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94 COUNCIL MEETING MARCH 22, 1993 1993 The January 25, 1993 public hearing was continued to evaluate options for senior housing. At that time the tax credits necessary for financing were not available. Since then the Clinton administration has moved toward supporting a new round of tax legislation. Therefore, Mr. Roger Derrick of Homestead Cottages has requested resumed support of the senior housing project and authorization for use of TIF. Mr. Mike Saxton President of Homestead Cottages explained that he is confident that congress will extend legislation for tax credits. He noted that Homestead Cottages is working with Dain - Bosworth, Inc. to establish a program for the sale of taxable bonds for additional financing of the project. Mr. Saxton felt that the sale of the bonds would proceed when the tax credits are secured from the State Housing Finance Agency. He also explained that the development is dependent upon the establishment of the Tax Increment Financing District and the adoption of a modification of the existing plan. All of this will allow for the reduction of rents to make them affordable and meet federal guidelines. Tax credits allocated by the Federal Government will be an important component of the financing package. Application for the federal tax credits were made last year and Mr. Saxton felt that his project has priority for 1993. He noted that the City Council has supported Homestead Cottages in the past by writing letters to the State Health and Finance Agency. This has been helpful in establishing Homestead Cottages priority. Mr. Saxton asked that the City Council adopt the TIF plan so that Homestead Cottages can take the next step in the program, start the marketing aspect. A tentative date of April 17, 1993, 2:00 P.M. has been set to meet with prospective renters. Mr. Saxton noted that this meeting will be advertised and asked that some of the City Council and City Staff also attend this meeting so that all questions asked by the public can be answered. Council Member Elliott asked if the proposed project is similar to the senior cottages in North St. Paul near Target. Mr. Saxton said yes, however they would be more like the cottages in the City of Oakdale. Council Member Elliott noted that these were attractive and well maintained. Mr. Ron Batty was present in the audience to answer any questions about this particular TIF program. Council Member Bergeson asked what would happen if the City Council adopted this particular TIF program and then congress did not extend tax credits. Mr. Batty PAGE 8 1 1