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-2- The Councilman reported he is still receiving calls about the rusty water in the City water system. Mr. Childs said the City crews are • continuing a program of flushing out the lines . Councilman Marks reported John Madden , a resident of the Fosston Townhomes , 3501 37th Avenue N.E. , is concerned whether the ash trees in front of his home would have to be removed when 37th is rebuilt. .The Manager confirmed that because of the high grade proposed for the new roadbed and the fact that the City will be installing a watermain in that location, there is little possibility the trees along the north side of that street can be saved. However, he is certain any trees which have to be removed would be replaced by stock of the same species and good size. possibly from Larry Hamer's plantings . The progress report from Jack Boarman., architect for the 60 unit senior building proposed to be constructed on Kenzie Terrace by the Northeast Senior Federation, was accepted as addendum to the agenda. Mr. Boarman read the letter the Council had just approved for .sub- mission to HUD indicating the City' s support of the project and said he believes this support and the City ' s commitment to using CDBG funds to provide safe access for the seniors across Kenzie Terrace in the form of a crosswalk signal., can ' t help but be a positive factor in convincing HUD officials that this proposal deserves highest priority for 202 financing. The architect then- told of the Federation ' s plans to construct a sidewalk which will tie Wilson Street into the crosswalk and would serve not only this building, but the trailer park and any future residential development of the body shop property • next door. Mr. Boarman said he has developed statistics which he believes should correct any misconceptions held by HUD officials that, because some of the senior housing across the river has been under- utilized, this project might not be feasible . He believes he has been able to demonstrate that , not only are there not such vacancies in this area, but 500 seniors have indicated in writing that they would be interested in occupancy in this building. Although the Hennepin County Traffic Engineer has told Mr. Boarman the traffic counts on I:enzie Terrace have gone down from 13 ,000 to 8,000 vehicles , the Federation representative indicated he has argued that these volumes would undoubtedly be increased greatly with the erection of this building and the proposed redevelopment of the vacant shopping center property across Kenzie Terrace . Mr. Boarman recom- mended the City request a resolution of support. from Hennepin County. Motion by Councilman Marks and seconded by Councilman Enrooth to direct the City Manager to seek a resolution of support and monetary aid for a crosswalk signal in front of the proposed senior building on Kenzie Terrace from A. J. Lee , Hennepin County Public Works Director. Motion carried unanimously . Mr. Childs agreed to prepare for Council consideration a chart which would compare May ' s liquor sales with revenues received from the same period in time in previous years , but reiterated that, though liquor sales might be down, the total City liquor operation is still showing a profit because of cost cutting measures taken by the Liquor Manager . Councilman Ranallo would still like to hear from Mr. Nelson what promotions he is sponsoring to improve the financial picture for the