HRA AGENDA 11101987 - Laserfiche WebLink

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1 Commissioner Ranallo said he had discussed the project with Father 2 Kittock of St. Charles who was very favorable to the whole project, 3 but suggested that thought be given to allowing the balconies be 4 enclosed for three season use, similar to ones he and the priest had 5 viewed in Bloomington, to add a little more interest to the build - 6 ing. 7 Mr. Krier said that option could be brought up during negotiations 8 later that week because the architects design drawings had been 9 delayed by problems encountered with the survey. Mr. Childs said 10 part of the problem had been because the surveyor had left off a lot 11 on the property where the upholstery shop is now located on Kenzie 12 Terrace which the Executive Director had assured the architect posed 13 no real problem for the project since the assumption remains that Mr. 14 Saliterman wouldn't sell any of the property without the inclusion of 15 that parcel. Mr. Krier indicated he had the surveyor and the title 16 company working together on the problem. 17 In reference to the balcony enclosures, Mr. Gaughan said his company 18 likes to keep their buildings "clean, crisp, and uniform" however, 19 what the St. Charles pastor had suggested was more suited to a 20 condominium than an apartment building. He said such additions would 21 be very expensive and to put them on rentals would be impractical and 22 might create a "scuddy" appearance. Mr. Childs indicated he per - 23 ceived that was an item which could be added with condominium 24 conversion. 25 Risks Pointed Out by H.R.A. Consultant 26 A discussion of the reasoning behind the new name the redevelopers 27 had taken ensued, followed by the Consultant's pointing out the only 28 risk he perceived the H.R.A. would be taking in the contract before 29 them. He pointed out how important the financing was to the whole 30 project and said the developer is working closely with Piper Jaffray 31 to get that in place before the interests rates go any higher. 32 However, he said the lender is very happy with the project and only 33 has a few items left to be resolved. 34 The H.R.A. would not want to acquire the property without having a 35 redeveloper's contract signed and a Letter of Credit in place, the 36 Consultant said, so there is a very slight risk, that the property 37 might not be acquired and in the meantime the developer has under - 38 taken between $250,000 and $300,000 in costs to put the financing 39 package together which the contract dictates he must be reimbursed 40 for if the land isn't acquired. He said he considered that to be 41 less risk than risking the whole project on higher interest rates 42 which make the project unfeasible. 43 H.R.A. Action 44 Motion by Ranallo, seconded by Marks to adopt the resolution which 45 directs the H.R.A. Chair, Executive Director and Consultant to 3