HRA MINUTES 02251981 - Laserfiche WebLink

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-2 - In approach one, it was attempted to capture the total demand for • 50,000 sq. ft. of office space and 150 condominium housing units. As was indicated in the lengthy tax, increment analysis, Mr. Brinda stated it was readily apparent that approach one was not even remotely feasible. It was shown there was a shortfall in debt service, the public costs exceed the city's net debt limit and in the final analysis removes too much assessed value from the district for the intensity of development returned. In approach two, the attempt was to reduce public costs by limiting development to the office and housing components. In this approach the offices would.be located on the northeasterly triangle of the study area, bounded by Highway 88, St. Anthony Boulevard and Kenzie Terrace. The housing would be located on the southwesterly triangle bounded by Wilson Street, Lowry Avenue and Kenzie Terrace and which is now predominantly single family housing. Again, the lengthy tax increment analysis was made and as indicated in the report, Mr. Brinda stated that while this approach lowered costs, the development with the highest assessed rate must be dropped and this erodes the increment to the point where it doesn't cover debt service and therefore this approach, too, is not feasible. Approach three , includes the office space identified in approach two and also housing which would be located across Kenzie Terrace in those parcels at which G&G Body Shop is located and also a vacant parcel of land. As in approach two, this does not address the forecast demand of 50,000 sq. ft. of retail space. The primary 10 lessor in this approach is it would save in public costs with a lessor acquisition cost, only limited relocation and removal of only limited present assessed value. Mr. Brinda stated this approach is feasible and also has the potential to utilize either the cash flow or provide for additional bonding ability to address some of the needs of the commercial forecast.. In response to a question from the Task Force, Mr. Brinda stated that the approach would still work if the office element were eliminated, i.e., only the 150 unit housing element was used. Considerable discussion from the Task Force ensued. Questions were raised on the feasibility of different combinations of uses and financing. Mr. Brinda noted that in all these cases, as in approaches one and two, the big problem lies in the cost of acquisition of the developed land. Discussion followed with Mr. Krier as to the next steps to be under- taken by the Task Force and the consultant. It was agreed the con- sultant should present redevelopment goals and objectives in con- sideration of the analyses made and also, if possible, some redevelopment alternatives. Included, in that context, should also be the feasibility of offering development incentives to the private sector.