Seconded by councilmember Doring.

All in favor say aye.

Aye.

Any opposed, say nay.

Seeing none, we are now uh in our our Rochester Economic Development Authority.

Uh and uh call to order.

We have no organizational business.

Uh our consent agenda has our minutes from May 19th.

Is there a motion to approve the consent agenda?

So moved.

Moved by council member Keene, seconded by council member Miller.

All in favor say aye.

Aye.

Any opposed, say nay.

Motion passes, passes.

We have no public hearings.

We have one uh report and recommendations, which is the development assistance agreements relating to the Civic Center North Apartment uh project and TIFF district number 82.

And um Mr.

Josh Johnson and Brett Sun V will take this.

Yeah, thank you, Council President, Mayor, Council members.

Um we've already had some discussion and some exposure to this item tonight, so I'll I'll keep my presentation tight.

Um one of the things I want to spotlight is that in 2022, and when we went out for an RFP, uh we were really looking to engage in a development partner.

Um and some of the high level criteria that we're looking for is one, we wanted to maximize the the use of the city owned land.

Uh it's currently exempt and it's it's being used to uh park cars along our riverfront.

So we wanted to prioritize density.

We also wanted to deliver meaningful riverfront improvements.

Um a lot of our riverfront corridor there is being used for service parking lots.

So we really wanted to provide greater access and um you know beautification to our riverfront.

Uh we also wanted to provide affordable housing.

Uh this project obviously does all of those uh uh objectives.

Um we've talked about the 341 units, we've talked about the 76 units in deeper uh affordability, so 50% and 30% AMI, which is which is deeper and requires uh a higher level of subsidy.

Um but some of the other items that I really want to highlight are the seamless integration of the affordable housing with the market rate.

I can't really think of any other projects that really combined those two items as seamlessly as this project does.

It also uh by wrapping the parking garage um, you know, provides a lot of benefit to that public realm to the downtown.

Uh it really hides um, you know, that that uh critical aspect of the project.

Um but when we talk about partnership, like when we're looking at these and we're and we're meeting with Sherman, we've been meeting with them once a week for several years now.

Uh we do look at it as a public-private partnership relationship.

Um they're investing 140 million on a uh less than two acre site in our downtown.

Um that represents about a 10 to one public-private ratio.

And we look at oh, we're providing in potential TIFF increment, and in our land uh uh our land assistance.

Um with TIFF, uh, of course, it's performance-based support.

So TIFF payments are only made through new tax uh revenue generated by the project itself.

So it's really they're generating the revenue, we're deferring receiving that taxes and providing it to them over a period of time.

Um with that, the developers also suing the market risk.

So they're bearing the uncertainty around future rent growth, construction costs, interest rate, long-term site performances.

Um, and you know, we're a party to that, but like I say, they're they're bearing most of the uh risk.

Uh, in terms of the public benefit it provides, of course, uh it's affordable housing.

Um, I I think Chris Osmondson used the term uh affordable principles earlier today, and I really like that term.

You know, what what benefits the affordable portion also benefits the market reportion, and that's access to transit, link rapid link rapid transit's gonna be right there.

Uh access to civic assets like the civic center, civic theater, art center, like those are all gonna benefit those entities by having you know more than 365 people living in that proximity.

Um the other impacts uh are or the other thing that I wanted to end on is but for the market rate component, we wouldn't be able to support the affordable uh housing gap.

Uh with the change in the classification rates for affordable housing, it they generate very, very little in TIFF increment.

So about eight and a half million dollars are being allocated from the market rate unit to the affordable unit.

Without that TIFF, they would be coming any other affordable housing developer, presumably would be coming back with like an eight and a half plus million dollar request, and we'd have to find another way to fill that gap.

GSIA is is been used, but if we use GSIA to plug that gap, then it leaves other projects that we've recently approved unfunded.

Um so that's where you really need to be creative and pair these types of market rate and affordable housing projects together.

And the benefit is we're getting affordable housing, but we're also getting 265 units of other housing for people to live in.

Um so with that really brief uh explanation.

Uh questions on this item.

Uh council member King.