11-26-85 Council Minutes - Laserfiche WebLink

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MINUTFS City Council Nov. 26, 1985 Rutzick Mr. Fahey opened the hearing on the industrial revenue bonds for IDB's Mr. Rutzick's apartment buildings. (Cont.) Mrs. Scalze asked if Mr. Rutzick has investigated the possibility of designating one of his apartment buildings for senior citizens. Mr. Rutzick stated that he understood that the Planner was going to get back to him on this. The Planner stated that the market research firm that he knows of that is working on this topic, has asked that he not give the name of the firm to Rutzick as he is doing the study for another developer. Fahey stated that the Council wants a feasibility study done with regard to designating one of the buildings for senior citizens. The Council wanted the Planner to work on this. Mr. Blesener indicated that clear direction was not given to the Planner at the last meeting. Fahey felt that the Council should authorize the Planner to work with Rutzick on this study. Fahey asked if the Council can make approval of the bonding contingent upon this study being done. Bond Counsel reported that the current resolution before the Council was preliminary approval. Before the bonds can be issued, the matter will come back to the Council for final approval. The Bond Counsel also commented that he would look at State Law with regarding to designa- tion of one or half of the buildings for senior citizens. Bond Counsel felt that the preliminary resolution was sufficient to authorize submission of the proposal to the Minnesota Housing Finance Agency. If the project goes forward as an elderly project, it will change the nature of the project and this will be clarified in the final resolution. Fahey asked if the Council could withhold the final approval until the feasibility study is completed. Bond Counsel stated that there was a timing problem in that everything has to be submitted by the end of the year. By that time the project must be designated for either low and moderate income or for the elderly. Mr. Rutzick pointed out that there is not that much time to do a feasibility study. Nardini asked what was considered low or moderate income. Bond Counsel replied that a formula is used and 80% of the medium income for the area is considered low income and 110% of the medium income is considered moderate income. Blesener pointed out that under the formula low income would be approximately $27,000 annually and moderate income would be $36,500 annually. Ms. Nardini pointed out that Mr. Rutzick mentioned a congregate dining Page -11-