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MINUTES REGULAR CITY COUNCIL MEETING/PUBLIC HEARING FEBRUARY 27, 1985 PAGE 2 Mayor Eggert then continued the hearing for a short time to allow for appointment of a Councilmember to fill the vacancy created by the resignation of Rice' Chestovich and listed the applicants as follows: Jerry Wallin, 1859 North Snelling, Carolyn Nestingen, 1777 Lindig, William Smith, 1837 Prior, and Phil Chenoweth, 1426 West Larpenteur. Councilmember Hard moved, seconded by Councilmember Ciernia, that Phil Chenoweth be appointed to fill the vacancy. Motion carried unanimously. Mayor Eggert then administered the Oath of Office. The Public Hearing was resumed at 7:37 P.M. Fiscal Consultant Apfelbacher presented an overview of the proposed project, explained the estimated costs and the funds to be created by Tax Increment Financing when projected over a 13 year period. Jack Klepp, one of the developers of the University Retirees Condominiums, stressed the importance of the 13 year term to the project. He also explained that they have 115 reservations for the 100 units and have 53 units sold as of this date. Construction will begin in April or May, 1985 with completion scheduled between March and June, 1986. Mr. Klepp felt that the bond issue would be paid off before the bond term expires. PHIL CHENOWETH 1426 WEST LARPENTEUR APPOINTED TO COUNCIL TO FILL VACANCY PUBLIC HEARING RESUMED Attorney Gasteazoro explained that the project has been classed "Housing District" as it best fit under that category since it is housing for occupancy by low and moderate income individuals. The developer will provide a certificate that a portion of the units will be sold to persons with income limits of $15,000 to $38,000. Attorney Ippel felt that it was a more direct approach to declare it a housing district since elderly retired usually have low to moderate incomes and it also allows for a 25 year bond issue if desired. Council discussed the length of term for the bond issue, possible assessment of some improvements, and the possibility of requiring the developer to pay a portion of the debt retirement. Clerk Administrator Barnes explained that the University of Minnesota Golf Club has indicated a willingness to pay assessments on extension of sewer and water to the Club, however, it must be approved by the University. Council reviewed the letter of credit and objected to the wording which excludes payment of any expenses incurred by City Staff. John Herman, Attorney for the Coffman project, assured that the requested changes would be made. Attorney Herman also explained the operation of the condominium association, and that upon sale of the units the association will assume all responsibilities relating to the development agreement. Attorney Ippel stated that the object at this meeting is to approve the creation of the district., the development agreement will be negotiated later. Councilmember Baldwin expressed concern over a 13 year bond term and the fact that the community would not receive any immediate benefits. Fiscal Consultant Apfelbacher explained that there will be some direct benefit immediately due to the fact that the land is going from tax exempt to taxable (approximately $11,000). He also suggested that if it is not necessary to sell the bonds immediately and sale could be delayed six months, it would reduce the issue approximately $50,000 plus interest. Councilmember Hard expressed concern regarding escape in case of fire, and was assured that each unit will have a balcony. Developer Frank Kubitschek stated the matter has been discussed with the Fire Chief and Fire Marshal and both seem satisfied with the plan and felt all balconies are accessible to the ladder truck.