ITEM 5.3 CommonBond
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Planning City Planner Licht 28 May 2019
PRESENTER(s) REVIEWED BY: ITEM #:
City Planner Licht City Administrator/Finance Director Flaherty
5.3 – CommonBond
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
X Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of a non-binding resolution allowing CommonBond to submit application
to Minnesota Housing for a Federal Tax Credit program.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
CommonBond Communities is a non-profit affordable housing provider established in 1971 that operates
within 55 cities in Minnesota, Wisconsin, and Iowa. CommonBond has approached City staff regarding the
potential development of a multiple family building with 60 apartments at the southeast corner of Kaland
Avenue and 73rd Street within Kittredge Crossings. The property is guided for office uses and zoned PUD,
Planned Unit Development. The proposed development would require applications for a PUD
Development Stage Plan and preliminary/final plat. No zoning or subdivision approvals for the proposed
development are being requested at this time.
CommonBond would develop the property under the provisions of the Low-Income Housing Tax Credit
(LIHTC) program administered by Minnesota Housing, which helps create affordable apartment
developments with lower than market rents by offering tax incentives to the property owners (not the
tenant renting the unit). Properties may contain market rate units that are not financially assisted under a
tiered rent structure. For CommonBond to submit an application to Minnesota Housing, a resolution of
support for use of the LIHTC program must be adopted by the City. The has City previously adopted a
resolution of support for use of the LIHTC program within Kittredge Crossings at a site just south of
Kaleidoscope Charter School.
City staff has drafted a resolution of support for consideration by the City Council at their meeting on 28
May 2019. Representatives of CommonBond will be present to provide information regarding their
operations, LIHTC program, and the proposed development.
SUPPORTING DOCUMENTS ATTACHED:
CommonBond Presentation
Resolution
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution supporting a tax credit program application to Minnesota Housing by
CommonBond Communities.
BUDGET INFORMATION
FUNDING: BUDGETED:
NA
RESOLUTION NO.: 2019 - XX
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
A RESOLUTION OF SUPPORT FOR A TAX CREDIT APPLICATION TO
MINNESOTA HOUSING BY COMMONBOND COMMUNITIES.
WHEREAS, the City of Otsego is a municipal corporation and political
subdivision duly organized and existing under the Constitution and laws of the State of
Minnesota; and,
WHEREAS, the City Council of the City of Otsego has adopted the 2012 Otsego
Comprehensive Plan, as amended, that identifies housing needs within the community;
and,
WHEREAS, a goal of the Comprehensive Plan is to provide housing
opportunities for persons of all ages and income levels that allow them the ability to
maintain residence within Otsego throughout the various stages of their lives; and,
WHEREAS, CommonBond Communities is proposing to construct 60 multiple
family dwelling units of rental housing on Outlot G, Kittredge Crossings to be known as
Kittredge Landing; and,
WHEREAS, the proposed development requires application for a PUD
Development Stage Plan and preliminary/plat as provided for by the City Code; and,
WHEREAS, CommondBond Communities intends to submit a Low Income
Housing Tax Credit Application to the Minnesota Housing Finance Agency for the
project; and,
WHEREAS, the proposed development is consistent with the policy of the
Comprehensive Plan to provide opportunities for housing for low and moderate income
families and individuals that is not to be concentrated within a single project or area
meeting an identified housing need within the community; and,
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego
that Otsego that the City supports the proposed CommonBond project application for
Low Income Housing Tax Credits to the Minnesota Housing Finance Agency to address
housing needs within the community.
2
MOTION BY:
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this 28th day of May,
2019.
CITY OF OTSEGO
BY:______________________________
Jessica L. Stockamp, Mayor
ATTEST:______________________________
Tami Loff, City Clerk