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HomeMy WebLinkAboutCity Council - 10/18/1988 - HRA HOUSING & REDEVELOPMENT AUTHORITY -APPROVED MINUTES TUESDAY, OCTOBER 18, 1988 7:40 PM CITY HALL COUNCIL CHAMBERS 7600 EXECUTIVE DRIVE HOUSING & REDEVELOPMENT Chair Gary Peterson, Richard Anderson, AUTHORITY MEMBERS: George Bentley, Jean Harris, and _ Patricia Pidcock HOUSING & REDEVELOPMENT City Manager Carl J. Jullie, Assistant AUTHORITY STAFF: to the City Manager Craig Dawson, Finance Director John Frane, City Attorney Roger Pauly, and Recording _ Secretary Deb Edlund � I . CALL MEETING TO ORDER The Chair called the meeting to order at 7:40 PM. II . RESOLUTION NO. HRA 88-01 APPROVING TAX INCREMENT FINANCING_ PLAN FOR ELIM HOMES, INC. (ELIM SHORES PROJECT Jullie reported that Elim Homes Incorporated was proposing a Senior Housing Development which would require Tax Increment Financing in order to reduce the rents to affordable prices . • Bill Meyers, President of Elim Homes Incorporated, presented the plan for the development of a 64-unit senior housing facility on Mitchell Lake with an estimated cost of $5, 400,000 . Elim domes Incorporated had committed $1,000,000 of equity to make the development feasible. Meyers said the Tax Increment Financing was necessary to assist Elim Homes Incorporated to provide affordable rents. He added that Elim Homes Incorporated had committed $50,000 per year to help subsidize rents for those residents who could not afford them. Meyers said Elim Homes Incorporated would like to start construction as soon as possible. Pidcock asked if this building would continue to pay any taxes after termination of the TIF district since Elim Homes Incorporated was a non-profit organization. Meyers replied that the plan was to pay taxes on the building. Jullie added this was not a tax-exempt organization and it would pay real estate taxes. Pidcock believed only 9 units of the 64 units had reasonable rates . Meyers said that dining rooms, transportation programs, and assistance with housekeeping would be provided. Meyers commented the facility would enable the residents to stay independent as their physical ability to care for their own unit became impaired. Pidcock asked if these extra services were included in the rent. Meyers replied that there ionising & Redevelopment 2 October 18, 1988 would be a minimal charge for the optional meal plan which was also partially subsidized in the rent program. Harris asked if special construction considerations were necessary to accommodate the elderly. Meyers replied the building was designed with senior citizens in mind. He added that special lighting, safety precautions, and special widths for the bathrooms were provided. Harris asked Meyers how many units would be subsidized by Elim's $50,000 contribution each year . Meyers replied that 13 units or 20% of the building would be subsidized and Elim Homes Incorporated was also committed to meet moderate rental levels for 80% of the units. Harris asked what provisions were made regarding the sale or transfer of the property. Jullie replied that two questions needed to be addressed: 1) what was the commitment for low- income housing after the 10-year tax increment financing program was completed; and 2) what was the City's equity position upon resale. Meyers commented the 10-year period was a statutory minimum and assured the City Council that continuing the subsidy program beyond the 10 years would not be a problem. Meyers stated that the City's equity question could be worked out between the attorneys. • Peterson noted the memo referred to elderly and low-income families. Peterson asked Meyers for clarification. Meyers replied the facility was for those 62 and older; however, four handicap units were provided. Meyers commented that a family could consist of a husband and wife. Pidcock commented the square footage of the units was small. Pidcock asked Meyers if additional storage facilities would be provided. Meyers replied that storage lockers were provided, underground garage space was available, and additional storage space could be rented. He added the square footage was more than adequate based on today's market. Pidcock asked Meyers if the Tax Increment Financing was not approved would Elim Homes Incorporated be able to build the facility. Meyers replied it would not be feasible and the financing would not be available without the Tax Increment Financing. Bentley commented this proposal was consistent with the City's policy to encourage creative means of attracting affordable senior housing into the community. He added the Metropolitan Council had requirements to provide senior housing based on population and this proposal was consistent with financial assistance provided in the past. Bentley believed the Tax Increment Financing Program was a good program. • Housing & Redevelopment 3 October 18, 1988 • Harris stated the development would help meet the identified need for additional senior housing which was defined by the South Hennepin Human Services Council and the City's Human Rights and Services Commission. MOTION• Bentley moved, seconded by Anderson to adopt Resolution No. HRA 88-01 approving the Tax Increment Financing Plan for Elim Homes, Inc. Motion carried unanimously. III . ADJOURNMENT MOTION• Bentley moved, seconded by Harris to adjourn at 7 :55 PM. Motion carried unanimously. • i