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<br />1 <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />June 22, 1993 <br /> <br />Page 6 <br /> <br />Council Business, continued <br /> <br />The proposed layout for the downtown area includes: Rottlund Home <br />Project, Stony Lake Commercial Project and expansion of New Brighton <br />Care Center. When completed, the Care Center will include new and <br />expanded dining, therapy, day space, reception area, and parking. <br /> <br />Negotiations have been completed for the expansion of the current Care <br />Center. The City was awarded $350,000 from the Ramsey County <br />Community Block Grant (CDBGl to assist with this expansion. <br /> <br />The City agrees to acquire and convey the three properties north of the <br />Care Center for $58,500 plus part of the demolition costs. Prior to <br />acquisition, the redeveloper will post a letter of credit for $150,000. An <br />Assessment Agreement providing a minimum valuation of $1.400,000 was <br />negotiated for the entire site. In the event the property is sold to a non- <br />profit entity, the entity would be required to make a payment in lieu of <br />taxes or the City would not approve the transfer. <br /> <br />The Economic Development Commission supports this project. <br /> <br />Mr. Chies, New Brighton Care Center, looks forward to beginning <br />construction of the addition. Because of the State moratorium for the <br />construction of new nursing homes, he cannot construct additional beds, <br />but will make some rooms larger. <br /> <br />Motion by Williams, seconded by Larson, to WAIVE THE READING AND <br />ADOPT THE RESOLUTION AUTHORIZING THE MAYOR AND CITY <br />MANAGER TO EXECUTE A DEVELOPMENT AGREEMENT BETWEEN THE <br />CITY OF NEW BRIGHTON AND NORTH CITIES HEALTH CARE (NEW <br />BRIGHTON CARE CENTER). <br /> <br />5 Ayes - 0 Nayes, Motion Carried. <br /> <br />Benke explained that Council needs to decide upon G & P Properties' <br />request for the issuance of Housing Revenue Bonds for the Brightondale <br />Senior Housing Project. Because the City does not own Brightondale, <br />Council cannot require G & P to make changes to their program. If Council <br />votes against authorizing the bonds, G & P would seek other more <br />expensive financing which could cause a larger rent increase. <br /> <br />Community Development Director Kevin Locke said G & P is asking <br />issuance of $3,165,000 in revenue bonds. These bonds are a limited <br />obligation of the City, payable from the revenues generated by the project. <br />The bonds do not effect the City's bond rating nor can the bonds be <br />charged against the City taxing powers. The cost of issuance is the <br />developer's expense. A public hearing was held on June 8 where G & P, <br />Brightondale residents and Capitol Indemnity expressed their views. <br /> <br />The request comes from the default on the repayment of the original $4.2 <br />million in bonds. A trustee foreclosed on the property and entered into an <br />agreement with G & P which was authorized by the Ramsey County Court. <br /> <br />Council Business <br /> <br />Development <br />Agreement for New <br />Brighton Care <br />Center <br />Report 93-175 <br />Resolution 93-084 <br /> <br />Brightondale <br />Revenue Bonds <br />Report 93-176 <br />Resolution 93-085 <br />