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MINUTES <br />CITY COUNCIL <br />APRIL 2, 1997 <br />Brachman reported that a developer can sell the tax credits. The money <br />that would come trom the sale of these credits would be put back into the <br />project. <br />Urness repoited that Dominium bought The Provinces and have rehabbed <br />the buildin~. Some of the costs Dominium incurred were based on <br />expectations that they woiild ~et tax credits based on 100% affordable <br />housing. Urness suggested that if the erroneous letters to tenants had not <br />been sent, Dominium would have received tax credits based on 100% <br />affordable housing. Urness reported that Dominium has spent more <br />money on The Provinces than it would have if it knew it was limited to <br />40% tax credits. <br />T'l~e City Administrator poinCed out that the official statement for the tax- <br />exempt bond issue indicated a designation of 40% affordable housing at <br />The Provinces. <br />Brachman stated that Dominium recognizes that they will not get <br />approval for 100% affordable housing, but felt that a percentage higher <br />thai~ 40% would be approved so additional dollars can be generated to <br />inake additional improvements at The Provinces. <br />Fahey again stated that his comfort level would be enhanced to the extent <br />that he k~~ow what the teuant mix was at tl~e time bond application was <br />made. <br />Brachman indicated that they could compile this information. <br />Fahey indicated that he wants tlie tenant mix as of February of 1996. <br />Fahey felt that percentage would be a reasonable one on which to base tax <br />credits. From a policy standpoint, Fahey indicated that the City will not <br />approve a level of tax credits for The Provinces higher than 40% until it <br />has tliis information. Fahey pointed out that 50% of the housing in the <br />CiCy is multiple-family, and the City does not want to see all its multiple- <br />family housing limited to low/moderate income levels. Fahey felt this <br />would be detrimental to the City's ability to attract retail and commercial <br />businesses. <br />Brachman stated that Dominium will try and recreate this information for <br />the Councit. <br />Scalze indicated that her thoughts were that when improvements were <br />made at The Provinces, a higher income level tenant would be attracted. <br />Brachman pointed out that they are increasing rents aC the complex. <br />10 <br />