HRA MINUTES 10291985 - Laserfiche WebLink

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y -2- Chairman Sundland observed that Arkell had been reluctant to "walk away" from the • Kenzington project with the $400,000 Letter of Credit pending, which was probably better for the City than the deal offered by Knutson who could have dropped the project for only $50,000. • • The Attorney indicated the developers had claimed to have made arrangements whereby the January 1st deadline could be achieved. Mr. Gilligan speculated the developers had made some arrangement with a financial institution to "park" the bonds temporarily with them for six months or a year. However, before Arkell could do that, he said, the City would have to hold a, public hearing.(,with 15 days notice) on their housing program, after which the project would have to be submitted to MHFA, who has 30 days to reject it. The responsibility for putting together a bond program in time rests with Arkell, the Manager added. He also indicated he perceived the Planning Commission would only.be involved in the terms of the P.U.D. and not the bonds, and then, the only,initial change would be needed for the Development Con- cept Plan, which is not a detailed or final plan. Mr. Childs also informed the. . Commissioners that ifithe hearing were delayed until after the bonds were issued, there would have to be a strong H:R.A. commitment to proceed. The perception was that, if the project was constructed to serve only renters over 55, the cash flow figures mightindicate a need for fewer units and possible reduction of the height of the buil—dings, which had been a point of opposition to the project from some Commission members since its inception, however, this would depend on the revised cash flows. Chairman Sundland said he had found in con- versings,with senior residents, .that many of them were looking for greater flexibility in options for where they would reside, perceiving they would be able to live on the interest from the sale of existing residences, anywhere they chose. He said he believed the developers had also recognized those signs of the time and proposed rental rather than additional condominiums. Secretary/Treasurer Marks indicated he would like to see the units built in such a manner that they could easily be converted back to condos if the market changed. Mr. Gilligan said bond restrictions would prevent conversion before tenyears. The Executive Director said he had discussed the changes with Commissioner Ranallo before the meeting and the Commissioner's greatest concern was that, even discussing the issuance of bonds for this phase, might have an adverse impact on Kenzington sales. Commissioner Makowske indicated she perceived the impact might be just the opposite, when prospective Kenzington buyers perceive something is going to be done, at last, to improve the conditions across the street. Secretary/Treasurer Marks indicated he had always figured the development of the last phases of the project would be at least three or four years away and his concern now was how fast the market could absorb this new use, and whether the demographics had changed enough to support moving faster on this phase. Mr. Soth pointed out that the contract with the City by December 31st that the property and he said, Arkell is also required in Janu developers intend to do about the_$400,000 L Attorney indicated further, that the City is what happens relate` o extensions, defaults the developers required them to notify for this project should be acquired, on The