CC_Minutes_2009_1207 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, December 07, 2009 Page 15 Councilmember Roe advised that he and Councilmember Pust anticipated Febru- ary or March of 2010 for a review of current ordinance related to presumed penal- ties, application of penalty tiers, and the need for alternatives between the lower and higher periods of suspension for certain violations. Councilmember Roe thanked staff for providing a history on past violations and frequencies; and expressed appreciation that so far in 2009, there had not been any reports of non compliance; providing him more interest in approving their re- newals. Klausing moved, Johnson seconded, approval of the renewal of liquor licenses for the 2010 calendar year, as detailed in the Request for Council Action dated De- cember 7, 2009. Roll Call Ayes: Johnson; Roe; Ihlan; Pust; and Klausing. Nays: None. b. Extend Memorandum of Understanding for LCDA and TBRA Grants and Approve Mortgage and Subordination and Disbursement Agreements for Si- enna Green Phase I LCDA/TBRA Loan Economic Development Associate Jamie Radel briefly reviewed those requests detailed in the Request for Council .Action dated December 7, 2009, and based on keeping the Memorandum of Understanding (MOU) in compliance with the ex- tensions received by AEON (Sienna Green Phase I) on their LCDA and TBRA Grants. Ms. Radel noted that Mr. John Rocker, representing Sienna Green was present to respond to questions of the City Council. Mayor Klausing questioned the Mortgage, Subordination and Disbursement Agreements; with Mr. Rocker providing an overview of the financial package and quasi-loan to facilitate maximizing the tax credits available to the project through the various funding sources. Mr. Rocker advised that, if grant dollars were re- ceived, the IRS would lower the amount of tax credits received, creating a new fi- nancial gap, and would be vied as income for the developer's tax-credit investor. Mr. Rocker noted that this was fairly standard procedure, and thanked the City for their patience in getting the first phase under construction. Mr. Rocker further noted that, based on recent legislation about reductions in the basis for tax credits, the Metropolitan Council was looking into how such financial packages could be better structured. Discussion included the City's subordinate position on the loan documents in terms of the City's financial position to the loan with the documents structured to avoid any risk to the City of Roseville; the City serving as a conduit between the Metropolitan Council and AEON; and application of the deferred interest rate to establish the loan documents for the draw process, with payout after 30 years.