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MINUTES <br />CITY COUNCIL <br />NOVEMBER 7, 2001 <br />Fahey pointed out that the advantage to the City undertaking the project is that <br />it can give preferential treatment to Little Canada residents as well as parents <br />of Little Canada residents as long as there are no Federal funds involved. <br />Fahey felt that the ability to give Little Canada residents preferential treatment <br />supported the City's taking the risk. He felt that a lot of Little Canada seniors <br />would like to stay in the community. Scalze agreed that this would be the <br />prime reason for the City's involvement. Montour felt that this reason would <br />offset any criticism that the City would get because of its involvement in the <br />project. He felt that senior housing was a service that the City could provide to <br />its residents. Fahey also pointed out the City's ability to control costs and <br />rents. He indicated, however, if a developer submits a good proposal that will <br />benefit the citizens of Little Canada, the City should move on that proposal. <br />The City Administrator suggested that the Council hold a workshop to review <br />the objectives it wants to meet, including acceptable rent levels, amenities, etc. <br />He indicated that the City could then put out an RFP for the project. <br />Fahey asked if there was anything in the numbers generated by the City <br />Administrator that makes him less supportive of the project. The <br />Administrator pointed out that the loss makes him less supportive, however, he <br />felt there were things the City could to do reduce the loss. He noted that a $25 <br />per month increase in rents would generate $24,000 in additional revenue each <br />year. The Administrator felt the City could find ways to make the project <br />work He also noted that the City of White Bear Lake emphasized that tenants <br />of the senior housing have to be told on the front end that there will be <br />increases in rents each year. <br />Anderson asked Farnham if based on the numbers presented this evening if his <br />project was still feasible. Farnham replied that it was. <br />Scalze asked asked Farnham if there are fewer senior projects being developed <br />because of the events of September 11`x'. Farnham stated that with interest <br />rates as low as they are and the increasing demand for senior housing, the <br />events of September 11°i have not had an impact on senior housing projects. <br />He pointed out that there are currently 25 million seniors in the country, and <br />that number will increase to 75 million over the next 20 years. <br />Fahey pointed out that the City has interest on the parts of Farnham and <br />Sherman Rutzick in developing a project. The City can always go out with an <br />RFP. He felt the City should fully explore its options before taking on the <br />project as a City project. However, he felt that the research should be done on <br />a parallel path so as to keep the project on the fast track. <br />Fahey asked if the City purchases The Venetian Inn, if the building would be <br />demolished immediately after closing on the sale. The City Administrator felt <br />