03-14-1990 Council Agenda - Laserfiche WebLink

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Off ice of : JOEL R. HANSON, Administrator 515 Little Canada Road Little Canada, MN 55117 612-484-2177 FAX: 612-484-4538 CITY OF LITTLE CANADA RAMSEY COUNTY, MINNESOTA MEMORANDUM TO: Mayor Fahey and Members of the City Council FROM: Joel Hanson, City Administrator DATE: March 9, 1990 RE: Senior Housing Project MAYOR Michael Fahey . COUNCIL Beverly Scalze Bill Blesener Rick Coflova Jim LaValle Attached for your review is Steve Grittman's report regarding the above - referenced project. The Planning Commission at their meeting of March 8, 1990 stated that they felt the site was appropriate for senior citizen housing. I have also contacted Ramsey County and have learned that community development block grant funds are not an option for funding in 1990. Lastly, I have forwarded Mr. Brachman the relevant statute regarding income limitations for rental property relative tax increment financing housing districts. The first issue to be decided is whether or not you feel the project should proceed based on the information presented to -date. If the concensus is to proceed, the following issues will also need to be considered in the decision making process. * The length of time that the project will be committed to elderly housing. Based on a recent conversation with Mr. Brachman, it appears that his mortgage lender would allow a restriction for a 20 -year period assuming the tax increment financing ties in for that same period of time. I have also discussed this with Mary Ippel of Briggs and Morgan, and she informed me that a covenant could be placed in the developer's agreement running with the property for a 25 -year period of time. Obviously, the covenant could be broken should the developer default in his mortgage payments. She also informed me that lenders would probably not want to be bound by this same commitment thereby meaning if the developer defaulted, there would be no guarantee that the housing would be elderly in nature. Pan T3