Laserfiche WebLink
-5- <br /> impressed with the project being sited in the middle of a "sort of campus <br /> • with all ages included", which the Councilmember indicated he perceived <br /> was the point to which the redevelopers had returned with their new proposal . <br /> Enrooth - was concerned whether the commercial area there now, which he perceived <br /> was comparable to some of the worst sections of the Twin Cities, would <br /> ever be redeveloped; <br /> - was concerned the rents the redeveloper was now proposing would be amenable <br /> to an element very different from what the City had originally envisioned <br /> with owner occupancy. <br /> Mr. Childs indicated all these concerns would probably be brought up at the public <br /> hearing and he told the Councilmembers the preliminary plans which the redeveloper <br /> had shown to the Planning Commission were already being changed to reflect some <br /> of their suggestions. He also said he would a working with Mr. Treptow to determine <br /> whether the cash flows for retiring the bonds were possible for the different <br /> values he saw for the new project as compared to the 300 unit senior rental project <br /> the City had approved in December. However, it was already apparent to him that <br /> those values were off a couple of million dollars and that the City would have <br /> about 20% leverage in terms of additional amenities to make the project work. <br /> The Manager said even with lower interest rates and the fact that the school <br /> referendum had raised the total City mill rate from 100 to 111 , he perceived <br /> that if the City were to require the developers to raise the property values <br /> by $2,000,000 to meet the bond requirements, amenities more in keeping with the <br /> quality originally approved for the project would probably have to be added which <br /> the Manager perceived, would force an adjustment of rents to pay for those additions. <br /> • Mr. Childs reminded Councilmember Enrooth that the same conditions which bothered <br /> him now had caused the City to look at the redevelopment of that shopping center <br /> in the first place. <br /> Mr. Childs told the Councilmembers he perceived the City would be faced with <br /> some "tough choices" regarding this project, because if the property values aren't <br /> elevated to meet the bond requirements, he wasn't certain -what other alternatives <br /> the City had. <br /> The Manager said he would be keeping his promise to Minneapolis Alderman Dziedzic's <br /> representative to let the Alderman's office know that changes in the project <br /> are being considered at this time. <br /> Before the meeting was adjourned, the Councilmembers compared the space available <br /> for this project with other City apartment complexes on the Zoning Map. <br /> Manager's Reports <br /> *Lease Options for Apache Wells Bar Considered <br /> The reference in the October 10th staff notes to Mr. Nelson's negotiations <br /> with the Rein Company prompted Councilmember Makowske to comment that she perceived <br /> the option for moving the bar next to the new warehouse would be worth checking out. <br /> Mr. Childs told her she was the second Councilmember to suggest that option be given <br /> serious consideration during the negotiations. <br /> • *Lease Extension for City's Use of ParkUiew <br /> Mr. Childs reported the District #282 School Board had agreed to extend the lease <br /> at the same rate for the next two years with the deletion of space the City had <br />