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1 <br />COUNCIL WORK SESSION MAY 3, 1995 <br />until the middle of next week. Mr. Schumacher explained that a <br />development agreement must be completed and the proposal has to <br />be presented to the Planning and Zoning Board and the Park Board. <br />Mr. Derrick explained that he had recently completed a senior <br />project in Oakdale consisting of 114 units. He noted other <br />projects he has completed in the metro area. <br />Mr. Derrick explained that all financing has been completed. <br />Another lender has been secured and NSP will buy the federal tax <br />credits. He noted that he is ready to bid the project and start <br />pre- marketing the housing units. There is a requirement that a <br />certain number of the units be pre - leased before construction can <br />actually begin. Mr. Derrick explained that he would like to give <br />the senior citizens of Lino Lakes first chance to rent the units <br />and would like to have a marketing person in the senior center to <br />sign reservation forms. When the list of reservations is <br />completed, the list will be sent to a management company that <br />takes the full application and then a lease is signed. Mr. <br />Derrick said he would like to get word to the community regarding <br />the availability of the senior housing units through the local <br />newspaper, City newsletter or other local information channels. <br />Council Member Kuether asked if there is any assurance that Lino <br />Lakes residents will get first chance to rent the units five (5) <br />years from now. Mr. Derrick explained that it is illegal to give <br />a guarantee that Lino Lakes residents will get first <br />consideration. If the City had a public housing authority, he <br />could work through this agency and guarantee that Lino Lakes <br />residents would get the first opportunity to rent units as they <br />become available. However since there is no public housing <br />authority, Mr. Derrick said he would work with the City to see <br />that Lino Lakes citizens would get the first opportunity to rent <br />units as they become available. <br />Mayor Reinert asked about the financial structure of this <br />project. Mr. Derrick explained that the Tax Increment Financing <br />(TIF) remains the same as originally presented. However, a <br />portion of the TIF will involve the 10 single family homes. <br />These homes will be constructed for first time home buyers. NSP <br />will purchase the tax credits and be the major financier of <br />project. The City has agreed to certain financial concessions <br />regarding costs of permits and Cottage Homesteads will be asking <br />for additional assistance of approximately $71,000.00 so that <br />rents can be kept at the figure originally quoted. <br />Mr. Saxton said he understood the need for a financial analysis <br />as Mr. Schumacher has outlined. However, he noted this project <br />has been scrutinized by everyone involved. Mr. Saxton said that <br />PAGE 3 <br />