08/24/1998 Council Packet - Laserfiche WebLink

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COUNCIL MINUTES July 8,1996 Council Member Kuether stated that Mr. Schmidt should have checked sewer and water user fees with the City of Lino Lakes to determine the current fees before finalizing his project. Mr. Schmidt stated that Senior Housing is not an easy project to rent. He stated that he was in a real bind and needs help from the City for one (1) year. Council Member Lyden asked about a memo he received. Mr. Schmidt indicated the memo is his recommendation to Council. Council Member Kuether stated the City has already put over $900,000 into the project. Now Mr. Schmidt is asking for more money from the citizens of Lino Lakes. She indicated the City may not be able to help because of regulations outlined in the City Charter. Mr. Hawkins stated that the SAC is less on apartments. If less usage can be shown, there could be a reduction in the flat fee. Mr. Schmidt stated that he received a $150.00 bill before the water was turned on. Mr. Hawkins stated that sewer and water rates are set up to be self - sufficient and not require tax payer support. An option is to increase the seniors rent. Mayor Landers noted that this is open mike. Council cannot take action, only receive input. Mr. Schumacher stated that he has been working with Mr. Schmidt on this issue for a number of weeks. The issue was discussed at a Council work session and Council was given the opportunity to think about the issue. He stated that he asked Mr. Schmidt to come before Council this evening to discuss his concerns. Mr. Schmidt stated that he is trying to get the loan closed. He needs a statement from the City saying the sewer and water rates will be $8,000.00 to $9,000.00. Council Member Bergeson stated Mr. Schmidt needs to reduce expenses or increase his revenue. He asked for what period the bill should be at $8,000.00 to $9,000.00. He suggested maybe there was an error in another line item. Mr. Schmidt stated he has examined and picked apart the bill. Council Member Kuether suggested the rent be raised on the remaining six (6) units. Mr. Schmidt stated that was not a good idea as rent fees are compared quite often. Council Member Bergeson stated that it is strange that on a $2 million project there is not a contingency for this type of issue. Mayor Landers suggested the issue be brought to the next work session. Mr. Schmidt thanked the Council for listening to his concerns. Council Member Neal asked if watering the lawn was included in the bill. Mr. Schmidt stated that a well for underground sprinklers had been suggested. Mr. Schmidt stated that 75% of the complex is occupied. There are no users in 25% of the complex. He asked for recognition of this in calculating the user fees. 3