03/30/1994 Council Minutes - Laserfiche WebLink

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1 1 SPECIAL COUNCIL MEETING MARCH 30, 1994 Mr. Schumacher and Mr. Schneider also considered what impact a 90 unit senior housing proposal would have on the City and school district services as compared to a 27 single family development. They have concluded that the impact to the City is a "wash" and there would be no effect on the school district since senior citizens usually do not have school age children. Seniors use less water because normally there are no more than two (2) persons per unit and often only one (1) person per unit. The do not require fire and police service as often and do not generate the traffic that a single family unit generates. Mr. Schumacher noted that some of the assessments and taxes on the property are delinquent. Mr. Derrick explained that they would be "brought up to date" prior to recording the property in the name of Homestead Cottages and applying for building permits. Council Member Kuether asked what the Tax Increment Finance (TIF) amount would be. Mr. Derrick explained that the TIF would be structured on the "pay as you go" basis. There will be no need for the City to sell bonds to cover the TIF request. Ninety (90) percent of the real estate taxes will be refunded to Homestead Cottages after they are paid to help reduce the rents. Mr. Derrick explained that TIF applies only to the new taxes that will be generated from the improvement and not to the current taxes. Mr. Saxton explained that the TIF is for 15 years and the portion of the TIF to be returned to Homestead Cottages will remain at 90% for the full 15 years. He estimated that $75,000.00 of TIF will be generated each year and it will be applied to the rents. This would mean about $1,215,000.00 of TIF will be realized over 15 years. Mr. Saxton noted that technically the TIF off sets the cost of the project and this manifests itself in reduced rents. Council Member Kuether asked how many units will be rented for $399.00 per month. Mr. Derrick said that three (1) one bedroom units will be; available. There will also be some two (2) bedroom units available at $499.00 per month. The one (1) bedroom units have 728 square feet and the two (2) bedroom units have 878 square feet. Mr. Derrick noted that the rents for these specific units may be adjusted depending upon the final subsidy from the City and the final interest rate charged by the bank. He also explained that there will be 36 units with attached garages and 54 units with detached garages. The detached garages will be clustered in several areas and will be constructed along with the project. Council Member Kuether asked how Homestead Cottages arrived at the proposed rent structure. Mr. Derrick explained that they PAGE 2 14;1