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<br />Councilmember Look asked how much the rent is typically increased and whether property taxes <br />are paid on this property. <br /> <br />Ms. Skepper stated that usually the rent is increased by 3% to help cover utility and insurance <br />costs. She stated that they make payments in lieu of property taxes, based on rents, minus utility <br />costs. <br /> <br />City Administrator Ulrich asked how the rents compared to the overall market. <br /> <br />Ms. Skepper stated that currently they are about $75 below the market. <br /> <br />Motion by Councilmember Elvig, seconded by Councilmember Look, to recommend that the <br />City Council approve the $320,000 equity contribution from the City;s HRA levy balance to <br />reduce the Savannah Oaks debt refinancing. . <br /> <br />Further Discussion: Councilmember Look asked if this action would set any precedent. Ms. <br />Skepper stated that should not set a precedent because this is the only project like this in the City. <br /> <br />Motion carried. V oting Yes: Chairperson Strommen, Councilmembers Elvig and Look. Voting <br />No: None. <br /> <br />COMMITTEE INPUT <br /> <br />None. <br /> <br />ADJOURNMENT <br /> <br />Motion by Councilmember Elvig, seconded by Councilmember Look, to close the regular <br />meeting of the Finance Committee. <br /> <br />Motion carried. <br /> <br />The regular meeting of the Finance Committee adjourned at 5:59 p.m. <br /> <br />Respectfully submitted, <br /> <br />cf)~ LJ <br /> <br />Diana Lund <br />Finance Officer <br /> <br />ATTEST: <br /> <br />Finance Committee / March 25, 2008 <br />Page 4 of5 <br />