HRA MINUTES 10081985 - Laserfiche WebLink

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-2 - is completed at which time their share of the costs would be about 12%. The redevelopers would reimburse the H.R.A. for the cost of the access when that hap- pens, Mr. Soth added. Motion by Commissioner Ranallo and seconded by Secretary/Treasurer Marks to adopt H.R.A. Resolution 1985-009. H.R.A. RESOLUTION 1985-009 RESOLUTION AUTHORIZING THE EIGHTH AMENDMENT TO THE REDEVELOPMENT CONTRACT Motion carried unanimously. Consideration was next given to the proposed resolution whichwould approve the Redevelopment and Tax Increment Plans for the Chandler Place_ senior rental apartment project to be erected by the St_ Anthony_Health_Center on the _vacant _lot it owns west of the health_center on the corner of 37th Avenue N.E. and Chandler Drive. Updated cash flows for the tax increment returns were submitted to the Commissioners. These showed the costs which would result if the City were to sell bonds to cover the estimated costs foracquisition, soil correction, and administration. Mr. Krier told the Commissioners this investment would help defray higher than anti- cipated soil corrections costs and would bring the costs of the project down at the same time the City would receive a good return on its investment with the tax increment receipts paying the bonds in 10 years and with the City also hold- ing a second mortgage on the property in the amount of 5700,000, to be repaid upon sale or beginning after 10 years. • A bonding attorney from Dorsey & Whitney, the H.R.A. Attorney, had raised some un- foreseen questions about the legality of the new proposal which the Planning Consult- ant questioned saying he perceived that if that opinion were accurate, most of the redevelopment projects he is involved in throughout the metropolitan area, and, indeed those all over the state, "would be in real trouble". The Executive Director indicated he was looking for the Commission reaction to a proposal from the developer for the City to use $300,000 in reserve funds to pay for part of the b_o_nd reserve_.with the loan to be_repaid__i n_.1991-.92 by tax increment revenues. --"- -" Reservations about providing safeguards for the City's investments as well -.as concerns about the lack of liquidity for the next five or six years were expressed by all the Commissioners—Commissioners_ ors Ranallo and Makowske were apprehensive about tying up the City's reserves for that length of time in the face of diminish- ing aid from state and federal sources as well as the trend towards decreased liquor revenues nationwide. (Mr. Krier told the Commissioners they would have to weigh their decision between the possibility the City might need reserve funds, which would not be available, and the fact that the City would actually be recaptur- ing its investment twice from the developers; first, from the tax increment revenues, and then from any profit on the sale of the property in the future. The latter was true, the Planning Consultant said, because the proposal had been written on the same payback principal followed by Minneapolis, Richfield, Eden Prairie, and other municipalities, related to similar investments, that, if a community experiences risk in investing in a project, its taxpayers deserve to share in the profits when • the properties they have invested in are sold.