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<br />r <br /> <br />_._--~''''''''''''''-'''~~-'''- -.p;;w.-"4!I\-O-"--.:..""'I <br /> <br />_i~""""-" <br /> <br />e <br /> <br />e <br /> <br />REQUEST FOR COUNCIl- ACTION <br /> <br />DATE: 7-25-88 <br />ITEM NO.: ~.~ <br /> <br />Manager R~viewed: <br /> <br />Agenda Section: <br />Hearings <br /> <br />Department Appro~al: <br /> <br />f;uuJ <br /> <br /> <br />Itom Do.crjttion: <br /> <br />y <br /> <br />Authorization to enter into development <br />agreement ~ith Can-American. <br /> <br />Tax increment is being proposed to write down the cost of land to <br />what is a proper mark9t value for mUlti-family development. with <br />respect to the housing and the park, Can-Am is paying <br />$4,508,460.00. Fair market housing value for the property would be <br />in the range of $3,500 dollars per unit or $1,123,500.00. Thus, a <br />reasonable tax increment request from the city would be in the range <br />of $3,364,960.00. Can-Am, was originally requeRti~q $2,950,599.00. <br />That resulted in an actual per unit cost of $4,853.00. The reason <br />that Can-Am can afford t~ pay more per unit was based on the fact <br />~hat it will be requesting higher rents and a joint ventur~ on the <br />retail component was going to create additional cash flow. However, <br />based on the desire to reduce retail as part of the project, staff <br />has ascertained that 3n a1ditional ~215,000 is a reasonable request. <br />This is bas~d on the net loss of potential revenue from the retail <br />and VFW that would have written down housing costs. The project is <br />now 10.2 years. <br /> <br />On July 11, 1988 the City Council continued this matter to July 25, <br />1988 becau~& the Roseville Review failed to properly publish the <br />public hearing noticpq conce~ning this matter. <br /> <br />COUNCIL ACTION REQUESTED: Motion to approve/deny authorization to <br />enter lnto development agreement with <br />Can-Ame\"ican. <br />