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MINUTES <br />CITY COUNCIL <br />SEPTEMBER 9, 1992 <br />approximately half of the units will be rented to <br />Little Canada residents, 20% rented to individuals with <br />children living in Little Canada, 15% rented to people <br />who wish to return to Little Canada, and 15% rented to <br />others. <br />Lindh reported that Presbyterian Homes has a financing <br />rate commitment not to exceed 7 1/4% interest for the <br />next 20 years, assuming a construction start date of <br />October 15th. Lindh reported that there is the <br />possibility that interest rates could be lower than <br />that amount. Anticipated cost of the project is <br />$4,921,000. <br />Lindh reported that in addition to the individual <br />units, there will be common space consisting of lounge <br />area, chapel, dining room, beauty shop, barber shop, <br />card rooms, underground parking for 80 vehicles with a <br />car wash in the parking garage. <br />Lindh reported that Presbyterian Homes is making <br />efforts to raise funds in the community to be used <br />towards the project. For every $100,000 of funding <br />raised, rents can be reduced by $10 per month. <br />LaValle asked what was included in the rents. <br />Lindh replied that rents will include heat, management <br />service, cleaning of hallways. There will be <br />dishwashers and disposals in every units. Rent will <br />not include electricity or phone. Garage space will be <br />rented at $35 per month. Lindh reported that their <br />experience has been that 70 to 75% of residents will <br />use garage space. <br />LaValle reported that in calling the office of <br />Presbyterian Homes, he was informed that rents would <br />start at $415 per month, and possibly lower depending <br />on financing. LaValle stated that he did not think <br />$495 per month was moderate rent. LaValle felt these <br />rent levels would take a lot of Little Canada residents <br />out of the market. <br />Lindh stated that the only way to decrease rents would <br />be to raise additional equity. Lindh noted that this <br />is a non-profit project, and Presbyterian Homes feels <br />good about the rent levels. Lindh reported that <br />similar projects in neighboring cities have similar <br />rent structures. <br />Collova asked about age limitations. <br />Lindh replied that the units will be available to <br />Page 3 <br />