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-2 - scheduled to be heard at 8:30 P.M. that evening, as stated in the notice of the • public hearing included in the K.R.A. agenda packet. Before the hearing was formally opened, Mrs. Post described the proposed senior housing project which she said would provide 119 units of rental housing as a viable option for persons who have a health frailty requiring only a minimum of nursing care which would be provided by the existing Health Center to which the proposed building would be connected. The tax increment_ financing had become a necessity_,. Mrs. Post said, when soil borings had 'iridicaied the poor soil cond t on_on the proposed con- struction site located on the corner of 37th Avenue N.E. and Chandler Drive, but she perceived there would be a great benefit to the community to have this type of housinq provided in connection with the --Health Mrs. Post indicated the five story building which would house these "frail elderly" would be constructed in such a manner as to make the St. Anthony citizens proud to have it in their community. At the same time the project would _p.rov.de_ar additional tax base for the City, it would also make available affordable housing for moderate income elderly and could be expected to result in "turn -around sale of housing" which would free up homes for young families for the City. The Health Center administrator said there is a great interest nationwide for provid- ing a minimum of care for some elderly who do not require nursing home care, at a cost half of what would be charged if they had to go into nursing homes, and Mrs. Post said she perceived St. Anthony would be providing leandership in that movement if they supported this type of service to their own elderly at this time. She also mentioned that making rental units available for these persons would be providing a very attractive option for persons who might otherwise have to come up with a large • investment in an endowment which they could lose in the long run. The administrator reported the project had already gotten Rice Creek Watershed District approval for the holding pond which she perceived would provide an attractive place to walk around—for the -Chandler Place residents. The public hearing was opened at 8:30 P.M. The Executive Director indicated that copies of the plan for the project, which would become Tax Increment District #3, had been forwarded to the St. Anthony—School District and Ramsey County for their comments and Mr.—Childs recommended tabling action on the redevelopment and financing plans until their response within the next month. He said the H.R.A. Planning Consultant, Dick Krier, had written the tax increment plan, and had been expected to attend the hearing, although the plan was very similar to those written for the other tax increment districts in the City. The Executive Director reiterated that the Health Center had deemed tax increment financing would be necessary to make the project economically feasible when soil borings had revealed it would be necessary to dig 35 feet with open excavation for the project, a con- dition which the City had also encountered in the same area when they started digging for the new watermain in conjunction with the rebuilding of County Road D (37th Avenue N.E.).. He also noted that the payback period on this project would only be about seven years as compared to 20 years plus for the Kenzington and _f2— ears 'or so for the Village Homes townhomes project. He said the total estimated costs for acquisition, soil correction and administration would be $792,000 with actual costs depending on negotiated costs, interest rates, actual relocation claims or sale • price, with soil correction costs expected to surpass those in the Redevelopment Plan. However, the project could be expected to generate $240,000 annually in. -new taxes which the City, County and School District would split up, when the bonds have been paid off, Mr. Childs added.