: _ PLJINNMIO COMMISSION ,_ CIVIL BEAVICE COMMI88tON 1. Has tl�is p�►iOnMirm ever workM untH► � contratx t4r this dap�rUnent? _ Cls t�MIrN7TEE _ YE8 NO 2. Mas thi� p�noNifrm ever been a city employee,? — � — YE8 NO _ 018TRICT COURT _ 3. Doee M�is psrtonRirtn possess e skNl not na'maNY Po�es�d DY a�Y a►►snt dtY �r�o�ss� SuPP�I'TS WHN�1 COWrCIL OB�CTIVE7 YES NO Expleln all yq answsn on apanb d�t and Nt�ch to oe�n shMt x�mnrnaa w�.�. issu�, o�r+oart�m l�mo, wna. wnsn. wn.ro. nmr�: In order to obt$fn access to f�ds made available through the �etropolitaa �tvable Co�uait3es Act, Sai.nt Paul �ust elect to particfpste�_in��he psogra�. y �� S�P 27 1995 ��o: IVb4Y0R'S OFFt� 1. Access to regianal funds D18ADVANTAOEB � APPFlOVED: \ DI8AWi1NfAOE6 IF NOT APPROVED: �. IInable �o a��ss regional fugds RECEIVED �� 2 7 1995 . CtTY ATTORNEY . TOTAL AMOUNT OF TRAN�ACTION = � COST/NEVlNtlE tUDGETlO (GIACLE ONE) YES NO FUlWINO 80URCE • ACTIYITY MUMBER FINANCIAL INFORMATION: (EXPLAIN) ' Council File # � � n ! ! S � � ��, `' Green Sheet # � S RESOLUTION CITY OF SAINT P L, M NESOTA � ; Presented By Referred To ommittee: Date RESOLUTION NO. 95-9/27- RESOLUTION ELECTING TO PARTICIP E IN THE LOCAL HOUSING INCENTIVES ACCO T PROGRAM UNDER THE METROPOLITAN LIVABLE CO UNITIES ACT CALENDAR YEAR 199 1 WHEREAS, the Metropolitan Livable Communities Act (19 Minnesota Laws Chapter 255) establishes a 2 Metropolitan Livable Communities Fund which is intended o address housing and other development 3 issues facing the metropolitan azea defined by Minnesota tatutes section 473.121; and 4 5 WHEREAS, the Metropolitan Livable Communities F d, comprising the Tax Base Revitalization 6 Account, the Livable Communities Demonstration count and the Local Housing Incentives Account, is 7 intended to provide certain funding and other assi ce to metropolitan area municipalities; and 8 9 WHEREAS, a metropolitan area municipality ' not eligible to receive grants or loans under the 10 Metropolitan Livable Communities Fund or igible to receive certain polluted sites cleanup finding from 11 the Minnesota Department of Trade and E nomic Development unless the municipality is participating in 12 the Local Housing Incentives Account Pr gram under Minnesota Statutes section 473.254; and 13 14 WHEREAS, the Metropolitan Livabl Communities Act requires the Metropolitan Council to negotiate 15 with each municipality to establish fordable and life-cycle housing goals for that municipality that are 16 consistent with and promote the p icies of the Metropolitan Council as provided in the adopted 17 Metropolitan Development Guid , and 18 19 WHEREAS, by June 30, 199 , each municipality must identify to the Metropolitan Council the actions 20 the municipality plans to e to meet the established housing goals; and 21 22 WHEREAS, the Metro litan Council must adopt, by resolution after a public heazing, the negotiated 23 affordable and life-cy e housing goals for each municipality by January 15, 1996; and 24 25 WHEREAS, a me opolitan area municipality which elects to participate int he Local Housing Incentives 26 Account Progr must do so by November 15 of each year; and 27 28 WHEREAS, r calendar year 1996, a metropolitan area municipality can participate under Minnesota 29 Statutes sec 'on 473.254 only if: (a) the municipality elects to participate in the Local Housing Incentives 30 Account P gram by November 15, 1995; (b) the Metropolitan Council and the municipality successfully 31 negotiate fordable and life-cycle housing goals for the municipality; and (c) by January 15, 1996, the 32 Metro litan Council adopts by resolution the negotiated affordable and life-cycle housing goals for each 33 municipality; Rs-�� . 