04/22/1992 Council Minutes - Laserfiche WebLink

Home Search

1 1 1 COUNCIL WORK SESSION APRIL 22, 1992 project in Lino Lakes_and does the Council think this is a good location for the project? If the answer to both questions is yes, then the next question is will the City Council support the proposal with Tax Increment Financing? Mr. Schumacher explained that the area is now an economic development TIF District. The City Council will have to take action before July 26, 1992 to make this a residential TIF District. If action is not taken before that time, the area remains an economic development TIF district for six (6) more years. Council Member Kuether asked if residents will be allowed to plant flowers. Mr. Derrick said yes, the concept is to make seniors feel at home. They may also have a pet, but there are restrictions on pets. Mayor Reinert asked if there were rental restrictions? Mr. Derrick said there were very strict rules. He noted that although this is subsidized housing, no one thinks of it in such terms. He noted that the construction is superior, it is slab on grade, forced air heat, air conditioning, and transit heating in the floor. After 15 years, the government subsidizes are eliminated but because of the economic of the situation, rents go up only about 3% per year. It should always be affordable. Mayor Reinert asked if the City would "carry the ball" in a high subsidized manner? Mr. Derrick explained that the City would still realize the same amount of taxes from the property as prior to the construction. He noted that the TIF is 90% of the excess tax after the project is completed. He also noted that there are less costs to the City for senior housing. The streets are private and do not require any snow plowing or maintenance, there are usually less police and fire calls and senior housing puts less stress on the school system. Mayor Reinert asked if Mr. Derrick has calculated the approximate value of each unit? Mr. Derrick explained that the Anoka County Assessor would do this. He also noted that the units would be title II taxes which is similar to homestead taxes. The assessor can also analyze and give estimates of what TIF is going to do to the taxes. Council Member Neal asked when building is planned to start. Mr. Derrick explained that it takes about six (6) months to go through the governmental processes. It takes about 90 to 120 days to process the financing portion of the project. The entire project takes about 9 months before construction can start. Mayor Reinert asked that Mr. Derrick come back to the next Council work session prepared to outline the impact to the City and provide additional layout information. Mr. Derrick said that PAGE 6 281