03-12-1997 Council Agenda - Laserfiche WebLink

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c + a = 74 Ceanack 515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel R. Hanson, City Administrator DATE: March 10, 1997 RE: Workshop to Discuss Provinces Tax Credit Issue MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morelan Bob Pedersen ADMINISTRATOR Joel R. Hanson I am recommending that we call for a workshop at 6:00 p.m. on March 26, 1997 to meet with representatives of Dominium (owners of the Provinces) to discuss the affordable housing mix they are proposing relative to Section 42 tax credits. Mary Ippel of Briggs & Morgan will also be involved in this discussion. As you recall, when we approved the issuance of tax exempt financing to facilitate their acquisition of this complex, it was represented to us that 40% of the units would be reserved for people making 60% of the median income. Recently, representatives of Dominium have indicated that they would like to see a higher percentage of affordable housing in order that they may take advantage of a large amount of tax credits. Therefore, the need for a workshop is necessitated. I have asked them to put together their rationale for a higher level designation of affordable housing. I have indicated to them that we are very concerned with this prospect in that we would like to see the complex maintained as a market rate building. They are also revising the letter to further clarify the impact that financing arrangements are having on existing tenants. Specifically, it will be indicating to residents that make more than the 60% of median income that they do not have to vacate the building and they are welcome to live there for as long as they would like. (I should have a copy of this revised letter by Monday evening.) JRH:kpv Page 35