34 NOW, THEREFORE, BE IT RESOLVED THAT the City of Saint Paul hereby elects to participate in the 35 Local Housing Incentives Program under the Metropolitan Livable Communities Act d ng calendar year 36 1996. ORIGINAL Yeas Navs Absent Requested by Department of: a ev �imm uerin Pla in & Econ ic De lo ment arri s e ar e an une BY� Adopted by Counc' . Date Form Approved by City Attorney Adoption Certif ed by Council Secretary By: Approved by � or S ission to Approved by ayor: Date Counc' By: By: °l� - I l�l, ��•. CITY OF SAINT PAUL ;-._ ;. '= �- �. OFFICE OF THE CITY COUNCIL � MARIE GRIMM HELEN WELTER Cou�cilmember ` Legislative Aide CED COMMITTEE RS VICKI SHEFFER Secretary Marie Grimm, Chair Jerry Blakey Roberta Megard Marcia Moermond, Policy Analyst Date: October 25, 1995 COMMITTEE REPORT COMMiJNITY AND ECONOMIC DEVELOPMENT 1. Metropolitan Livable Communities Act (referred to CED 9/27/95) Committee recommended forwarding to Council a substitute resolution, which adds minor clarifying language which refers to a second, separate resolution regarding City eligibility for the Local Housing Incentives Account Program. (2-0) 2. Local Housing Incentives Account Program Committee recommended forwarding to Council a resolution so that the City may become eligible for funding through the Local Housing Incentives Account Program. (2-0) CITY HALL THIRD FLOOR SAINT PAUL, MINNESOT'A 55102 612/266-8660 8 e�#+ 46 Printed on Recycled Paper �S _��1 CITY OF SAINT PAUL 390 Ciry Ha!! Telepha�e: 612-266-8510 Norm Coleman, Mayor 15 West Kellogg Boulevurd Facsi�nile: 6/2-266-8513 Saint Paul, MN 55102 � October 12, 1995 TO: Councilmember Mike �iarris r FR. Chuck Armstrong C��- Intergovernmental Relations RE: Request for Information on Metropolitan Livable Communities Act I received your request for information regarding the Metropolitan Livable Communities Act and am quite pleased to be given the opportunity to describe how Saint Paul will benefit from entry into this program. Participation in the lobbying efforts for this legislation during the 1995 is a personal highlight in my 13 years of working the capitol. Before I get too far into the details, I think it is important to clarify that Saint Paul, as does Minneapolis, already meets or exceeds statutory requirements for entry into the program. You ask about the potential impact that entry into this program will have on Saint Paul. By adoption of the resolution, as it currently stands, that will be heard in the CED Committee on October 25, the City will gain access to two of the three program accounts. These are the Tax Base Revitalization Account and the Livable Communities Demonstration Account. The Tax Base Revitalization Account will provide approximately $6.5 million annually in the metropolitan area for the clean up of polluted sites. As you know, Saint Paul has about 1,000 acres of polluted land within its borders and access to this fund will greatly enhance our efforts to increase economic development and job creation. The Livable Communities Demonstration Account will provide $4.6 million in 1996 and $4.1 million each year afterwards to revitalize neighborhoods. This fund is intended to assist neighborhood projects that tie together housing, job creation and transit. Saint Paul can gain entry into the third account by passage of a set of negotiated housing goals. This is the Local Housing �? _ �s->>�►� Incentives Account that provides between $1 to $1.5 million annually to create affordable and life-cycle housing. Participation by Saint Paul should be an easy action being that it could simply be done by restating recently established goals already adopted by the City Council. Realistically, this fund was established for the benefit of the suburbs as they move towards providing housing opportunities in their communities, but we should take this opportunity to become eligible for this fund for future considerations. As per your request for a definition of Life-Cycle Housing, the Metropolitan Council defines this as a variety of housing types and cost that meets people's changing needs and preferences as incomes, lives and circumstances change. Such housing can be best demonstrated through three examples: 1) for people when they retire and whether or not they are active or inactive seniors; 2) for people just stating out (i.e. graduation, marriage) and are seeking to remain living in the community in which they grew up; or 3) for people dealing with changed circumstances in their lives (i.e. divorce, death of a spouse). Finally, as to your question regarding the affect of participation on potential funding for polluted site cleanup. As I