2007-10-16_Agenda - Laserfiche WebLink

Home

Member Millasovich pointed out that programs that serve middle income residents create incentives for young families to stay in the community which is a go al of the HRA. The board had a brief discussion of the current foreclosure crisis that is affecting the real estate market. Motion : Member Pust moved, seconded by Member Masc hka, to table making modifications to the Roseville Owner Occupied Loan Program eligibility cri teria to households with incomes at or below 120% of the current area median income by family size and request that family size data be collected in the loan application. Ayes: 6 Nays: 0 Motion carried. 9. Information Reports & Other Business (Verbal Reports by Staff and Board Members): a. Update - HRA Levy Request Ms. Bennett explained that Chair Majerus, Interim Community Development Director Mike Darrow and herself presented the HRA request for the maximum levy to the City Council at their September 10 meeting. Ms. Bennett indicated that the Council had a positive discussion at that meeting about the need for the HRA and the importance of HRA programs. Ms. Bennett noted that the City Council approved a preliminary HRA levy of $350,000. Although this is below the maximum request of $605,000, it still allows for funding to the Har Mar Apartments pr oject, funding for existing HRA programs and some additional new funding. Ms. Bennett stressed that the City Council decided on the preliminary HRA levy in light of the fact that the HRA will undergo a strategic evaluation of its programs and create a 5-year financial plan in order to best utilize its budget and more fully realize its mission. Chair Majerus added that the City Council was very supportive of the HRA’s activities and stressed that the board must now do its part by creating a 5-year st rategic plan. Member Pust reminded the board that the preliminary HRA levy approved by the Council may be reduced before it is finalized in December, therefore the HRA would benefit from starting to wo rk on a plan yet this year to demonstrate its commitment to moving forward with a strategic evaluation process. b. Update - Status of Housing Improvement Area Funding - Westwood Village I Ms. Bennett explained that Bremer Bank had provided a term letter to the City’s Bond Council for review. The City’s Bond Council determined that this project is not eligible for tax-exempt status as it doesn’t involve public improvements and therefore the original term letter does not apply. Ms. Bennett noted that the next step in the process would be fo r Finance Director Chris Miller to obtain from Bremer Bank a new letter detailing the terms of a loan from the bank to the City at a taxable rate as well as a letter detailing the terms of a loan made directly from th e bank to Westwood Village I. Ms. Bennett explained that once those letters were received, the matter w ould be brought back to the City Council with the following options for their consideration: the City/HRA could provide a tax exempt bond either from existing reserves or new bonding, the bank could provide a taxable loan to the city or, lastly, the bank could provide a loan directly to Westwood Village I. Ms. Bennett noted that the last option would likely be cost-prohibitive for the residents of Westwood Village I. Member Pust suggested that the matter come back before the HRA so the board could forward a recommendation to the City Council. Member Maschka i nquired about the denial of tax exempt status for the project. Ms. Bennett noted that, as a public/private partnership, the tax exempt status would not apply.