12-15-2021 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL DECEMBER 15, 2021 The City Administrator explained that the developer is planning to submit an application to Minnesota Housing for Housing Facility Revenue Bonds for a maximum amount of $9,319,750. He stated this is a key portion of financing an apartment project like this. Keis asked the City Administrator to review the traffic for this project. The City Administrator explained that one entrance into the site will be off of Bankers Drive. He stated that Bolton & Menk completed a traffic study of the project area at the request of City staff. The traffic study analyzed traffic counts and traffic flow with the proposed additional 120 units and does not meet the criteria to require dedicated turn lanes or a 4-way stop. Paul Keenan, Reuter Walton Development, explained that most of the comments heard at the Planning Commission meeting and neighborhood meeting were about the size of the project, amount of traffic and entrance and exit points. He stated they will phase the project and not build both structures at the same time. He explained that there is a lot of research available that shows multi -family housing does not lower property values of surrounding neighborhood. He noted they use a quality management company and will have on -site management. He stated they are willing to consider turn lanes on Twin Lake Boulevard, and had initially proposed to have three new access points, but both staff and neighbors felt that was too many so they will only add one new access and will also use Bankers Drive which is an existing street. Fischer asked what the oldest development Reuter Walton has in the Twin Cities. Mr. Keenan stated about 10 years old. Fischer asked how the upkeep has been. Mr. Keenan stated they set aside money to maintain the properties, and noted after about 10 years buildings will need some improvements and revamping. Fischer asked if a playground for kids would be built. Mr. Keenan stated they will install a play area between the buildings. McGraw stated that people are wondering about the rent amounts and asked if the residents have to pay the rent or are there government programs where the tenants are getting their rent. Mr. Keenan explained that the tenants will be responsible to pay the rent. Mr. Keenan stated they will be using the Section 42 Program and residents receive no additional public subsidies to help them with the rent. McGraw clarified that the financing they are asking for is to get the project off the ground. Mr. Keenan explained they are asking the State of Minnesota for bonding authority, and if they get it, that comes with low income housing tax credits, which they then sell to investors as an equity investment. McGraw asked if they get this financing, can they change to the Section 8 program later on. Mr. Keenan stated he has never seen that happen. McGraw asked how they know if people qualify for the rent. Mr. Keenan explained that HUD puts out household limits and the property managers do an extensive investigation of income and assets to make sure the potential tenant qualifies. McGraw asked how much income is needed to live there. Mr. Keenan stated their rule is the income must be at least 2 %2 times the monthly rent. He noted that a family of four can make up to $63,000 per year and live there. McGraw noted that someone like a new teacher could qualify to live here. Torkelson stated that one of the biggest concerns of the neighbors is the type of tenants that will be living there. He asked Mr. Keenan to explain why the Michaels Organization is a good 2