07-09-1997 Council Agenda - Laserfiche WebLink

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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: July 3, 1997 RE: Garden Terrace Addition MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morelan Bob Pedersen ADMINISTRATOR Joel R Hanson Mr. Doug Mayo of Common Bond Communities (owner of Garden Terrace) has indicated they will be applying for Department of Housing and Urban Development (HUD) 202 funding to facilitate an addition of 36 units to Garden Terrace. (The building presently contains 41 units.) Mr. Mayo has indicated this is a very competitive process and there is no guarantee that they will receive approval. To help them with the application, they would like a letter of support from the City relative to this proposed addition. They will also need a letter indicating that the site can be properly zoned for this building (currently zoned PUD). I would recommend we send both letters to aid their application. The other issue that must be dealt with involves the relocation of an existing sanitary sewer line bordering on the northerly line of their existing property and the property they are purchasing from the Market Place Shopping Center. (see diagram attached) The Engineers have taken a quick look at this matter and have estimated the cost at approximately $31,000 to accomplish the relocation. Mr. Mayo has informed me that HUD will not allow them to expend funds on this component because work is taking place off the immediate project site. Another option would be to have Market Place Limited Liability Corporation pay the costs. They are selling the land at a very reasonable amount ($1.50 per square foot). Therefore, they are unwilling to pick up the cost of relocating the utility lines given the low sale price of the property. If they were to undertake the work and add that value to the price, that would leave less money for Common Bond to work with under their project which could impact project quality. Common Bond is not seeking any tax increment financing assistance for this project. They would like assistance with the sewer line relocation costs. Given the fact that this project will assist the Rice Street redevelopment tax increment financing district and that it will provide a much needed housing option for our senior residents, I would recommend we authorize the expenditure of funds to facilitate the relocation of the sewer line with the proceeds to come from Page 21