05/03/1995 Council Minutes - Laserfiche WebLink

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COUNCIL WORK SESSION MAY 3, 1995 Cottage Homesteads has met all requirements and if for some reason the City cannot provide the extra $71,000.00, the rents will have to be adjusted accordingly. Mr. Schumacher noted that the original City subsidy was for 90 units. Now the number of units has been reduced to 47 and an analysis is being made of how many dollars should the City subsidize 47 units. Mr. Saxton said the formula has not been changed. The TIF is still 90%, however, this will not generate enough subsidy for only 47 units. The 10 single family units are needed to keep the rent at the agreed upon rate. Mr. Schumacher asked if the project is reduced from 90 to 47 units, shouldn't the dollars be reduced proportionately? Mr. Saxton said the City is still capturing 10% and the project will need the proper zoning and additional support from the City. All other financial commitments have been secured. Council Member Kuether asked what are the financial qualifications for securing a unit. Mr. Derrick explained. Mayor Reinert noted that this project was started more than three (3) years ago. He also noted that a project in Circle Pines is already under construction and they started their project after this one was started. Mr. Derrick explained that the delay was in obtaining the tax credits. He said he was not aware of how Circle Pines obtained their tax credits so fast. Mayor Reinert asked if the City is being asked to contribute additional dollars to the project. Mr. Saxton said no additional TIF dollars, however, he is asking for further concessions on building permits. Mr. Powell said he believed that Cottage Homesteads is asking for further concessions on permits in the amount of approximately $71,000.00. Mayor Reinert asked what would happen if the City refused to provide additional contribution. Mr. Saxton said the rent would increase approximate $15.00 per month which means that they may not be rented to Lino Lakes residents. Council Member Bergeson asked what the City would gain by approving the Cottage Homestead project. Mr. Saxton said that the City would be providing housing for the seniors of Lino Lakes who do not have a lot of money to pay for rent. Council Member Bergeson said he would like to see a comparison of what the City is contributing to the project and what the City will gain from the project. Mr. Saxton said that one benefit is that the rent will be reduced by $120.00 per month with City subsidy. Mayor Reinert said he felt the project was important because it gives the City a balance of available housing. However, he felt PAGE 4 1 1