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Regular City Council Meeting Monday, February 9, 2009 Page 15 tion through this transaction due to their negligible nature and minor impacts to the City's rights. Johnson moved, Ihlan seconded, authorizing the City Manager and Mayor to enter into a Stipulation Agreement regarding the Condemnation Proceedings for and by Metropolitan Council for property at 2750 Cleveland Avenue for the Roseville Park and Ride Transit Facility. Roll Call Ayes: Johnson; Ihlan; Pust; and Roe. Nays: None. 13. Business Items - Presentations/Discussions a. Receive Centennial Commons Update Mr. Trudgeon noted that Councilmember Ihlan had requested an update and he provided a brief review of the ongoing status of staff's collection of information regarding rents charged and when they were charged specific at Centennial Gar- dens Apartments, and the City's tax-exempt bond issue for conduit financing of this $12 million project; and related allegations of non-compliance with state stat- utes for tenants being overcharged due to miscalculations of the new owners. Mr. Trudgeon advised that, based on assertions of Mr. Jack Cann of the Housing Preservation Project, and potential violation of the project of state statute govern- ing the use of tax exempt bonds; staff was continuing their investigation of whether the project met minimum thresholds for providing affordable rents for at least 20% of the units. Mr. Trudgeon advised that, while the investigation was ongoing and not yet completed, it had been determined that the developer had failed to include utilities in their calculation of rents when determining fair market rent; and that upon review of Mr. Cann's assertions, the developer's attorney rec- ognized amistake was made in those calculations, and the developer had subse- quently reduces rents to come into compliance with state statutes and had reim- bursed tenants that were overcharged. Mr. Trudgeon advised that, as part of the compliance issue, if the project was found not to be in compliance, a penalty to the issuer of one-half of one percent, or $60,000. Mr. Trudgeon advised that staff was consulting with their bond coun- sel, as well as collecting additional information related to the rents charge and when they were charged. Mr. Trudgeon advised that staff was not ready at this time, to make a recommendation to the City Council regarding the penalty; and planned to bring the matter to the City Council at their March 9, 2009 meeting. Discussion included how the developer had made the mistake in calculations; whether the developer and/or their legal had changed their practices related to other clients; whether other violations had occurred with this developer on this or