2006-09-16_Agenda - Laserfiche WebLink

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4 Motion : Member Elkins moved, sec onded by Member Scheunemann, to adopt Resolution #22 requesting a HRA levy in the amount of $255,750 for 2007 contin gent upon the City Council’s support for $100,000 applie d to the Har Mar renovation . Ayes: 5 Nays: 0 Abstain: 1, Member Kelsey due to being an employee of the company that owns Har Mar Apartments. Motion carried. 9. Information, Reports and Other Business a. Discuss Central Community Housing Trust’s Request for Public Funding Assistance for Har Ma r Apartments Renovation (HF0039) Executive Director Bennett provided a brief summary of the financial request from Central Community Housing Trust (CCHT) for HRA assistance in the amount of $350,000 and the possibility of tax increment financing (TIF) for the complete renovation of the Har Mar Apartments in Roseville. HRA A ttorney, Jim Casserly, provided an overview of the financial summary and tax increment projection for the project. He noted the complicated financing of the project with multiple layers of public funding. He noted that based upon their preliminary review, there is a need for up front funding for the renovation of the property and it appears that the $350,000 requested will help to close the gap. However, the TIF is needed to finance the new units proposed for the site rather than the re novation at this time. One suggestion is to create the TIF district and require that additional incr ement generated from the project be applied to payback the HRA for their funding. However, if all the increment is needed for the new units proposed for the site, there is no guaranteeing that the requested funding will be reimbursed. Mr. Casserly and CCHT continue to review financing options including unit valuation and mix for the project. Member Maschka requested clarification on the grant funds requested from the HRA. ($350,000 up front for the renovation and $250,000 for the construction of new units in 2008). Member Kelsey requested the need to review a sources and uses so that the HRA can see what amount of renovation CCHT is proposing to put into the buildings and what sources of funding they are using. She would like to see the capital costs outlined. She noted that the HRA can not effectively do their evaluation without a sources and uses. Member Maschka requested additional information regarding unit valuation which is a different evaluation when comparing rental and for sale units. Member Kelsey also requested to have the renovation of existing buildings split out from the construction of the new units. Member Kelsey asked what is needed from the HRA in 2007? ($350,000). Member Bean noted that if there is only $250,000 in available HRA funds to apply to the project where would the additional funding come from? Bennett noted that the HRA could request additional levy funds to cover that gap.