2024 09 17 CC Work Session MinutesCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the City Council Work Session
Tuesday, September 17, 2024
Pursuant to due call and notice thereof, a work session of the Mendota Heights City Council was
held at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota,
CALL TO ORDER
Mayor Levine called the work session to order at 5:01 p.m. Councihnembers Lorberbaum,
Mazzitello, and Paper were also present. Councilmember Miller was absent.
Others present included City Administrator Cheryl Jacobson, Public Works Director Ryan Ruzek,
Finance Director Kristen Schabacker, Park and Recreation/Assistant Public Works Director
Meredith Lawrence, Assistant City Engineer Lucas Ritchie (arrived 6:10 pm), Community
Development Manager Sarah Madden, Police Chief Kelly McCarthy, and City Clerk Nancy Bauer.
LOCAL AFFORDABLE HOUSING AID (LAHA) WITH DAKOTA COUNTY COMMUNITY
DEVELOPMENT AGENCY (CDA)
Tony Schertler, Executive Director and Lisa Alfson, Director of Community and Economic
Development with Dakota County Community Development Agency (CDA) presented
information on the Local Affordable Housing Aid (LAHA) program.
T. Schertler explained that the Minnesota Legislature in May 2023 passed a housing bill for new
funding for various housing programs. State funds were appropriated for programs and a metro -
wide sales tax for housing needs was established, including a portion of this tax as local housing
aid for metropolitan cities. The new law established a 0.25% metropolitan regional sales tax.
Schertler explained that the CDA does not receive a direct LAHA allocation, but Dakota County
will. He added that the city is expected to receive $43,876.81 in 2024. The MN Department of
Revenue will distribute the funds to Mendota Heights in two allocations; one already received on
July 10, and one expected on December 26. The funds come with annual reporting requirements
and reporting will start December 1, 2025. The funds received must be spent within three years
on a qualifying project or returned to Minnesota Housing. The program's income limits for
homeownership are up to 115% AMI (area median income). The income limits for renting are up
to 80% of AMI.
Lisa Alfson shared that
the CDA had been meeting with cities
to discuss the need
for affordable
housing and how the LAHA funds could be used. Alfson discussed
the eligible uses of the funds
including construction,
acquisition, rehabilitation, demolition,
removal of existing
structures for
September 17, 2024, Mendota Heights City Council Work Session Minutes Page -1
homeowners or rental assistance; financing for home ownership or rental housing; and emergency
rental assistance and financial support to nonprofit affordable housing providers.
It was shared that the city will need to decide how to use the funds. fson discussed a potential
partnership between the city and CDA where the CDA could administer three potential programs
on the city's behalf: 1) an enhanced single-family home improvement loan program, 2) radon
mitigation grant program, or 3) a preservation and new construction gap financing program.
The CDA's proposed role, and responsibilities would be to: administer the programs; complete
state reporting on behalf of the City's LAHA funded and CDA programs; and provide quarterly
reports and updates to the city partners.
Alfson explained that to move forward, the CDA is seeking approval from the CDA board to hire
a full-time housing improvement specialist to deploy LAHA funds. A letter will be sent to cities
outlining a formal request to partner on LAHA funds. To meet implementation deadlines, cities
will need to decide by the end of November. A Joint Powers Agreement would be put in place to
carry out the programs.
Mayor Levine said she would be interested in seeing the funds used for upgrading the tot lot at the
CDA's workforce housing development and to address multi -generational housing. Tony Schertler
said that multi -generational housing improvements would be a good idea for a pilot project, if a
developer could be found for that type of project, and if the family qualified for the funds.
Councilmember Mazzitello stated that he agrees with multi -generational housing.
City Administrator Jacobson asked if Mendota Heights' funds would be kept in its own fund or
put in a pool with other cities. Tony Schertler responded that the assumption is that the dollars
allocated to Mendota Heights stays in Mendota Heights. The CDA would do the accounting of the
funds.
Councilmember Lorberbaum said she liked all three ideas that were presented to use the LAHA
funds.
Councilmember Paper said he liked the idea of the CDA administrating the LAHA funds.
Mayor Levine asked if council members were supportive of partnering with the CDA to implement
the LAHA funds.
Councilmembers confirmed their support for collaboration with the Dakota County CDA with
funds directed towards an enhanced single-family home improvement loan program and radon
mitigation grant program.
POLICE DEPARTMENT AND CITY HALL BUILDING OVERVIEW
Police Chief McCarthy asked the Mayor and council members to hold a work session in November
to discuss their vision for the police and city hall campus. A clearer vision is needed for the future
building project.
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Councilmember Mazzitello confirmed that what was being asked of the Council was to define their
parameters for a project scope.
The value of the current building was discussed. Mayor Levine said she would like to move
forward with plans to submit a request for State bonding dollars again. A budget amount needs to
be figured out.
Community engagement and public involvement were discussed for a new campus. Bonding and
financing for the police/city hall campus were also discussed.
City Administrator Jacobson stated that the November work session is scheduled for November
15.
Councilmember Lorberbaum said the project was overdue and needed to be done.
ADJOURNMENT
A motion to adjourn the meeting was made by Councilmember Mazzitello and seconded by
Councilmember Paper. The meeting adjourned at 6:32 p.m.
��ll11 rlitce �.J�v
Stephar e B. Levine, Mayor
ATTEST:
C—
a cy B uer, ity Clerk
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