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Regular City Council Meeting Monday, June 08, 2009 Page 16 Councilmember Ihlan noted previous discussions related to this project and policy issues concerning affordable housing, the City's main reason for considering ap- proval of this request. Councilmember Ihlan noted that the draft PUD Agreement included no discussion of affordability; relocation of current tenants; and opined that incorporation of those specifics within the PUD Agreement provided an op- portunity to link those issues and assure that the City achieved some of those goals, and compliance and future enforcement. Councilmember Pust noted discussions and presentations during HRA meetings, on those specific issues; and improvements in affordability of the property in ad- dition to Section 8 vouchers, not previously available. Applicant Representative, John Rocker, Senior Project Manager for AEON Mr. Rocker advised that 13 renters were scheduled to be relocated as their units were deemed "over occupied," and would be relocated to comparable housing units, in accordance with regulations determined by Housing and Urban Devel- opment (HUD), with their moving expenses paid in full, in addition to payment in any rent differentials for up to 42 months, representing a total outlay to AEON of approximately $17,000. Mr. Rocker advised that those tenants wishing to remain during renovation could do so, and it had been agreed that, while rents for new units will be higher than those current rents, AEON had agreed to leave those ex- isting tenant rents at their current rate, and that after their first year, they would experience annual rent adjustments, similar to those in the market at between 3- 5%. Mr. Rocker advised that a financial consultant had been hired to ensure AEON's compliance with those financing requirements and rates. Councilmember Ihlan opined that she would prefer to have those requirements stipulated and documented in the agreement. City Manager Malinen arrived at this time, approximately 8:22 p.m.; and remained in the audi- ence. Acting Mayor Roe sought terms for those tenants remaining in the complex dur- ing the construction process and AEON's terms for dealing with those tenants. Mr. Rocker advised that 19 households would need to be temporarily relocated elsewhere in the complex during renovations to their existing building; and those provisions under HUD relocation requirements stipulated that the tenants be relo- cated in both instances at the expense of AEON. Mr. Rocker advised that those impacted tenants had been duly notices in writing by AEON, with all details and provisions for the process stipulated in those notices. Councilmember Pust noted that, while not contractual, the provisions had been documented in writing; and pointed out language of page 3 of 7 of the Develop- ment Agreement, that the Developer would comply with all City, State and Fed-