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.� :� fl � �: r � �a 1 �� 11 � �� 1� 1 •� 7� 7 �, Regular City Council Meeting — DRAFT Minutes Monday, Apri123,2007 Page 6 of this housing facility. Mr. Miller noted that the applicant wished to address the City Council with additional information. The applicant, Mr. Terry McMillis, noted that he represented his part- ner Mike Swenson and their development partnership entitled, Gar- dens East Limited Partnership. Mr. McMillis advised Councilm�in- bers that their adoption of the proposed ordinance, as prepared by the City's Bond Counsel, Briggs and Morgan, would allow the partner- ship to seek sound financing Far the proposed proj ect, and require a definite commitment by their partnership of $50,000 to secure the purchase agreement for the property prior to the Public Hearing being held. Mr. McMillis asked that the City Council address any potential misgivings they rn��' have prior to that financial commitment, and ex- pressed his willingness to address any questions or concerns of the City Council at this time. �� Mr. McMillis advised that the property had been constructed in 1966, :� and currently provided an affordable housing option in the City of I� Roseville, housing retired a�zd/oz- young working people. Mr. McMil- 2� lis opined that the property represented a decent, safe housing option, � 1 but advised that it needed updating and that the developers anticipated 2� expending $980,000 total in renovations, at approximately $10,000 �.tii per unit. �� �� Councilmember Ihlan questioned the intent of the developer and guar- �� antee to the City that the project would remain affordable housing, if �� the City were to grant issuing revenue bonds. �� �� �� 31 �� �� 3� 3� �� �� 3� 3� Mr. McMillis advised that the federal government housing and tax policy required strict land use restrictions for bond financing, and ad- herence to affordable housing based on 30% of a tenant's income; with additional documentation provided by the City's Bond Counsel and the developer prior to actual issuance, and requiring City Council approvaL Mr. McMillis noted that the land use stays with the land and would survive any sale of the property, and that under Internal Revenue Service (IRS) code, if the developer sold the property before 15 years, they would have to post a bond, and provided built-in safe- guards.