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St. Anthony council directs staff to advance draft public finance policy emphasizing affordability and developer obligations
Summary
Councilmembers asked clarifying questions and confirmed they want staff to advance a draft Public Finance Policy that sets minimum job and affordability expectations (including a 26-year restrictive covenant and a Section Four goal of 20% affordable units at 50% AMI).
The St. Anthony City Council on June 9 directed staff to move forward with a draft Public Finance Policy that lays out statutory requirements and local expectations for developers requesting public assistance.
Ehlers Senior Municipal Advisor Stacie Kvilvang told the council the draft links to the Business Subsidy Policy and includes a floor requiring any assisted commercial project to create a minimum of one full-time-equivalent job paying at least 150% of the state minimum wage. She said the draft asks developers to include affordable units in Section Two (recommended at 60% of area median income) and identifies in Section Four a City goal of "20 percent affordable housing at 50 percent of the area's median income." Kvilvang also noted that "anyone requesting assistance must file a Declaration of Restrictive Covenants for 26 years," a standard mechanism she described as helping buyers understand affordability requirements.
Councilmembers sought clarification on enforcement and on whether owners must extend covenants if a property is sold; Kvilvang said owners are not required to extend covenants but that developers who accept assistance must file annual reports demonstrating compliance while covenants are in force. Councilmember Jan Jenson raised concerns about older residents in a 55-plus community facing faster rent increases than Social Security increases; Kvilvang said the policy does not create rent controls and cited case studies she described from St. Paul showing rent-control measures can reduce development.
The council also discussed differences between Housing TIF and Redevelopment TIF districts; Kvilvang and Assistant City Manager Ashley Morello said St. Anthony currently has two Redevelopment TIF districts (Ruby and Silver Lake Village) and no active Housing TIF districts. Kvilvang recommended holding a public hearing and forwarding the draft to the Department of Economic Development; Mayor Wendy Webster asked whether the council was comfortable moving forward and directed Assistant City Manager Ashley Morello to advance the draft as presented.
The council did not take a formal vote on the policy at the work session; the next steps are to schedule a public hearing and a formal council action at a future meeting.