explained earlier, participation makes Saint Paul eligible to apply for grants from a pool of $6.5 million in funding for the metropolitan area intended for the clean up of polluted land. Furthermore, in order to be eligible to apply for similar funding from the Department of Trade and Economic Development, we must elect to participate in this program. This statewide funding is currently set $7.8 million for the current two year period. In short, if Saint Paul elects to participate, we potentially stand to gain millions through state and local grants but, if we don't participate, we lose out on financial assistance necessary to clean up the polluted land within our borders. As I mentioned earlier, I feel strongly that participating in the Metropolitan Livable Communities Act will provide tremendous benefit for Saint Paul and these benefits can begin to appear as early as mid-1996 as the grants from this program begin to be distributed. City staff have been actively working with the Met Council on the implementation of this program and the development of guidelines. Katy Lindblad and Marie Franchett have done an outstanding job of representing the City's interests during this process and are available if you need more detailed information. If you should have any additional questions or comments, please do not hesitate to call. cc: City Councilmembers FUNDING SOURCES FOR SITE ASSESSMENT, CLEANUP AND . REDEVELOPMENT OF CONTAMINATED SITES IN ST. PAUL FUNDING SOURCE AMOUNT MATCH REG�UIRED RESTRICTIONS/REQUIREMENTS APPLICATION DATES Metropolitan Livable GRANTS None. Must have a Minnesota Pollution Control Agency (MPCA) May 15, 1996 Communities Act (MLCA) $6.5M metro area 1996 approved Response Action Plan (RAP) (cleanup plan). November 15, 1996 Tax Base Revitalization $6.5M to 7M for future yrs. Competitive application process. 2 cycles each year as Account (Cleanup Funds) MET Council must approve Must participate in the MLCA Local Housing Incentives Prog. MET Council approves tax levy each year. tax levy. Department of Trade and GRANTS 50°,6 Private/local Must have an MPCA approved RAP. November 15, 1995 Economic Development $3.9M Statewide 1996 (12% local/non-TI� Competitive application process. May 15, 1996 Contamination Cieanup $3.9M Statewide 1997 (MLCA may be 48% Value of site before cleanup must be less than 50% of November 15, 1996 Grant Program Legislature appropriates of the match) cleanup cost, or value of site must be less than or equal to May 15, 1997 funding each biennium. the cleanup cost and the cleanup costs equai or exceed $3.00 per sq.ft. Must participate in the MLCA Locai Housing Incentives Rrog. Economic Development GRANT 1-4 EDI Grant to Loans Funds to be used per EDI Grant Application and contract. EDI contract not yet Initiative (EDI) Grant $1,000,000 EDI grant activities must be EDI applica#ion included acquisition, environmental finalized. linked to EDI loans. assessement and cleanup, seed capital lending, and workforce development. EDI Section 108 Loans LOANS Loans must be guaranteed EDI loans will have to have an "Acceptable" risk level. Ongoing $20,000,000 available. with City's CDBG funding Tax Increment Financing GRANTS OR LOANS 7.5% non-TIF/local funds Must qualify as redevelopment project. Ongoing Funds available on a required to avoid Hazardous Substance subdistricts must have an MPCA project specific basis. HACA/LGA penalty. approved RAP. STAR GRANTS OR LOANS 5096 non-City Must be neighborhood based proJect. January 1996 Funds awarded on a Competitive application process. project specific basis. State Tax Credits $3,000,000 over next few $5,000 per job created PED will develop local criteria for credits and submit to the Ongoing over term of Empowerment Zone years. State. Businesses must apply to the State for credits. zone or when funds are maximized. � � � k•\sh�rFCi\mcf�n�lltahl�. 10\9\95 !"' '�at '��X t. 'F''`- :YS"�b �.