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MINUTES <br />CITY COUNCIL <br />APRIL 2, 1997 <br />sprinklered. Sprinklering would include all common areas, laundry areas, <br />and a sprinkler head above each apartment door. Dominium is also <br />proposing more elaborate landscaping for the fi•ont entry area. Brachman <br />pointed out that this is an opportunity for the City to cause significant life- <br />safety improvements at an aplrtment complex. <br />Brachman reported that Dominium made no intentional effort to mislead <br />the City or misrepresent their intentions. It was unfortunate the way some <br />of the letters went out to residents. <br />Fahey asked what the percentage of residents was in February of 1996 that <br />met low to moderate income guidelines. Brachman estimated that <br />percentage at 65% to 70%. Fal~ey asked the current percentage. <br />Brachman estimated the percent at the February of 1996 level or a little <br />higher. <br />Pahey asked how many residents left The Provinces since the first letter <br />went out. Brachman replied that unf'ortunately the letter resulted in the <br />loss of some tenants. However, he was not sure how many. Once the <br />letter was sent, Dominium received some phone calls from tenants, and <br />they attempted to set the record straight. Brachman i•eported that most <br />tenants at The Provinces are on month-to-month leases. Dominium would <br />like to get most tenants on annual leases. <br />Scalze asked if Dominiwn was losing tenants because the word got out <br />that tenants must meet low to moderate income levels. Brachman replied <br />that they are no longer losing tenants since the first letter went out because <br />they have set the record straight. Tenants have been informed that no one <br />has to move and Dominium's intent is not to reposition the property. <br />Fahey asked for an explanation of how tax credits work, asking the <br />difference between 40%, 50%, 60%, etc. levels. <br />Mary Ippel, Briggs and Morgan, indicated that regardless of the tax credit <br />issue, tax-exempt bonds were used to financing the purchase of The <br />Provinces. In utilizing tax-exempt bonds, there are two opCions. Either <br />the property must desi~nate at least 20% of units to tenants havin~ <br />incomes which do not exceed 50% of inedian income, or at least 40% of <br />units must be designlted for tenants whose income does not exceed 60% <br />of inedian income. A Yypical residential rental property is designated at <br />40/60. Ippel also pointed out that median family income for Ramsey <br />County would be used for The Provinces. Ippel reported that Dominium <br />chose the 40/60 split. In addition to this desi~nation, tax credits can be <br />requested. There is the option of going up to 100% affordable housing <br />under the tax credit scenario. The same income restrictions apply with tax <br />3 <br />