Wyoming council backs local support for two affordable-housing projects, approves housing trust loan

The City of Wyoming on June 17 voted to provide preliminary local support for two affordable-housing proposals, endorsing tax-increment financing as part of developers’ applications to the Minnesota Housing Finance Agency and approving a $200,000 low‑interest loan via the local housing trust process.

Consultant Michaela Hewitt of Baker Tilly briefed the council on how tax-increment financing (TIF) would work for the two projects proposed on the Fairview property: a roughly 60‑unit senior housing building and a 72‑unit workforce housing development. Hewitt said TIF is a ‘‘gap‑closing’’ tool that captures new tax revenue generated by a project and redirects that increment to finance eligible pre‑development costs. She described pay‑as‑you‑go financing and the statutory ‘‘but‑for’’ test used to justify TIF districts.

Hewitt presented preliminary estimates showing the senior project would seek approximately $317,000 in TIF assistance (pay‑as‑you‑go principal, repaid with interest over the district term), with an estimated first‑year increment of about $30,468. The workforce project’s preliminary assistance estimate was about $356,000 with a projected first‑year increment near $34,254; both estimates assume a maximum 26‑year district term and a 6% reimbursement interest assumption. For program eligibility, Hewitt said unit income and rent limits would range roughly from 30% to 60% of area median income, and the senior project’s unit mix produces an average income test near 49% of AMI while the workforce project averages about 46.8% of AMI.

Developers said the applications are stronger than last year’s submissions. Jared Ackman, representing Redwood (the workforce proposal), said the team added new project partners, an architect, and sustainability features to improve scoring on the consolidated MHFA RFP. Jeff Feinfeld, with Duffy Development (the senior project), said the senior proposal relies on housing infrastructure bonds and other targeted funding sources.

Council members moved and approved the city resolutions supporting the TIF request and the housing trust application. The council approved resolution 250656 expressing support for TIF assistance for Reuter Walton Development’s project and resolution 250657 supporting a housing trust fund application that would include a $200,000 low‑interest loan recommended by the local EDA. Council also approved a separate financing resolution for the Duffy Development project. The motions were seconded and approved by council vote as listed in the meeting record.

Why it matters: the city’s resolutions are preliminary endorsements to accompany developers’ competitive applications to Minnesota Housing. The consolidated RFP applications are due July 10, and awards of tax credits are expected in December; if projects receive awards, the city would later consider establishing TIF districts and pledged reimbursements in accord with statutory findings and the finalized project financing.

Votes at a glance - Resolution 250655 — variance approving an 80‑foot front setback for 269 Forest Boulevard (applicant David Boyum): approved by motion and voice vote. - Resolution 250656 — expression of support for TIF for Reuter Walton affordable housing project: approved. - Resolution 250657 — support for a housing trust fund application and recommendation of a $200,000 low‑interest loan to Reuter Walton: approved. - Duffy Development financing resolution — support for financing for an affordable housing project by Duffy Development Company Inc.: approved.

Next steps: developers will finalize MHFA consolidated RFP applications by the July 10 deadline; if projects receive tax-credit awards and other funding, the city will return to council later to consider formal TIF plan adoption and related agreements.