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1 Regular Council Meeting <br /> 2 July 28, 1992 O <br /> 3 Page 22 <br /> 4 <br /> 5 <br /> 6 <br /> 7 indicated the only impact would be if the bonds on the <br /> 8 original district were not paid because the Kenzington, <br /> 9 Walker, and Autumn Woods collectively failed. The taxpayers <br /> 10 would then have to pay off those bonds . However, the <br /> 11 likelihood of failure is very low because all those projects <br /> 12 were more successful than the City anticipated. The <br /> 13 Kenzington might not look like a huge success because the <br /> 14 condominium market fell and they are not all owner occupied. <br /> 15 In fact some of those units are in tax forfeiture as far as <br /> 16 the rental side goes. In spite of this, the project is still <br /> 17 paying more than anticipated and the City is only using the <br /> 18 surplus funds which go to pay off the bonds for the South End <br /> 19 project. The Mayor continued by telling Mr. Cavanaugh the <br /> 20 Walker project doesn' t have a vacancy. The Autumn Woods <br /> 21 owners reported 100% occupancy last week and they are also <br /> 22 taking advantage of the market and refinancing the personal <br /> 23 bonds they have in the project. <br /> 24 <br /> 25 Mr. Burt told Mr. Cavanaugh the City is authorizing a one <br /> 26 million dollar budget for the South. End Project but if the tax <br /> 27 increment financing were not in place there would be no other <br /> 28 means of doing the project. The costs will depend on the a <br /> 29 price the City can negotiate for the purchase of the two cafe <br /> 30 properties and whether condemnation would be necessary. Any <br /> 31 expenditure would have to come before the Housing and <br /> 32 Redevelopment Authority. He added that there is an advantage <br /> 33 to having the City as the developer because the project will <br /> 34 be developed just as approved without incentives to an outside <br /> 35 developer which clearly the City wouldn' t want to give. <br /> 36 <br /> 37 Mr. Burt reported receiving only one phone call regarding the <br /> 38 project which asked what the City was going to do with the <br /> 39 land which is acquired. He said the caller was going to be <br /> 40 out of town for this hearing so he had sent out a copy of Plan <br /> 41 D and hadn' t heard any further from that caller. <br /> 42 <br /> 43 No one else raised questions or spoke either for or against <br /> 44 the proposal. <br /> 45 <br /> 46 Motion by Enrooth, seconded by Wagner to close the public <br /> 47 hearing at 9 :43 p.m. for Council action. <br /> 48 <br /> 49 Motion carried unanimously. <br /> O <br />