07-24-1997 - Laserfiche WebLink

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total project cost of $5 million, the EDA should consider their financial interest and legal responsibilities tied to financing a development of this magnitude. Specifically, the • relocation budget should be backed by a more detailed displacement plan to assure that enough funds are being set aside. We have not received a complete assessment of the current status of the tenants as of this date to determine how many people may be displaced or not able to afford the increase in rents. If the budget is short for relocation, then the tenants could request and possibly require the City to make up the difference since we are partially funding the rehabilitation. Another questions we may want to address is security on repayment of the loan and if this is important or not. Dave Maroney will be at the meeting to address any questions you may have and go over his recommendation to address these issues. The use of funds is seen as very acceptable under the goals for use of tax increment. Our Tax Increment Attorney, Jim O'Meara is preparing a draft development assistance agreement. We can incorporate terms into the agreement prior to its final draft. Management: One of the main concerns for successful apartment living is quality, effective management. The Partnership has contracted with Danzeisen Properties to provide property management for SLC. President Lori Danzeisen has years of experience turning around distressed properties throughout Minnesota. As an example, she was involved with the management and turn around of a problem complex in St. Paul called Pine Tree Park Apartments. Her work on with this property gained her a letter of commendation from then Mayor Scheibel. The Danzeisen management style focuses on strict tenant • screening and enforcement of management rules as well as providing a feeling of community within the complex. Lori likes to get residents involved in activities within the complex and working with the neighborhood to address concerns from previous management. I contacted several people who have worked with Lori and all the reports were excellent. I will provide a summary of comments at the meeting. In addition, Lori will be present to provide insight into her management philosophy. Conclusion: This is a ton of information to digest but I wanted to provide you with enough information prior to the meeting to enable you to make a sound recommendation regarding the tax increment request even though the recommendation may be a conditional commitment You should consideration what the goals for the City are regarding this development. Some of the goals are to increase the tax base, reduce blight, provide jobs, improve the aesthetics of the corridor and reduce the effects of uncontrolled social issues that tend to put a large burden on the public sector. Aside from the financial evaluation these goals need to be considered. Attachments to Staff Report 5.A.: site plan, School District Letter, Planning Commission Staff Reports, Letters from MSP Real Estate (June 9th & 25th), Public Notice, Comments from TIF Consultant Dave Maroney dated July 18th and Property Management Information. •