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I' I I Council Meeting Minutes March 24, 1987 which construction would be required to commence in that Amendment (from December 1, 1986 to June 1, 1987) which should still work in terms of the tax increment schemes on the project and the amount of development assistance indicated in the development agreement. Locke introduced Brad Johnson, representing the Park Place senior housing developer, who was present to answer any questions. Benke stated if we do not approve the terms of the extension tonight, the project essentially starts allover; Locke confirmed. Johnson updated council on how the change in tax laws has impacted their changes; currently has a signed lease with Twin City Christian, a non-profit management organization; the ownership will be transferred before April 15, 1987; Allison Williams will be underwriting the park bonds which will close on May 15, 1987, with construction to commence on June 1, 1987; had to raise an additional $250 thousand in equity to make the bond transaction feasible; and appreciates council's patience in this matter. In response to Williams's inquiry, Johnson indicated he had been with Housing Alliance and ownership of this project is now being transferred from Housing Alliance to another landlord, Park Place Developer. Johnson continued that Park Place was set up so it could be transferred and First American Development is the devel- oper, of which he is the President. Johnson next noted the Hous- ing Alliance is no longer interested in being an owner, nor do they have the resources to proceed. In reply to Williams's query, Johnson stated when the council ori- ginally approved the project, Housing Alliance was to be the gen- eral partner along with Nasim Qureshi, the property owner; and Health Central was to be the manager of the facility; and explain- ed that five or six months ago it was recognized that a non-profit manager had to be brought in. Benke asked if that was because of the financial advantages; Johnson responded that senior housing fills slowly and New Brighton is a fairly shallow market for senior housing relative to other areas. Johnson continued they are faced with the need, from the bond underwriting point of view, to be able to expand the mar- ket place and non-profit organizations have a base to operate such a facility. Williams explained the City Council and the Planning Commission dealt with Qureshi quite a bit on this project and he became comfortable when Housing Alliance entered the picture; now he is less than comfortable not knowing about the various people that are going to take over the project; and is upset Housing Alliance is no longer involved. Page 7