Laserfiche WebLink
MINUTES <br />CITY COUNCIL <br />NOVEMBER I, 200] <br />The City Administrator reviewed the components of the Maxfield study which <br />indicate the market for a quality, market-rate project of which approximately <br />20% would meet affordability standards. <br />"1'he City Administrator reviewed some diagrams prepared by E. G. Kud on <br />behalf of Gordie Howe showing a buffer of townhome development on the <br />eastern piece. <br />The City Administrator then reviewed in detail the financial analysis that was <br />prepared on a preliminary basis by Ehlers & Associates and expanded by the <br />City's Accountant and himself The Administrator reported that the analysis <br />contemplates the use of TIF on the commercial portion of the development <br />which is estimated to consist of 25,000 square feet to be leased utilizing a <br />master lease at $8.00 per square foot. For the senior citizen housing <br />component, rents are contemplated at $750 for one bedroom, $900 for one <br />bedroom with dens, and $1,050 for 2 bedroom units. It is also anticipated that <br />the project would be financed utilizing 30-year housing revenue bonds at <br />5.25% interest. "fownhomes developed on the eastern edge of the property <br />would be valued at approximately $275,000. <br />The Administrator reviewed the cash flow detail that contemplates a 5% <br />vacancy rate and shows the project cash flowing after three years. He noted <br />that a 5% vacancy rate for a senior project of this type is high. <br />Fahey asked if there was any difficulty with the City undertaking a project of <br />this type if an agreement cannot be reached with a developer to do the project. <br />The City Administrator indicated that there would be risks involved. However, <br />the City should be able to offer lower rents than could be offered by a <br />developer given there would be no developers fee built into the project. He <br />also recommended that if the City undertakes the project that the commercial <br />space is leased via a master lease. However, while the City has the advantage <br />of not having to charge a development fee, a developer would bring experience <br />to the project. The City Administrator suggested that the City could ask for <br />RFP's for a senior project as being discussed. He also suggested that if the <br />City undertakes the project, that focus groups are held to determine the type of <br />housing that seniors in the area are looking for. <br />Fahey stated that his preference would be to work with the property owner as <br />the developer on a project, or perhaps even ajoint venture with the City and <br />the developer. Fahey also felt that a senior project as is being discussed will <br />stimulate other redevelopment in the area. Fahey felt that the City should <br />acquire "fhe Venetian Inn property and should move forward with a senior <br />project. <br />s <br />