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Regular City Council Meeting Monday, September 13, 2010 Page 9 guage changes, even though staff understood the purpose of the hardship lan- guage; and opined that the changes represented instances with minor technicali- ties. Mayor Klausing further opined that the proposed changes were not substan- tive, but brought statutory language in line with practice and simplified the process. Mayor Klausing opined that the often-expressed concern of the public was in making government processes more complicated and costlier, forcing ap- plicants to realize unnecessary costs, including that of staff time. Councilmember Roe spoke in support of the motion, opining that the revisions would treat land use issues consistently, and was not making them easier to re- ceive approval. Councilmember Roe noted that the pending subdivision applica- tions currently in the review process would still go to the City Council for ap- proval as with current processes, and that the practice would still apply with staff approval for those items meeting the applicable criteria. Roll Call Ayes: Roe; Johnson; Pust; and Klausing. Nays: Ihlan. Motion Carried. b. Consider a Resolution to approve Modification to the Development Program for Municipal Development District No. 1 and to establish Tax Increment Fi- nancing District NO. 19 (Applewood Pointe) within Development District No. 1. Councilmember Ihlan questioned if the developers had applied for any other pub- lic subsidies or other government support programs, noting that since this was a HUD project, it appeared that other monies were coming toward this project, and questioned their source and the amount. Ms. Radel clarified that HUD was a mortgage financing tool used by the develop- er; and that she was unaware of any other type of governmental assistance. Councilmember Ihlan clarified that HUD financing allowed purchases to purchase units more easily, but served as a federal benefit source for the developer. Mr. Carey clarified that this Applewood project, as with all their other projects, had a Master Mortgage guaranteed by HUD, but that the loan was not directly from HUD but guaranteed by them, allowing for more advantageous interest rates for resident participation and providing significant protections for residents, re- quiring the developer's establishment of sufficient reserves .and adhering to cer- tain operating practices. Mr. Carey advised that residents make mortgage pay- ments directly to the bank and that those interest rates were currently good and residents received all the benefits of a HUD interest rate. Mr. Carey noted that for the project to be HUD-qualified, it required the pre-sale of 60% of the units.