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HomeMy WebLinkAbout01-04-88CITY OF LAKEVILLE HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 4, 1988 88.1 The meeting was called to order at 6:30 p.m. by Chairman Pat Harvey. Roll call was taken. Present: Commissioners Nelson, Sindt, Enright, Zaun, and Harvey. Also present: Roger Knutson, City Attorney; Patrick McGarvey, Executive Director; Darrell Schneider, Consulting City Engineer; James Robinette, Community Development Director. Motion was made by Zaun, seconded by Enright to approve the minutes of the December 7, 1987, H.R.A. meeting. Roll call was taken on the motion. Ayes, Nelson, Zaun, Enright, Sindt, Harvey. At this time, Mr. Kent Ritchie, an attorney representing the Healey Ramme Company, and Mr. Thomas Healey presented their proposal for a tax increment financing plan that would result in lesser rent to be paid by tenants of the 200 unit SouthFork Village Apartment project. Mr. Healey explained how the state law governs the income limits of tenants they would be eligible to rent to at certain periods of time who would qualify to receive the reduced rent. Mr. Zaun asked about the style for the build- ings, and Mr. Healey presented architect renderings and samples of building materials to show the intent of how the buildings would look from the exterior when completed. He indicated that the project had been changed to include 50 one bedroom units, 100 two bedroom units and 50 three bedroom units. He also indicated that the land had been increased to include 350 mature trees to be planted on the site compared to less than 200 that were envisioned by the previous developer of the project. He also showed site and landscaping plans for the project. Commissioner Harvey questioned Mr. Healey about provisions in the agreement with the City concerning who would get paid first if the project is sold at a future date. 88.2 Motion was made by Sindt, seconded 4 on the HRA agenda until after the Mr. Ritchie and Mr. Healey to meet legal matters in the agreement. Roll call was taken on the motion. Harvey, Nelson. by Zaun to continue items 3 and HRA took up item #5 to allow with the City Attorney on some Ayes, Zaun, Enright, Sindt, At this time Mr. James Emond and Mr. James Allen presented a concept plan for development of the property south of County Road 64 and east of Jacquard Avenue into a single family home subdivi- sion with houses in the $85,000 to $95,000 price range, including the 3.3 acre City owned site. The gentlemen asked the Commission whether or not they would support the use of tax increment financing to help clean up the rest of the area and involve buying some existing dwelling units and incorporate the area into the new plat. Commissioner Nelson indicated that it would be OK with him if the dollars are worked out satisfactorily. Commissioner Zaun indicated concern with how the project would effect the school district as for potential tax loss and also indicated that this type of development may be needed in the Orchard Lake area in the small substandard lot area around that lake. Commissioner Enright also expressed concerns about possibly too many city dollars being invested. Commissioner Sindt indicated she would like to see the area cleaned up, and Commissioner Harvey also indicated he would also like to see the area cleaned up and consolidated into a new plat. 88.3 Motion was made by Zaun, seconded by Sindt to have a staff report on this matter in the future when the effect of the current state law concerning tax increment on homesteaded property is better defined and known. Roll call was taken on the motion. Ayes, Enright, Sindt, Harvey, Nelson, Zaun. 88.4 Motion was made by Nelson, seconded by Sindt to continue the HRA meeting until after the conclusion of the City Council meeting this evening. Roll call was taken on the motion. Ayes, Sindt, Harvey, Nelson, Zaun, Enright. Time: 7:40 p.m. At 9:00 p.m. Chairman Harvey reconvened the HRA meeting. At this time, the developer, Mr. Healey, explained that if and when the SouthFork Village Apartment project is sold in the future, the first obligation is to the first mortgage holder plus other improvement loans that may be taken out on the project in the future. The next in line for payment is the City of Lake- ville. The next in line after the City is the developer for payment of the $1.2 million initial equity plus 8% simple inter- est. After that, any additional equity would be shared between the City and developer according to state law formula. 88.5 Motion was made by Zaun, seconded by Enright to adopt Resolution No. 88 -1 establishing an interest rate reduction program and a housing development program plan and tax increment financing district No. 8, SouthFork Village Apartment project. 2 Roll call was taken on the motion. Ayes, Harvey, Nelson, Zaun, Enright, Sindt. 88.6 Motion was made by Zaun, seconded by Nelson to approve the loan agreement and authorize the chairman and executive director to sign it with the Healey Ramme Company for the SouthFork Village apartment project. Roll call was taken on the motion. Ayes, Nelson, Zaun, Enright, Sindt, Harvey. 88.7 Motion was made by Sindt, seconded by Enright to adjourn the H.R.A. meeting. Roll call was taken on the motion. Ayes, Zaun, Enright, Sindt, Harvey, Nelson. Time: 9:16 p.m. Respectfully submitted, Patrick E. McGarvey Executive Director I at Harvey, Chairman 3