08-25-1997 EDA - Laserfiche WebLink

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EDA Meeting#40 July 28, 1997 UNAPPROVED Page 3 1 will be provided,one for larger kids and one for small gchildren. Mr.Pinkerton provided a slide III 2 presentation showing the natural buffer area that will surround the development. 3 4 Mr.Jeff Huggett of MSP Real Estate provided a brief summary of the recommendations by the EDC,and 5 the Planning Commission. He noted that the Planning Commission,the EDC,SRF Consulting Group, 6 Towle Real Estate and Mardell Amundson Appraisers have all reviewed the property and have determined 7 that this development is the highest and best use for the property. He presented a diagram depicting 8 neighboring residents who they have spoken to personally in regard to the development and who have 9 signed a petition infavorof the proposed development. He also provided a estate tax analysis on the 10 proposed development. 11 12 Ms.Lori Danzezan of Danzezan Properties was present and discussed issues pertaining to management of " 13 the project. 14 45 Mr.Mike Amundson of Mardell Amundson Johnson&Leirness,Inc.was present and discussed the u<, 16 Section 42 Property Evaluation. He noted that in his experience in evaluating Section 42 properties,he 17 has not found an instance where the property values of adjacent properties has been hurt. He believes 18 that this is because a property that receives a subsidy requires private investment and the private 19 investment is very much at risk. Investors of these properties tend to keep very close attention to the 20 management and ownership of the properties: He provided a copy of the article which appeared in the 21 Appraisal Journal in regard to the impact of low income housing on property values. 22 • ii , 23 Ms.Bennett explained that Resolution No.97-EDA-72 would give conditional approval of sale based on 24 the project. If the project did not go forward.the EDA would not be obligated to sell the land to MSP 5 Real Estate: 26 s 27 Presi denitrlcCarty.explained that the developer must meet all of the requirements of the EDA before the 28 property.:cQuld be transferred. 29 .• •• • L---- 30 Ms.Bennett explained that the developer needs to know that all of the land is going to be sold for the 31 project For financing,they need to know that they have conditional control of all of the land to make the 32 project go forward. 33 34 Commissioner Stigney wondered if this would be a commitment for the city. 35 36 President McCarty stated only to the extent that the developer meets the requirements that the city has 37 reserved to itself. It gives the city a wide open opportunity. Attorney Long explained that by passing a 38 conditional approval of the resolution,the council is directing staff to say that they are prepared to 39 consider a development agreement with the entity that will come back before the EDA,Board that would 40 lay out all of the final terms: 41 42 Jerry Linke,2319 Knollwood Drive,stated he is not opposed to low-income housing. The median income 43 for the residents of Mounds View is$35,000. Forty percent of the residents live in mobile homes or 44 apartments. Additionally,he has concerns that this development may affect the tax capacity value of the 45 city as a whole. This would increase property taxes throughout the city. He stated he feels Mounds 46 View is overburdened with low income and rental housing and he would urge the city not to proceed with • 47 this project. Furthermore,he noted that the appraisal of$1.20 per square foot was probably based on 48 apartment use. It would likely be higher if it were based oncommercial use. 49 41 50 Cindy Carlson,Western Bank,discussed.her understanding of the 1%tax rate. She stated she believes 1 the 1%tax rate is for those property owners that elect to have their properties categorized as ones that 52 have a preponderance of tenants that are classified as low andmoderate income. 53