��''`1.3� � `�s�� ;, - � .l��:�l.;�_ __ '` "The new law represents common ground among the many public officials � � . � ' ,� k : • � , and others involved in this discussion," said Johnson. "It will accomplish a greater distribution of affordable � - ' X housing throughout the region, without imposing government policies that are too intrusive in local affairs. "; "The legislation is mindful that local units of government are best suited to make decisions about how their cities should grow and develop," he said. "But it also recognizes it will take partnership . and shared responsibility among communities to continue our economic successes as a region." Facing increasing demands and limited resources, metro area cities and Johnson says the new law is particu lariy appealing because it emphasizes towns may find a new regional program too good to pass up. The Metro- negotiation and cooperation between politan Communities Act establishes a fund to invest in the overall health che Council and the region's communi- ties, and relies on incentives to achieve and vitality of the Twin Cities region, and steers those dollars to local regional goals - as opposed to state and economic revitalization and affordable housing initiatives. It is the regional mandates chat impose penal- ties and hardships on communities. Legislature's answer, with bipartisan and wide-ranging local support, to "The livable communities legislation one of the most hotly-debated issues of the decade - affordable housing. represents a reasonable, realistic approach," said Johnson. "It is a credit to this community that it has pulled together to hold fast to our bragging rights as one of the most livable areas in Incenti�-es in the legislation encour- "Finally, it offers incentives that the country." age communities throughout the reg encourage communities to generate The Metropolitan to address several key issues, including a local dollars to expand housing L�vable �ommunities shortage of affordable housing in the opportunities within their own neigh- Fund se��en-county metro area, the need to borhoods for low- and moderate-income rede��elop declining neighborhoods, families, families just starting out, single Cleaning up polluted sites• The and an abundance of polluted land that people and the elderly. And, it estab- TaxBaseRevitalizationAccount thwarts economic opportunity. lishes a regional fund to assist commu- The new law creates an account for "The legislation responds to the nities that need help in their efforts to grants to cities, towns and counties for biggest challenge facing the Twin Cities pro�ide housing at an affordable cost." the clean up of polluted land in the region and contributes to the economic To pay for the program, the Legisla- metro area. Some of the money would well-being of the central cities and ture created the Metropolitan Livable come from dollars generated by the surrounding suburbs," said Metropoli- Communities Fund, made up of three Council to help local governments buy tan Council Chair Curt Johnson. "It separate accounts that the Metropolitan rights-of-way needed to build roads. But pro�ides much-needed dollars to clean Council will administer. Participation is most of the money in this account up polluted land in the metro area, optional. Cities and towns that choose comes from a portion of the fiscal including oid industrial sites, so more to participate in the housing program disparities pool. Dollars available to land is available for economic develop- ma}' receiee grants and loans from any communities in 1996 total about $6.5 ment and job growth. of the three accounts. Communities million. This amount is in addition to °Also, it provides dollars for revital- that choose not to participate in the clean up funds available to cities ization efforts, and encourages commu- housing program may not receive funds through the Department of Trade and nities to be creati�•e about development from any of the three accounts, nor may Economic Development. and redevelopment initiati��es. they receive state grants to help clean up polluted sites. ..'I^:'�ESGTQ CITIES � SEPTEMff_R i�'35 ��',�zt-�t=:�s��,�r^._+v—.,t�c� , .. g M,'hn�svfi�, G fi'�s l,Cc��i�Z /9 95 ��- A-,�.. � .:. : .. • �.a�a1'.lrr.u.-.v.. �:�'u��sL—'_—:��+ra.r...::aw'�c�fa�..:.:rS:a�.ti...:....-�::...i � r +� �x` a^ �` « ' e-n �� ,�r, � �` . K i � � �4. ;w . �. p ,� ,'� "! p �'! , .S`s'. S. r G - p �';.'