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1VIINUTES <br />CITY COUNCIL <br />APRTL 2, 1997 <br />Fahey pointed out it is in the City's best interests to have these buildings <br />improved. Ifthe City did nothing, perhaps the property would deteriorate. <br />Fahey stated that he would be willing to look at the tenant mix <br />information. <br />Scalze pointed out the datatl~at Dominium will provide will be based on <br />the tenant mix of the property when it was run down. The Council will <br />have to decide whether this is Yhe ceiling for tax credits. Scalze felt if the <br />tenant mix was 60% low/moderate income when the building was run <br />down, peifiaps the leve] for tax credits should be 40% since the property <br />has been renovated. <br />Brachman pointed out that a 40% level for tax credits will do nothing to <br />further improve the properry. Dominium would like to make more <br />improvements at The Provinces. <br />Pedersen pointed out that witl~out additional tax credits, additional <br />improvements will not be made. <br />Scalze felt the addition of a sprinkler system to the buildings will not bring <br />in a higher income level tenant. <br />Brachman felt increasing rents will improve the income level oftenants. <br />Bracivnan indicated that Dominiui~~ is i~ot in the business of creating <br />slums. There were some problems at The Provinces when they first <br />purchased the property. However, currently there are no problems. <br />Brachman outlined Dominium's success in turi~ing around problem <br />complexes in other cities. <br />The City Admii~istrator pointed out that at 85% low/mod designation, <br />there would be 18 units avlilable at The Provinces for tenants making <br />more than the median income leveL If those 18 units were rented, the <br />Administrator asked whlt would happen to the 19'~' prospective tenant <br />who comes in the door and who makes more than median income. <br />Brachman replied that Dominium would rent a unit to that person. <br />The Administrator asked if this meant that Dominium would let the <br />percentage of units availlble for tax credits float. <br />Ippel suggested that Dominium would sell tax credits at the 40% level and <br />the difference between 40% and the maximum the City would approve <br />would float. <br />