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Mayor Hanson and Members of the City Council <br />July 24, 1991 <br />Page 2 <br />Good references on developer. <br />The recommendation of the Committee is also subject to the <br />execution of a developer's agreement with Presbyterian <br />Homes which will set forth a reasonable level of City <br />assistance, reimbursement of costs incurred to -date in the <br />evaluation process, compliance with conditions of the <br />Community Development Block Grant Program, no reduction in <br />City fees chargeable to the project, and other factors as <br />deemed necessary by the City. It should be further <br />understood that the Committee feels that if we are not able <br />to reach an appropriate agreement with Presbyterian Homes, <br />the City should then pursue an agreement with Stuart <br />Corporation as their proposal was also more than <br />acceptable. <br />The Committee does have some concerns with each project as <br />proposed. It is assumed that these issues are to be <br />resolved during the negotiation of the developer's <br />agreement. The Committee also has set some criteria that <br />they would like to see utilized in the negotiation of the <br />developer's agreement: <br />- Establish acceptable target rent range with the <br />assistance of Ramsey County. Work with the <br />developer to achieve the target rent range and <br />once achieved, any dollars still available should <br />be used to reduce City assistance and not lower <br />rents further. <br />- Ensure that there are realistic costs built into <br />the project budget. Address these by requiring <br />documentation of costs incurred and that <br />unexpended budget amounts be utilized to either <br />reduce rents to the target range or reduce City <br />assistance required. <br />- On amenities deemed questionable by the City, we <br />would require those to be withheld from the <br />project budget in the initial assistance <br />calculation. Should the developer wish to <br />construct these, other sources of funds such as <br />those raised by philanthropic sources could be <br />utilized to return these amenities to the project. <br />- Tax increment assistance should be on a "pay as <br />you go" basis and not have any negative impact on <br />other City finances. The City should also not pay <br />out 100% of assistance available in order that <br />Page 5 <br />