Minutes - Council - 08/25/1998 - Laserfiche WebLink

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Attorney Goodrich was not certain that the final decision had been made with regard to the need for that additional money. It has been thought that the fees for the attorney, surveys, etc. will be reimbursed. Mr. Norman stated that the facility will be turned over to the HRA. They will have a management group to manage the property - they will pledge a levy. The eligibility requirements for the senior housing will be as follows: 1) available to senior citizens, aged 55 and over; 2) Income limits - 75% no greater than the median income which for this area is at $60,000; 3) priority applicant would be a person who lives in Ramsey or the parents or grandparents of a Ramsey resident; 4) initial rent amounts are $550 for one bedroom, $680 for one bedroom and den, and $795 for two bedroom units. This does not include the garage. The time is as follows: Acquisition in November 1998, bond closing in November 1998, conveyance of land to Anoka County Housing Redevelopment Authority (ACHRA) at/after the bond closing and completion of construction scheduled for August 1999. If there is any dispute between the City and the HRA, it would be resolved by mutual agreement of the parties. Discussion ensued relating to when the City would be reimbursed. Paragraph F of the proposed agreement was read which states: At the time that the bonds used to finance the Project are paid in full, should there be any funds remaining from Project revenues or proceeds from the sale of the Project Site, such funds shall be divided equally between the City and the ACHRA, after first reimbursing the City for (i) the actual costs expended by the City in acquiring the Project Site, the actual costs of extending public utilities to the Project Site, less amounts reimbursed to the City for such costs pursuant to Section 2.C. (the "Initial Development Obligations"); and (ii) to the extent not previously paid any and all amounts that the City may pay pursuant to its general obligation pledge (the "Payment Obligation"). Annual project operating revenues, if any, in excess of debt service and other operating costs of the Project, shall be accumulated in an operating reserve in an amount not in excess of six month's operating costs, and, thereafter, shall be distributed at the end of each bond year equally between the City and the ACHRA, after first reimbursing the City for any outstanding Payment Obligations. Amounts on deposit in such operative reserve may be applied at the discretion of the ACHRA, to costs of any nature related to the maintenance development, operation, or debt service with respect to the Projects. Upon inquiry, Mr. Norman estimated needing $195,000 within 60 days, or before we take possession. Motion by Councilmember Haas Steffen and seconded by Councilmember Beyer to authorize entering into a joint powers agreement with the Anoka County Housing and Redevelopment Authority for a senior housing project located near the site of the City's water tower. City Council/August 25, 1998 Page 22 of 26