HRA MINUTES 08261986 - Laserfiche WebLink

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.-�M.ti -2- Commissioner Ranallo said he perceived from the Federal Register which had just come out that the tax reform legislation would certainly be passed, and with the way the limited partnerships were being wiped out, he had concluded there was no way the senior rental project, as approved in December, could be developed as Mr. Arkell had indicated. he intended. Vice Chair Enrooth agreed that there was little likelihood the project which had been approved by the H.R.A. "would get off the ground" without limited partnerships and he asked what the City could do regarding the existing businesses in the shopping center some of which he assumed are staying in that location only because they hope to get relocation money to make a move. The Vice Chair pointed out that the City itself had spent a large sum in architectural fees expecting to move its own liquor warehouse to the Stonehouse, on "a contingency which at best is very questionable at this time," and he suggested the time might have come for the City to look at other renovative alternatives for that economically depressed area. There was general concurrence that planning in that regard would have to be initiated soon, although Mr. Childs said, he perceived the new tax legislation might also have provided tax credits for low income senior rental under which many, seniors- -.-living,--on the interest from their home equities might qualify for the approximately $800 rents in the Arkell development, a•possibility Brighton Development was also exploring at this time for some of their projects around the Twin Cities. Progress in the selling of those units was explored briefly before the H.R.A. members returned to the possibility of Arkell defaulting on their project. •The Executive Director commented that he perceived no one could say the H.R.A. had not given reasonable extensions and allowed changes which would help the developers to construct the project. Mr. Childs said he perceived the H.R.A. could use the $400,000 in default penalty it would receive.from Arkell to entice another developer to provide some other type of project, maybe even redoing the commercial, which studies years ago had indicated might work for a portion of the redevelopment project. The Secretary/Treasurer commented that he considered the agreement the H.R.A. had with Arkell had been based on performance and not on what might happen to the tax laws. There was a short report by Mr. Childs on how units in the Kenzington and Village Townhomes were selling before adjournment. Motion by Commissioner Ranallo and seconded by Vice Chair Enrooth to adjourn the St. Anthony Housing and Redevelopment Authority at 9:20 P.M. Motion carried unanimously. 40 Respectfully submitted, Helen Crowe, Secretary