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MINUTES <br />City Council <br />February 28, 1990 <br />Increment Financing. Brachman estimated that $150,000 <br />per year in Tax Increment Financing assistance is <br />needed for an extended period of time, in order to <br />bring the cost of rents down to make them affordable <br />for senior citizens. Brachman proposed that the "pay <br />as you go" method of TIF would be used, therefore, <br />there would be no risk to the City. <br />Fahey pointed out that a few years ago the developers <br />of an apartment complex in the general vicinity did a <br />market study which indicated that there was no market <br />for market-rate apartment housing for seniors in the <br />area. Fahey asked what has changed to indicated that <br />there is now a market. <br />Scalze indicated that she has heard that there are <br />vacancies in senior apartment complexes in the City of <br />Roseville. <br />Brachman agreed there is currently no market for <br />market-rate senior housing, however, pointed out that <br />they are asking for TIF assistance in order to reduce <br />rents and provide affordable senior housing. Brachman <br />reported that the market study has not been done as <br />yet, however, Mr. Maxwell's firm feels that there is a <br />market for affordable senior housing. <br />Fahey asked about City control to ensure that once the <br />apartment complex is constructed it remains a senior <br />citizen complex. Fahey was concerned that the complex <br />would be built and if it could not be filled, the <br />developer would open the complex up to the general <br />market. <br />Brachman pointed out that he is requesting TIF <br />assistance for the next 12 to 14 years, and suggested <br />that covenants be put in place limiting the occupancy <br />to seniors to that amount of time. <br />Scalze indicated that there are some people in the City <br />that will not believe 12 to 14 years is long enough, <br />and that the building should be dedicated to seniors <br />for a much longer time period. <br />Brachman pointed out that assistance is needed in order <br />to drop the rents, and as long as that assistance can <br />be provided, his firm would be willing to enter into a <br />contract with the City setting the building aside for <br />seniors. Brachman also pointed out that the building <br />will be constructed with seniors in mind, and once a <br />Page 14 <br />