Laserfiche WebLink
1 <br />1 <br />1 <br />SPECIAL COUNCIL MEETING MARCH 30, 1994 <br />nursing home. This made him realize that senior housing was <br />needed. <br />Council Member Kuether asked Mr. Saxton how he makes money on <br />senior housing projects. Mr. Saxton explained that his firm <br />shares in the cash flow. He also explained the structure of the <br />limited partnership and general partner. He noted that there <br />will be a co -general partner as well. <br />Mr. Saxton explained that he has developed his business concept <br />to serve those who have existing homes and want a carefree life <br />style. Unfortunately, all state funding is now going to family <br />housing rather than senior housing so that alternative financing <br />if needed. <br />Council Member Kuether asked why this money is needed now. Mr. <br />Saxton explained that he would have received a 9% tax credit if <br />the state had not decided that family housing was more important <br />than senior housing. He will now receive a 4.5% state tax credit <br />and he must find a way to make up the difference in financing. <br />Council Member Kuether asked Mr. Schumacher if he knew what a 27 <br />unit single family housing development would generate in taxes. <br />Mr. Schumacher explained that he had not calculated this figure. <br />Mr. Derrick explained that the senior housing project would <br />generate more taxes per year. <br />Mayor Reinert explained that the City Council should consider the <br />entire impact that each proposed development would have on the <br />City and the school district. He noted that although there will <br />be more senior housing units, all indications are that the senior <br />housing development will have a lesser impact on services. <br />Council Member Kuether said that she would have a hard time <br />supporting the proposed senior housing development because the <br />citizens are not aware of the proposal. She felt that the <br />citizens should have some input. <br />Mr. Schumacher explained that the proposal has a long way to go <br />before it is finalized. A development agreement has to be <br />drafted and there are still many financing issues to be <br />completed. He noted that different elements of the proposal are <br />still changing. <br />Council Member Kuether noted that the City Council is making <br />every effort to keep the rents low. However, the low rent units <br />could be rented to someone outside who is not a resident of Lino <br />Lakes. Mr. Derrick explained that every effort will be made to <br />rent to Lino Lakes residents first. <br />PAGE 4 <br />14/ <br />