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Council Meeting Minutes March 8, 1994 Page 4 Council Business. continued There are adequate residuals from 1993 operations to permit reserving those appropriations. The 1993 residuals are expected to be $412,900. This figure may be adjusted somewhat as work on the annual report progresses. Factors contributing to this variance include licensing fees, engineering fees and interest income. Egan noted that the 1993 Annual Report would be published in April. Motion by Gunderman, seconded by Samuelson, to WAIVE THE READING AND AOOn THE RESOLUTION AUTHORIZING THE CARRY-QVER OF 1993 APPROPRIATIONS. 5 Ayes - 0 Nayes, Motion Carried. Economic Development Specialist Jill Hanson presented for consideration authorizing preparation of a development agreement with the National Handicap Housing Institute (NHHI). The NHHI is proposing to build a 28,000 sq. ft, 25 unit handicap apartment facility on the comer of Pike Lake Drive and Thorndale Avenue. This project recently received a grant from HUD for the facility's construction. The proposed terms of the development agreement are: NHHI commits to build a 27,678 sq. ft. building with a total estimated market value of $925,000; annual taxes will approximate $28,220; City will provide $150,000 in increment assistance; and a payment in lieu of taxes clause if taxes are lowered due to tax class change. HUD has required the installation of central air conditioning; additional landscaping; office space for personal care attendants; assistance in land acquisition; and soil correction costs. Without City assistance, the project would be economically unfeasible for NHHI to proceed. The project would be located within the proposed TIF #23 and is consistent with the City's TIF District Plan. A public hearing for the creation of TIF #23 will be held on April 12, 1994. Samuelson verified that the office space reserved for the personal care attendants is included in the total square footage. Mike Berstad, NHHI, feels this is an excellent site because of its access to retail and commercial facilities. The building would be occupied by low income persons who are mobility impaired and require a wheelchair. Also, some residents may include persons who have physical disabilities, but are ambulatory. Six of the units would be made available to persons with severe physical disabilities. Benke asked what the real demand is for this type of unit. Mr. Berstad estimates that within New Brighton there is probably about 2,000 people who would need this type of facility. As part of the HUD application, NHHI performed a market study to determine the need for this facility. Mr. Berstad noted that across the northern tier of the Metro Area there is no similar building as this. Council Business I 1993 Appropriations Report 94-{)61 Resolution 94-033 NHHI Development Agreement and TIP 23 Report 94-062 Resolution 94-032 I I