PL MINUTES 11031986 - Laserfiche WebLink

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-6- • 1 - pointed out that existing commercial in the same area was having trouble 2 making ends meet. 3 4 Mr. Arkell responded to the question concerning the City's financial stake 5 in the new project by saying the City had only lent its bonding authority 6 to the developer to enable them to seek $23,000,000 in Industrial Redevelbpment 7 bonds which the developer and not the City would be responsible for paying 8 off. 9 10 The developer addressed the Commission members, saying he presumed they shared 11 the reservations the Council and the people present that evening seemed to 12 have about renting the proposed building to anyone else except seniors which 13 had prompted him to withdraw his request regarding occupancy and to return 14 to the senior rental only. Mr. Arkell said he had wanted all along to do 15 a senior project but "if the market isn't there, I hope I 'll be able to come 16 back to the City". Mr. Childs reiterated that any change would again require 17 a public hearing before both the Commission and Council , which would be fully 18 advertised and a notice sent to Alderman Dziedzic's office, as had been done 19 for this hearing. 20 21 Mr. Yurick told Mark Kozlak who had asked about the market analysis the developers 22 had used for the senior project that McComb had done "a very positive market 23 study on the senior project for the bonding in November and December". Mr. 24 Childs indicated copies of the study were available at City Hall . 25 26 The Manager said the developer had indicated he would be redesigning the • 27 building for senior rental and would add another elevator to each building 28 to accommodate that- occupancy. In response to questions from the floor, 29 those present were told that: 30 31 - there would only be four living levels in each building; 32 - when the project is advertised, Arkell anticipates the efforts to let the 33 public know about the project would match the high exposure given the Kenzington 34 on both WCCO and in the newspapers throughout the metropolitan area. 35 36 Mr. Arkell concluded his statements by telling those present the question 38 Pat Schroeder had asked him "if you don't think the senior market is here, why are you proceeding with a senior project" was one the developers would 39 be asking themselves in the coming month. He said the question he had asked 40 earlier that evening had indicated that only three of the seniors present 41 that evening wouldbe interested in moving into these buildings and that 42 4 3 would not be enough to fill 300 units. He offered to let the Commissioners 44 see the market study which had indicated the senior market was just not there. The redeveloper said if the project proceeds, the construction would be phased 45 4 5 to start 150 units in June 1987 and the next 150 the following spring. He 4 7 said it takes from 12 to 18 months to erect a building so occupancy would 4 8 not be until 1988. Mr. Arkell said his agreement with the City requires 49 him to generate a certain amount of tax monies for the City and although 50 his firm has never built minimum sized units before, they would be looking 5 1 at that now because of the cost of building those units. It would also be 5 2 very expensive for the developer to go from three to four floors and although • 5 3 underground parking is quite costly, the size of the site mandates how many 54 spaces would have to be provided inside. 55