Laserfiche WebLink
MINUTES <br />CITY COUNCIL <br />APRIL 10, 1996 <br />problem with sprinkling only one building, asking which <br />building would be sprinkled. Scalze pointed out Grand <br />Pre' did not request City funds to assist in the cost <br />of sprinkling their buildings. <br />Morelan felt that while technically the loan <br />origination fee is City money, the fee comes from the <br />rents residents pay for their units. Therefore, <br />Morelan felt what the City is doing is imposing a fee <br />on residents over and above what anyone else would pay. <br />As a result, Morelan favored putting the money back <br />into the project for the benefit of the residents. <br />Morelan suggested the money should not be used for <br />anything that does not directly benefit the residents <br />at The Provinces. <br />Pedersen pointed out that the residents are benefitting <br />since the project got a better interest rate due to <br />City involvement. The decreased interest rate results <br />in reduced rents for the residents. Pedersen did not <br />feel residents were penalized as a result of the City's <br />charging a loan origination fee, but rather benefitted <br />through better financing. <br />Morelan pointed out that the City did not have to <br />charge a loan origination fee, and was not earning the <br />fee. <br />Fahey stated that he was not sure residents benefitted <br />one way or the other. To say the residents benefitted, <br />is to assume the owners passed the savings onto <br />tenants. <br />Morelan pointed out the improved financing allows the <br />owners to make more improvements on the buildings. <br />LaValle noted that sprinkling the buildings does not <br />result in much of an insurance savings for the owners. <br />LaValle also commented it was his feeling the loan <br />oriqination fee the City realized should be used for <br />the benefit of all citizens of Little Canada, and not <br />put into a private property. <br />Morelan pointed out that a fire suppression system <br />would not increase the estimated market value of a <br />property. <br />Fahey stated that he supported the sprinkler system <br />concept, and did not see it as addinq any value for the <br />individual developer. While the sprinkler system did <br />not add significant value to the property, Fahey felt <br />8 <br />