? � � t ; 6 M � 1 't F ' � I�.'� .. . � T Jk,AS�. [ '' i,.. - � � � �� ..__.._. . � �:�.. �. �<<r� �� i J`eit� ,-/'A'. �a6. �. YGS.A � '�• .'�:a �� c� �� "' �- t� '? I, �' '� '��' �"""$�"�"`' Makin communities livable The Council, or spending their affordable - �*� •'� g '$:. i , �� "� '�� " Livable Communities Demonstra- and life-cycle housing opportunities tionAccount amount to meet their goals, must - A second ro am in the new law distribute this amount to their city or p � count housin authorit or to the p_ makes loans and grants available to Y S Y cities, towns and counties that initiate regional housing fund. de��elopment and redevelopment efforts The second source of funding, the that make their communities more local housing incentives account, is a "livable." Projects eligible for funding, regional fund to help communities that for example, must foster more compact have not met their negotiated housing development, greater housing diversity, goals, but are actively working to and development that is located near provide affordable and life-cycle - transit and other e�cisting services. The housing opportunities to residents. goal is to encourage higher density Dollars in this account come from a development, and discourage urban number of sources, which will generate I j ' ! sprawl and the high costs that accom- about $1 million a year initially and at pany development that is more spread least $1.5 million a year beginning in _ out. To pay for these "demonstration" 1998. Communities must decide by Nov. projects, the new law authorizes the 15 of each year whether they are going - S Council to le�y half of the taxes and to participate. receive some of the annual payments Strengtheningcommunities• The ' that have been levied b, and aid to, � i � , � s Y P Urban Homestead Pro am t he Metro olita n Mos 9 uito C ontro 1 S'�' P r m The new law also creates a ro a �t District. Dollars available to communi- P g c�' � ties through this account will total about Ihat gives income tax breaks to people who move into homes in certain �"' �, o ., $4.1 million per year. declining neighborhoods in the metro A e '. K_ O e Toward more affordable hous- area. By September 1995, the Council £� ` � ing: The Local Housing Incen- must designate one or more "urban 5, o es o.� `� 5 revitalization and stabilization zones." � tives Account � The housing portion of the program Anyone who buys and occupies a home d'`� e�o� • �- �-_ offers grants and provides other within a designated area would recei��e � , , 1�, � an income tax exemption for up to fi�-e ►� � �� S�` . financial incentives for metro-area cities ears, rovided the do not move out of � �•�� r a ` � e and towns to expand affordable and y p Y �= the home or sell the home. The law 2� o- � :.� life-cycle housing opportunities. The .�� ' ;� ! ' ��3. : esta b lis hes a maacimum exemption and �/ - program is voluntary and establishes � e � e: £� --• two separate sources of funding. One subjects the exemption to certain p,� source of funding is the "affordable and �ncome limits. � k life-cycle housing opportunities amount," calculated according to a The Metropolitan Council coordi- formula prescribed in the law. These nates regional planning and guides 5 � �'� �� . are locally-generated dollars that cities development in the seven-county metro ' b ` epf '; area. The Council also operates - and towns can apply toward affordable e ��. ,� and life-cycle housing within their regionalservicesincludingwastewater ' d j� p� �- " coinmunities. Beginning in 1998, collection and treatment, transit, and 1 c#�eC�},e�c , nc�i- Metro HRA - an affordable housing _ � � .� � however, participating communities ' �� ' � = that are not meeting housing goals service that provides assistance to low- �� :, income families in the region. � 5 100- ,: negotiated �e�ith the Metropolitan mes. '�ui ` �: e : i cos �; r ►�ce ��: o n " om = �� - � r- � g . � ' i rcas on and'�� : : � �� e! men�� '` � �• - � �Y'a `� �Gnst ,.t ,7`�� j -.4 .�'M'� �''% ,�s� r T Z' t :3� ., � s r c. ,� . � �. � r,2�+r"+�" �..�:u � , :]Fc �� mT ....vfa. Ww..l ;.�. _..e 10 �..-== a': .. ,,.�..._: i�^.1'v��'FSC:TA ClTfES 1 SEFTFt 11?S