HRA MINUTES 10291985 - Laserfiche WebLink

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-4 - The Executive Director then summed up what he perceived had been the general sense • of the H.R.A. that evening, which he would be conveying to the developers. He said he would tell Arkell the H.R.A. would be willing to entertain a proposal for Housing Reven_ue_Bo.nds for rental rather than condominiums for Phase II and III of the Kenzie Terrace Redevelopment project, on the condition they are prov5d0' A financial statement from Arkell which would assure that when the attempt is made to place the bonds after "parking" them for some months, they could be placed. 2. A market analysis which indicates this project could be absorbed by the market in a feasible time frame. 3. The preliminary resolution and housing bond program be submitted in time for a public hearing on the bond plan. 4. A joint meeting of the Council and H.R.A. would be held to discuss a new P.U.D. Concept Development Plan, with drawings and sketches to be provided by the developers to demonstrate the proposed construction as it would relate to height of buildings and number of units and conversion of the project from condominiums to rental. Mr. Childs said he would be requesting the Springsted Company to run revised cash flow figures for the final phases of the Kenzie Terrace project to ascertain before the meeting with the developers, just how many units would be needed to make the project economically feasible. • Commissioner.;Enrooth asked..counse•l whether;there was anything further the City could do to find out just how solvent and financially stable the developer was. Mr. Soth said that, in addition to a financial statement, the H.R.A. could require verification that the developers are financially capable of developing this project. He also gave his perceptions regarding what the roler•bfi;META might be in relation to the completion of the project. Mr. Childs indicated he would be conveying the requirement for expanding the financial analysis to Mr. Arkell. In regard to other City developments, the Executive Director reported that a fire had completely destroyed the old gas station across from the new townhome project on Old Highway 8. He said that entire corner had been cleared and he was hoping the property would be developed for something else besides another gas station. ThFe Executive Director then informed the H.R.A. members that the groundbreaking ceremonies for the Chandler Place project were scheduled for Wednesday, November 6th, at whatever time was best for them. It was agreed that 2:00 P.M. after the Kiwanis meeting that noon would be preferable. FAnother groundbreaking, for the Walker on Kenzie project, was acheduled for 3:00 P.M., November 15th, Mr. Childs said (since the meeting this date was changed to November 18th). The Executive Director continued his report by saying the staff was satisfied with the Redevelopment Agreement they had negotiated with the Chandler Place developers but had not gotten the Health Center reaction yet. He said the agreement included is almost everything the H.R.A. had indicated they wanted at the last meeting, including the fact that the $700,000 for the bond reserve would be funded from tax increment revenues, requiring no bonds and the City would still hold a second mortgage for $700,000 at 3% on the property, which the Attorney said, would be payable at the sale of the property or 20 years.