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MINUTES <br />CITY COUNCIL <br />APRIL 16,1997 <br />Morelan did not agree it was logical for pominium to assume the City <br />would inerease t1x credits given the City's experience with the Montreal <br />Courts apartment complex. Morelan felt that may be in the City's best <br />interests to limit the ~~umber of low income housing complexes. <br />Brachman indicated that problems at apartment complexes arise when <br />there is a poor manager. As long as prospective tenants are screened and <br />criminal bacl<ground checks are done, apartment complexes should be able <br />to rent to good tenants. It is the landiord which tolerates tenants breaking <br />the rules that causes }~roblems. <br />Morelan felt that The Provinces could support hi~her rents given the rehab <br />work which has been done at the complex. Morelan acknowledged that <br />Dominium would have to consider how high rents could be raised and still <br />attract tenants whicl~ would qualify for tax credits. <br />Fahey indicated that he was not comfortable incenting a change in tenant <br />mix. Fahey stated that he s1w nothing wrong with the City using its bond <br />authority to get an apartment complex renovated wl~ich would otherwise <br />become more blighted. Fahey stated that he would like to see The <br />Provinces sprinklered, but not 1t the 85% tax credit level. Fahey pointed <br />out that llominium will be a lon~ term owner of the complex, and the City <br />would expect that they will manage the complex properly. <br />Morelan felt the 65% tax a~edit level was too high. Morelan stated that he <br />would like to see the median income level of tenants at The Provinces <br />increased, and felt thlt loci<ing in tax credits at the 65% leve] would <br />ensure the mix will be even higher. <br />Scalze agreed, tind indicated that sl~e felt tax credits sliould remain at the <br />40% level. Sc1(ze stated that The Provinces had been a run-down <br />complex, Improvements have now been made which would support a <br />higher rent level. Scalze indicated that she is not interested in the situation <br />at The Provinces staying the same, but wants to see it become better. <br />Urness again poii~ted out th~t there is no incentive for pominium to let a <br />uuit siY vacant while waiting for a prospective tenant who meets low to <br />moderate-ii~come levels. The Ioss of rental income for that unit would <br />offset tax credit revenue. <br />Morelau felt this is why Dominium will mar]<et the complex to low to <br />moderate-income people to a degree. <br />Scalze again stated she would like to see rents raised at The Provinces and <br />Dominiwn try and recoup their rehab costs and developer fee throu~h <br />