CCP 06-15-1992 - Laserfiche WebLink

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612-334-33<:::2 CASSERL '/r'"1C)LZAHHFL 1 r., I ':::::':.L '::;I r"l::::.i,_I/ I:::...I;~. I ,,-, ( 0:::...'_' -. ..........- . 4. project Manager. The City has an interest in how the Project will be managed since it will be a seniors only project. There should be additional discussion with the Developer on the qualifications of a project manager. S , Future Project use. The City must understand that the project will probably only provide low income rents during the period required for the use of tax credits, the tax exempt bonds and the lower real estate taxes. We must assume that at the end of the qualification periods, the Project would then become a market rate project. Part of the problem of using real estate taxes to subsidize rents is that you continue to need those real estate taxes for subsidy unless other programs become available. However, if the Project is well constructed and well managed, then the City is getting an attractive asset which provides affordable housing for 15 to 20 years to a segment of the population which needs housing options, DEVELOPER REOUEST . With regard to the financial considerations of the Project, the Developer is making two requests: 1 . That the City will authorize the issuance of tax exempt bonds, 2. That the City will establish a tax increment district, . approve a redevelopment contract, issue a limited revenue note (or in the alternative establish an interest reduction program which has the same effect) and pledge the tax increment accordingly. CONCLUSION The combination of subsidies allows the Cottage concept to work successfully, If the City so chooses it could give concept approval to the Developer's request assuming satisfactory solutions to the municipal concerns. With that concept approval . the Develop~r could proceed to request an allocation from the 4