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HomeMy WebLinkAbout01-07-91CITY OF LAKEVILLE HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 7, 1991 The meeting was called to order at 6:45 p.m. by Vice Chairman Harvey. Roll call was taken. Present: Commissioners Ruhmann, Zaun, Mulvihill, Harvey. Absent: Chair Sindt. Also present: B. Erickson, Executive Director; R. Knutson, City Attorney; M. Sobota, Community & Economic Development Director; C. Friedges, City Clerk. ITEK 2 The minutes of the December 3, 1990, Housing & Redevelopment Authority meeting were approved as presented. ITEK 3 Mr. Sobota presented the proposed modifications to the Southfork I Housing Development Project and Tax Increment Financing (TIF) Plan for TIF District No. 8. He explained the amendments proposed for two projects, which will benefit from the excess increment generated by the Southfork I TIF Project: 1) Dick & Ann Miller are proposing to build a 4,200 square foot professional building at the corner of 209th Street and Holyoke Avenue in downtown Lakeville. Up to $90,000 would be provided to the Millers to make the project feasible. Funds would be used for land write -down and clearance and soil corrections. He explained that although the project does not call for the creation of a new TIF district, approximately $14,000 in additional real estate taxes will be generated annually through completion of the project. 2) Excess increment will also be used to pay public costs, including the debt service on general obligation bonds (approximately $229,000), for the Meadows North TIF project that were issued by the City to have the site cleaned up and prepared for development. Mr. Sobota explained that some Meadows North residents expressed concern that this transaction will encourage a multi - family housing project. (The Meadows North TIF Project, which failed, consisted of 132 low and moderate income housing units). He presented a letter from the City's bond counsel, John Kirby, which explained that while the statutory language and the Amended Plans refer to low and moderate income housing, current laws define low to moderate income for a family of four at approximately $49,500. Mr. Kirby's letter further explained that the Amended Plans contemplate that at least some of the housing units, whether single family or multifamily, be affordable by people in this income range. Mr. Kirby's HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 7, 1991 PAGE 2 letter also states that it appears likely that any future development will be compatible with the broad requirements of the Amended Plans. Mr. Sobota stated that the Planning Commission approved the proposed Plan Amendments, recognizing they are consistent with the City's comprehensive plans. Commissioner Zaun pointed out that the modifications will not change the original Southfork I TIF plan in any way. Commissioner Sindt arrived at 6:52 p.m. Mr. Erickson explained that this transaction would take the pressure off the City to actively pursue development on the Meadows North site. He further explained that the staff is promoting a transitional use between any high density development on the Meadows North property and the existing single family homes. That buffer would consist of some single family housing and green space. 91.01 Motion was made by Zaun, seconded by Mulvihill to approve Resolution No. 91 -01 adopting Modification No. 2 to Southfork I Housing Development Project Plan, Interest Rate Reduction Program and Housing Tax Increment District No. 8 Financing Plan, and Adopting the Modified Plans and Program. Roll call was taken on the motion. Ayes, Zaun, Sindt, Mulvihill, Harvey, Ruhmann. ITEM 4 The HRA took up consideration of an agreement with the Executive Director which eliminates the salary provision of $60 per month, as the City Administrator's salary has been adjusted to include the responsibilities of Executive Director. 91.02 Motion was made by Sindt, seconded by Mulvihill to approve the Agreement employing Robert A. Erickson as the H.R.A. Executive Director. Roll call was taken on the motion. Ayes, Sindt, Mulvihill, Harvey, Ruhmann, Zaun. UNFINISHED BUSINESS None. HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 7, 1991 PAGE 3 NEW BUSINESS None. The meeting was adjourned at 6:58 p.m. Respectfully submitted, Lynette Mulvihill, Secretary i Pat Harvey, ice Chairman