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-.5- a RESOLUTION 80-0.21 A RESOLUTION APPROVING A. J. HERLITZ ADDITION Motion carried unanimously. a Because a..recent court ruling-appears to foreclose tax increment financing. by the City for the senior housing -proposed for Kenzie Terrace, several members of the board of the Northeast Minneapolis/ i St. Anthony .Senior. Housing .Corporation, proponents of. senior housing for St. Anthony, appeared- to-. seek Council -support-for a modification which may qualify for tax increment financing. The new proposal calls for the same number- of. units for the elderly to now be housed in what would technically be two rather than one building with 84 rent-assisted units in one building and 54 owner-occupied coopera- . tive units in the other. The rental units will be constructed with 202 HUD financing and Section 8 rental assistance and the coopera- tively-owned building can be constructed with a seven percent Govern- ment National Mortgage Association loan and will qualify for tax increment financing of- land costs since, unlike the first proposal a which- would be -owned by -a tax-exempt entity, -it may pay -property - taxes to the City. Jack Boarman, architect for both projects, explained the two buildings will now be connected with an -open-sided canopy over the dividing property line and there will. be more parking provided in this proposal than in the first, .with.underground garages to be built for each unit. The cooperative dining hall and other common areas proposed for the first .project will be'-retained -for this building as well. In response to questions from the City Attorney and Doug Jones, of the Planning Commission, as to why the corporation had opted for the cooperative apartments .rather than condominiums, .Mary Gabler of GNMC; who is providing. -the corporation with technical advice for development of senior housing which will be acceptable to both the* City and HUD., said the corporation believes they will retain more control of the operation if the apartments are cooperative and Mr. Boarman said they will be better able to plow the profits back into the association with this type of ownership. The "Gimmic" represen- tative also said the same concept in senior housing has been accepted by HUD for Golden Valley- She also told the Council that .in the ' event the .Minnesota .hegisla-ture should,. as it appears .likely this session, overrule the court decision that non-profit organizations . do not pay real estate .taxes,. the .City could realize $55 ,000 in property taxes through tax increment financing. 'n Mr. Soth wondered if it might not also be possible that the courts might also exempt cooperative ownerships from paying property taxes. j Mr. Jones questioned whether 'Ithe resale of cooperatives would be as good as for condominiums,.•,,say_ing cooperatives do not appreciate at the same rate as condominiums. ..- He wanted the bylaws. of the owners association written to assure the resale prices of the units will reflect the current Consumer Price Index and suggested there is -need- for more energy efficient- housing for senior citizens which • makes construction more expensive. Donald Risk, another board member, estimated HUD will pay $:120 , 000 of the costs -for eighty 202-funded units, and .possibly $2,000 per unit -for the 54 cooperative apartments, _leaving $95, 000 for -land costs, $25 ,000 for demolition and relocation