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H.R.A. MEETING 2 JUNE 25, 1991 3 PAGE 3 4 5 6 to take title if it were to condemn the property. The City 7 Attorney stated that this would be the case but that 8 frequently when condemnation proceedings ., commence 9 negotiations also start and the developer closes the sale of 10 the property with the seller. 11 12 B. LaNel - Autumn Woods Project 13 A letter was received from Frank Lang, developer of Autumn . 14 Woods, requesting the Council to consider amending the 15 Development Agreement for the Project to provide for the 16 reimbursement to the Developer from excess funds available 17 in the Tax Increment Fund to cover real estate taxes in 18 excess of 61,200 per year. The maximum . amount of 19 reimbursement being requested would be 550,000 per year and 20 the Agreement would commence for taxes payable in 1991 and 21 continue until taxes payable 1998. 22 23 Presently, each unit in the development generates about 24 61,800 per year in taxes. The developer feels a "safety net- 25 could be implemented and place the tax ceiling at 61,200. The Executive Director advised that the developer knows the 28 property values and wants to make a formal presentation on 29 this matter along with a formal request. 30 31 Chairperson Ranallo recalled that when the Tax Increment 32 District was established the taxes were based on a realistic 33 amount. He noted that presently the H.R.A. has a substantial 34 fund balance in the District. Occupancy of -the project is 35 about 96/98%. The Chairperson felt renters would be easier. 36 to keep if taxes did not rise every two or three years. He 37 noted other positive impacts this development has had on the 38 area, specifically the improvements done at the St. Anthony 39 Shopping Center. He also recalled that the City Council had 40 intervened with Hennepin County to reduce the valves on the 41 property thereby reducing the property taxes. 42 43 Commissioner Wagner inquired if a stable tax rate is 44 anticipated for 1992. The Executive Director noted that the 45 rate tables are coming down but does not know if this will 46 be the case in the future. The Executive Director also 47 observed that this development had been successful in 48 attracting present residents of homes in St. Anthony thereby 49 freeing up homes for younger families to purchase. 50 Commissioner Enrooth suggested that the Agreement be dealt is with on, a year by year basis rather than until 1998. 53 Commissioner Wagner wondered if Frank Lang would still be 54 involved with the project in 1998.