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MINUTES <br />CITY COUNCIL <br />SEPTEMBER 23, 1992 <br />Wilson explained that TIF statutes provide for a <br />penalty in Local Government Aid and HACA credits as the <br />result of TIF projects. The development agreement will <br />include a provision requiring the developer to make up <br />any penalty in these aids that the City might realize <br />because of the project. These penalties will be <br />required to be paid up-front. <br />Blesener felt that providing the TIF assistance as <br />outlined posed no risk to the City. Blesener noted <br />that the biggest impact on taxing jurisdiction would be <br />to the school district, however, since this is a senior <br />housing project, there is no additional burden being <br />placed on the school district. <br />There was no one from the general public present <br />wishing to comment on this portion of the discussion. <br />Mary Ippel, Briggs and Morgan, appeared before the <br />Council to update them on the status of the Development <br />Agreement with Presbyterian Homes. Ippel explained the <br />terms that will be included in the Development <br />Agreement. These include TIF assistance in the amount <br />of $700,000 to be paid out over a 13 year period at an <br />interest rate of 9%. The Development Agreement will <br />also include some provisions necessary because of the <br />TIF and Community Development Block Grant which are <br />assisting the project. These deal with low and <br />moderate income requirements. One of these <br />requirements is that 51% of the units must be rented to <br />low and moderate income residents for a period of five <br />years and rents must be at HUD fair market rent levels. <br />Another stipulation in the development agreement will <br />be that any cost savings generated because Little <br />Canada issued the revenue bonds on behalf of both <br />Little Canada and Bloomington must accrue to the Little <br />Canada project. The development agreement will also <br />provide that any remaining bond proceeds after the <br />projects are completed qo toward reducing rents, <br />fund-raising dollars go toward rent reductions, and <br />that the developer pay to the City at the time of <br />closing any LGA or HACA reductions that Little Canada <br />might realize. <br />Ippel recommended that the TIF resolution be approved <br />and include authorization for the Mayor and City <br />Administrator to sign the development agreement <br />containing the stipulations outlined subject to review <br />and approval of the City Attorney. <br />Collova asked why Bloomington would agree to let Little <br />Canada issue the revenue bonds. <br />Page 6 <br />