1997 CC Minutes - Laserfiche WebLink

Home Browse Search

~ property?" Mr. March replied he had been in contact with Carolyn Drude, Ehlers and Associates, and they are looking at some options. Mr. March recommended using TI.F. dollars. The 1996 TI.F. report was sent but has not been reviewed. Additionally, when the audit comes back the City will have some concrete T.I.F. figures. Ms. Gaustad added, $11,500 ofCDBG funds are available for senior housing. Mr. March voiced concern ofthe pending tax bill at the legislator to abolish or limit TI.F. funds and tax exempt status for senior housing. Councilmember Helmbrecht asked, "Would these be ear marked funds?" Mr. March wasn't sure, but TIF district 1, 2 and 3 are to be used for the water tower but can be issued for other improvements. Mayor Wilharber asked about the number of rooms desired from the market study results. Councilmember Brenner replied the main request was for one bedroom with a den. Mayor Wilharber asked, "Can the city be financially responsible for unoccupied units?" Mr. March replied, yes. Mr. March explained ifthe project is complete in 1997, there will be a $25,648 cash flow after financing, with a shortage of $6,000 in 1998 to 2006 ending with a shortage of$I,218. Mayor Wilharber asked, "Does the City want to get involved with rental property?" Mr. Hellings explained the city would assume all the responsibility of a land owner with rental property. Mayor Wilharber asked for a consensus of the Council. Councilmember Brenner was in favor of purchasing all the property but was not in favor of free rent for Ms. Barett. Councilmember Brenner spoke with Councilmember Powers-Rasmussen on the issue prior to the meeting. Councilmember Rasmussen was not in favor of free rent either but may entertain a rent rebate or something. Councilmember Helmbrecht is not in favor of free rent or spending $20,000 per acre. Councilmember Buckbee was against free rent and 1.1 million was too expensive. Councilmember Helmbrecht asked, "Has there been a Realtors opinion on an appraisal?" Councilmember Brenner commented Anoka County tax records indicate the home is valued at $44,000 and the land is valued at $31,000. Mayor Wilharber commented the land value will be affected by the sale of surrounding properties. Mayor Wilharber mentioned the many advantages of the selected senior housing location; the water is in back of the land, sewer is available in the front, it's a good location, high ground and the single structure. Mayor Wilharber would rather work out something without free rent or rent credit. Mrs. Lorraine Neumann, 1989 South Robin Lane, agreed Ms. Barret should not live in a senior housing unit rent free. Councilmember Brenner asked if the Council is ready to look at a time table and a counter offer on the Barett's proposal. Mayor Wilharber mentioned the market study indicated there shouldn't be a problem renting at the rent ranges provided. Mayor Wilharber agreed with the $120,000. and suggested Ms. Barett live in her home and the city allow her first option to rent a unit. 2