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Councilmember Haas Steffen asked how long the TIF district would last, she assumed it would <br />be 20 years. <br /> <br />Ms. Wright and Mr. Johnson said that was the case. <br /> <br />Councilmember Haas Steffen stated that Section 8 restricts developments to an eight-year <br />minimum and a ten-year maximum. <br /> <br />Mr. Johnson stated that the Section 8 certificates would be up to 25% of the cost of rent. <br /> <br />Councilmember Haas Steffen asked that if two people had certificates and were not related, <br />could they use them together on a property? <br /> <br />Ms. Wright stated that she did not know of anyone who had done that and that the ACCAP <br />management policy would prohibit that practice. <br /> <br />More directly, Councilmember Haas Steffen asked how many people could feasibly be in one of <br />the three bedroom units. <br /> <br />Ms. Wright stated that ACCAP management policy and Section 8 restrictions would set a <br />maximum of eight persons per three-bedroom townhouse. <br /> <br />Councilmember Haas Steffen asked who would run the buildings and maintenance. <br /> <br />Ms. Wright stated that exterior maintenance of the home, care of the grass and snow plowing <br />would be handled by ACCAP. They would also be responsible for interior repairs and a <br />minimum of one annual inspection. <br /> <br />Mr. Johnson added that normally, more than one inspection is performed on these properties <br />each year. He stated that ACCAP has the option of purchasing the property in 15 years, and it is <br />there intention to exercise this option. It would happen because that the tax credit for the <br />partners in creating this project would have a 15-year minimum commitment from the banks and <br />others that contribute to the project. At the end of that 15 years, ACCAP would have a purchase <br />option for the amount of outstanding debt. <br /> <br />Councilmember Haas Steffen asked to see those figures of the anticipated outstanding debt at the <br />end of those 15 years, so she could determine if the City was getting any payback on their <br />investment. <br /> <br />Mr. Wagner asked who owns the property now. The answer was Blaine Edmundson. He asked <br />also if there would be any other contribution asked or required from the City. <br /> <br />Mr. Johnson stated that it is limited to the TIF funding. <br /> <br />Being unfamiliar with the property, Mr. Wagner asked if the surrounding neighborhood had any <br />covenants, and if there were any barriers. <br /> <br />Economic Development Authority/January 12, 1999 <br /> Page 8 of 11 <br /> <br /> <br />