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City of Roseville - HRA Minutes for August 15, 2006Page 3 of 5 Member Maschka noted that based upon existing programming that there should be support for the $155,750 and if that is clearly what is needed then that is what should be requested. Motion: Member Kelsey moved, seconded by Member Elkins, to table the decision of the budget and levy request until the end of the agenda after further discussion regarding the Har Mar project and a Housing Improvement Area which may have a budget impact. Ayes: 6 Nays: 0 Motion carried. After agenda items were completed the HRA returned to further discussion regarding the preliminary budget and levy for 2007. Member Maschka suggested that the HRA bring a levy request forward that includes the $155,750 as recommended by the subcommittee plus $100,000 for the Har Mar renovation project with the support from the City Council for a total levy amount of $255,750. Member Bean requested explanation regarding the restricted funds and what those funds have been used for in the past. Director Bennett noted that in 2005, the HRA committed $200,000 from the restricted funds to the Senior Housing Regeneration Program. This reduced the available funds to $250,000 for additional projects. Member Elkins wanted clarification regarding using the suggested remaining funds for the Har Mar project. If the HRA supports using the balance of the funds for that project, will there be any other funds to support the Senior Housing Regeneration Program in the future. Director Bennett noted that once the $200,000 is spent, the HRA would need to seek levy or other outside funding to continue that program. Motion: Member Bean moved, seconded by Member Elkins, to adopt a preliminary 2007 Budget as presented with the addition of $100,000 in the Multi-Family rehab program. Ayes: 5 Nays: 0 Abstain: 1 (Member Kelsey due to being an employee of the company that owns Har Mar Apartments) Motion carried. Motion: Member Elkins moved, seconded by Member Scheunemann, to adopt Resolution #22 requesting a HRA levy in the amount of $255,750 for 2007 contingent upon the City Council’s support for $100,000 applied to the Har Mar renovation. Ayes: 5 Nays: 0 Abstain: 1 (Member Kelsey due to being an employee of the company that owns Har Mar Apartments) Motion carried. 9.Information and Reports Discuss Central Community Housing Trust’s Request for Public Funding Assistance for Har a. Mar Apartments Renovation (HF0039) Executive Director Bennett provided a brief summary of the financial request from Central Community Housing Trust (CCHT) for HRA assistance in the amount of $350,000 and the possibility of tax increment financing (TIF) for the complete renovation of the Har Mar Apartments in Roseville. HRA Attorney, Jim Casserly, provided an overview of the financial summary and tax increment projection for the project. He noted the complicated financing of the project with multiple layers of public funding. He noted that based upon their preliminary review, there is a need for up front funding for the renovation of the property and it appears that the $350,000 requested will help to close the gap. However, the TIF is needed to finance the new units proposed for the site rather than the renovation at this time. One suggestion is to create the TIF district and require that additional http://archive.ci.roseville.mn.us/council/hra/minutes/2006/hram081506.htm3/10/2008