11/15/1982 Council Minutes - Laserfiche WebLink

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Special Meeting November 15, 1982 2 Mr. Marier said that's the point they are Auditors. Mr. Reinert moved to engage the firm of DeLaHunt Voto Company for the 1982 audit with the declared intent of this Council to retain this firm for three years. Seconded by Mr. Marier. Motion carried unanimously. Mortgage Revenue Bonds Mr. Schumacher noted that a letter from Mr. Bill Hawkins had been received this date answering the Council's request for more information on these bonds. The Council took time to read the letter. Mr. Schumacher felt the letter summarized the law, noting that a public hearing must be held. There are five developers interested in this means of financing and are requesting 5/6 Million dollars. Mr. Marier asked who the developers were and Mr. Schumacher listed El Rehbein & Son, Glenn Rehbein, Ulmer's Const., Nelson Properties and Schilling Const. Mr. Marier asked if this involved any new plats and Mr. Karth said, No, this would be used on existing lots. Mr. Marier asked about money in escrow and Mr. Karth said the package plan is paid for by the developers and they must also deposit a percentage on the bonds. Mr. Marier asked what percentage for each? Is that part of the agreement? Mr. Karth said, Yes, this is decided before the bonds are sold. Mr. Marier asked what happens if one of the developers back out and Mr. Karth said the amount of money he had requested is not sold or else one of the other developers picks up that amount. I Mr. Reinert felt that there was not much detail as to the impact on a community in Mr. Haskin's letter. Mr. Schumacher introduced Mr. Dave Liddle of Dain Bosworth, who has worked on one of these plans for the City of Sauk Rapids. Mr. Liddle explained that a housing plan is required by the State, it is submitted to Metro Council for their review and approval, and some of the information that is needed such as the impact on schools, sewer, police, fire, etc. The people eligible must be first time home buyers, must fall within a certain income bracket and the price of the home must be within a certain price range. Mr. Reinert asked if the standards of the community as to the type and size of a home that can be constructed is affected and Mr. Liddle said, No, as long as the price range is met. Mr. Reinert asked Mr. Karth the cost per square foot of home construction and Mr. Karth said the 960 square foot split entry in Shenandoah II are selling for $66,900.00 and that a sewered lot. Mayor Benson asked if the income restrictions are related to the type of home that could be purchased? Must it be a single family home or could it be an apartment or some other type of housing? Mr. Liddle said yes, there is no distinction as to the type of home. I Mrs. Elsenpeter asked who makes the decision as to what percentage is used for new homes or used housing? Mr. Liddle said the City makes that decision. It would appear that this City is more interested in new housing. Mr. Kulaszewicz noted that this is the positive side of this program, what is the negative part? Mr. Liddle said the negative side is that the program must be completed by Jan. 2,