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MINUTES <br />City Council <br />February 28, 1990 <br />that there was no market for age-restricted housing. <br />Rents for those units were similar to what are being <br />proposed tonight. <br />Maxfield replied that he has not seen the research done <br />by the other developer, but he finds the results <br />outlined this evening to be surprising. <br />Brachman reported that if the project goes forward, <br />Maxfield's firm would be hired to do a market study. <br />However, in order for the project to go forward, Tax <br />Increment Financing assistance is needed. Without it, <br />the project is not feasible. <br />Brachman reported that what he is seeking this evening <br />is that City staff be authorized to put together <br />figures pertaining to the use of TIF for this project. <br />TIF is needed to bridge the gap between what the market <br />will pay and the cost of the project. However, the <br />general concept of the proposal will not be firmed up <br />until the marketing study is completed. That study <br />will determine the ratio of one bedrooms to two <br />bedrooms. Brachman also reported that it is proposed <br />that the building will not be sold, but that his firm <br />will retain and manage the project. <br />Blesener asked if the City provides TIF assistance, how <br />will the City be guaranteed that the people needing <br />subsidized housing are the ones receiving it. <br />Brachman replied that an alternative is using tax <br />exempt bond financing which require that a certain <br />percentage of units be set aside for the low income, <br />age restricted. Brachman also suggested that his firm <br />could enter into an agreement with the City to set <br />aside a certain number of units for low income, age <br />restricted. <br />Fahey asked if the developers were seeing both TIF and <br />tax exempt bonds. <br />Brachman replied that at this point TIF is being <br />pursued. <br />Blesener felt the proposal was too large, stating that <br />he would be more willing to support a 40 to 60 unit <br />complex. It was pointed out that Garden Terrace is a <br />40-unit building. Blesener stated that he did not <br />believe such a proposal was a proper use for TIF <br />assistance, since he believed that TIF should be used <br />Page 16 <br />