CC WORKSESSION 11111985 - Laserfiche WebLink

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CITY OF ST. ANTHONY SPECIAL WORK SESSION ON KENZIE TERRACE REDEVELOPMENT PROJECT November 11 , 1985 The work session regarding changes from condominiums to rental units in Phases IIB and III of the Kenzie Terrace Redevelopment Project, which had been requested by the developers, Arkell Development Company, convened at 7:30 P.M. with the following in attendance: Mayor Sundland and Councilmembers Marks, Ranallo, Enrooth, and Makowske; Planning Commissioners Franzese, Madden, Wagner; and Bowerman Clones arrived at 7;55 P.M.) ; City Manager Childs; City Attorney Soth; Bonding Counsel Jerry Gilligan of Dorsey & Whitney; and Financial Consultant Richard Treptow of Springsted, Inc; and Rddevelopers John Arkell , Stephen Yurick, and J. Patrick Brinkman of Arkell Develop- ment; and Gary Tushie of Tushfe-Montgomery Architects. As he had indicated in his November 6th call for the informal discussion of Arkell 's proposal to construct 300 market rate rental units for persons over 55 instead of the same number of condominiums in the project, the Manager reiterated that the developers had also asked the City to consider the issuance of Housing Revenue as well as Tax Increment bonds to finance the new project. In his memorandum to the Council and Planning Commission the Manager had also indicated the Planning Commission would be required to consider changes in the original Development Concept Plan under • the P.U.D. Ordinance. In relation to these changes, the Planning Commissioners had also been provided with copies of the Special H.R.A. October 29th meeting where the changes had been discussed at great length and the Manager had included copies of newspapers articles related to tax-exempt bonding changes anticipated at the federal level which would seem to make action on the Kenzie project imperative before the first of the year. Mr. Childs gave a brief historical background of the project, including the problems Arkell had encountered getting construction financing for the Kenzington condominium project for Phase I, including META's involvement in that phase, which as far as he knew was not present for the final phases. The Manager also commented that in the last five years it had become almost impossible in the current market, to construct a market rate rental project without Housing Revenue bonds, which along with Tax Increment Bonds would have to be issued before January lst to avoid the changes which could make such development tools unavailable after that date. The Manager reiterated the H.R.A. members' concerns which had been recorded in the minutes of their October 29th special work session related to this project, including those related to the financial strength of the developers to complete the project; the ability of the market to absorb 300 additional units of rental housing; the risks the City would be taking with the proposed changes, and finally, the reaction of the community to the change in housing type. Arkell would be asking the City to issue the maximum amount of $24,000,000 in Housing Revenue Bonds for the project because that figure could only be adjusted downwards • after the approval is given, Mr. Childs said. He also indicated that although the changes in the P.U.D. or the City's issuance of Tax Increment Bonds were really not an issue for setting a hearing on the Housing Bonds, he perceived the developers