Wayzata approves affordable housing deal for 107-unit complex
The Wayzata City Council unanimously approved an affordable housing agreement on March 25 that will keep at least 60% of units at the Wayzata Woods apartment complex affordable for low-income residents for at least five years.
The council voted 5-0 to approve the agreement with FLT Wayzata Woods LLC for the 107-unit complex at 240 Central Avenue. The deal enables the property to receive a 4D tax classification from the Minnesota Housing Finance Agency, which lowers the property's tax burden to incentivize affordability. Under the agreement, at least 64 units must remain affordable for residents earning no more than 60% of the area median income, with rents capped at 30% of their income. The city's role is to sponsor the agreement without providing financial support, helping maintain the existing affordable housing stock.
Community Development Director Sharp explained that the 4D classification "lowers the tax burden on properties to essentially maintain or incentivize affordability of their units." One council member emphasized the importance of the deal, saying maintaining affordability in as many units as possible is critical for the city.
The meeting also featured two recognition items. The council honored Graciela Gonzalez for more than 20 years of volunteer service on four city boards and commissions. As she prepares to move to a warmer climate, council members praised her thoughtful deliberation and exemplary citizenship. Gonzalez encouraged other residents to get involved, saying community service is "a wonderful opportunity to make a difference in your nest."
Folkestone, a 221-unit senior living community, received the 2025 Sustainability Champion Award for its environmental initiatives. The community features a geothermal heating and cooling system and a resident-led Eco Team that has launched successful recycling programs. Their organics recycling program diverts approximately 7 tons of food waste annually from landfills and incinerators. Residents cited a desire to leave a better world for their children as motivation for the sustainability efforts.
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Votes (3)
Recognition of Graciela Gonzalez's Service and Resignation
Dissent: None
Moved by null · Seconded by null
The City Council publicly recognized Graciela Gonzalez for her extensive and dedicated volunteer service to Wayzata for over two decades. She served on the HPB, Planning Commission, Park and Trails Board, and Charter Commission. Council members lauded her thoughtful contributions, articulate communication, and role as a model citizen as she prepares to move to a warmer climate.
Presentation of 2025 City of Wayzata Sustainability Champion Award to Folkestone
Dissent: None
Moved by null · Seconded by null
Folkestone, a 221-apartment senior living community, was honored with the 2025 City of Wayzata Sustainability Champion Award. The award acknowledged their commitment to environmental stewardship, including a geothermal heating/cooling system, a proactive resident-led Eco Team, and successful initiatives such as a hard-to-recycle item collection program and an organics recycling program, which now diverts 7 tons of food waste annually.
Approval for Affordable Housing Agreement at Wayzata Woods
Dissent: None
Moved by Council Member [null] · Seconded by Council Member [null]
The City Council approved an affordable housing agreement with FLT Wayzata Woods LLC (Red Tail Acquisitions) for the Wayzata Woods apartment complex. This agreement is crucial for obtaining 4D tax classification status from the Minnesota Housing Finance Agency, which lowers the property's tax burden to incentivize affordability. The agreement mandates that at least 60% of the 107 units maintain affordability for residents earning no more than 60% of the Area Median Income, with rents not exceeding 30% of their income, for a minimum of five years, as recommended by the HRA. The city's role is a non-financial sponsorship to maintain existing affordable housing stock.
Notable Quotes (10)
Graciela spent more than 20 of them serving her community in many capacities and uh your influence and presence on our community has been felt over those two decades, Graciela, and on behalf of the city and the City Council, want to extend our gratitude for your service.
It's been a privilege and an honor to serve Wayzata over those many years. And um I would just like to encourage anybody who's present and listening to step up and apply for a board or commission or anything because it's a wonderful opportunity to make a difference in your nest. I mean, we live here and we should care about what happens. So, um just to encourage everybody to step up and you know, apply and serve.
I always thought that you had very thoughtful and careful deliberation and communicated your thoughts uh very articulately. And I really appreciate the amount of dedication and service uh you put into that as well as all the other uh commissions that uh Mayor Mullins just read and um you'll be missed and I I you are a shining example of being a great citizen and Wayzata is fortunate to have a number of people like that.
Each year committee selects a sustainability award recipient and this year we recognize Folkestone, a 221 apartment community committed to environmental stewardship. Uh built with geo geothermal system for heating and cooling, Folkestone expanded its efforts through a resident-led eco team. Working with the administration, they began with a recycling campaign educating residents on what could be recycled.
This building isn't a structure, it's our home. It's a home. Our mission at Presbyterian Homes is to honor God by enriching the lives and touching the hearts of older adults. With that said, the Folkestone community was designed and built to create a home that is comfortable, that's healthy, um and sustainable for people who live here and for generations to come.
I think the common answer is or the most common is that seniors have a desire to leave a better world for their children. There are other things, of course, because of a sense of uh of uh a purpose uh in their retirement and uh for many, an appreciation of nature and conservation. Uh whatever it is uh we hope that we can keep it up.
We're on pace to save annually 7 tons of food waste from the landfill avoiding methane and away from the incinerator avoiding toxic fumes. That is a conservative estimate of how much organics we are capturing.
The 4D tax classification status does is it lowers the tax burden on properties to essentially maintain or incentivize affordability of their units.
I think this is an important property in the city of Wayzata and to maintain affordability um in as many units as possible is really important and so I'm in full support of this.
It it lines up with our affordable housing policy and it lines up with policies at the HRA level even though there's no TIF money being used, just this tax break by maintaining this level of affordable housing stock is important to us and will maintain what is existing today, right?
Ordinances & Resolutions (9)
Revisions related to park dedication fees discussed in workshop.
Accepting a donation from the Wayzata Lions Club, approved on consent agenda.
Approved on consent agenda, allows Wayzata residents access to Plymouth's yard waste site.
Approved on consent agenda.
Approved on consent agenda.
Authorization for mayor and city manager to execute, approved on consent agenda.
Agreement with FLT Wayzata Woods LLC to maintain affordability for tax classification purposes.
State-administered status to lower tax burden on properties to incentivize affordability.
Document recorded against Wayzata Woods property as part of the affordable housing agreement.
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Other Topics from This Document
Recognition of Graciela Gonzalez's Service
2025 City of Wayzata Sustainability Champion Award to Folkestone
Affordable Housing Agreement at Wayzata Woods
Promotion of City of Plymouth Yard Waste Site Use
City Manager's Updates
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