03/30/1994 Council Minutes - Laserfiche WebLink

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1 1 SPECIAL COUNCIL MEETING MARCH 30, 1994 this manner, the senior housing proposal compares favorably with the smaller housing project. Mayor Reinert noted that no community has tried to build a senior housing project using this proposed financing system. He noted that First Bank is required to reinvest in the community and NSP is investing to bolster their image. The City will also benefit from its participation. Mr. Saxton explained that First Bank is saying they will invest if the City is willing to invest. The entire project will promote a positive image for the community, NSP and First Bank. Mayor Reinert said, based on the conversation this evening, what is Cottage Homes requesting from the City. Mr. Derrick said that he would like the City to prepare a resolution using the three (3) points listed in Mr. Saxton's letter of March 28, 1994 with one (1) additional item, (4) authorize the staff to initiate action in support of housing revenue bonds to support the project. Mr. Saxton explained that the City will act as the issuer of the bonds to get the tax credits. The resolution will be used by Cottage Homestead to complete their application at First Bank. Council Member Neal asked when construction would begin. Mr. Saxton explained that it would take about 60 days to complete all the financing requirements and fulfill the recording requirements. Mr. Derrick noted that Cottage Homestead will request an authorization for an early start on the project. Council Member Elliott moved to approve Resolution No. 94 - 23 Acknowledging: 1) the site on Elm Street is zoned for 90 senior cottage rental units plus clubhouse, and that sewer and water is available and can be connected to the site, and all necessary governmental approvals are in place; 2) Tax Increment Financing has been approved and will be implemented according to the Tax Increment Financing plan; 3) the City has given approval to an additional rent subsidy program which will be funded by the City waiving fees as follows: City SAC Unit Charges, $50,260.00, City WAC Unit Charges, $123,275.00, City Park Dedication Fee, $8,160.00; and 4) authorize staff to initiate action in support of housing revenue bonds to support the project. Council Member Neal seconded the motion. Motion carried with Council Member Kuether voting no. Council Member Elliott moved to adjourn at 7:15 P.M. Council Member Neal seconded the motion. Aye. These minutes were considered, corrected and approved at the regular Council meeting held on April 11, 1994. PAGE 6 14