03-14-1988 HR MIN - Laserfiche WebLink

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Page 2 HRA Minutes March 14, 1988 Mr. Santwire indicated that the program for subsidized apartments is a 515 low and moderate income housing program that is administrated by the Farmers Home Administration. The subsidy being discussed is in terms of lower interest rates on the the project and not a direct rental subsidy. However, it was noted that if very high vacancy rates exist over a long period of time, that the federal government could intervene and provide a direct rental assistance in the future. Mr. Santwire indicated that the total cost of the project is approximately $774,000.00, which is somewhat higher than the normal cost per apartment unit for apartment complexes that have been constructed in Elk River the past few years. The HRA concurred that these type of low and moderate income housing units are needed in the community but expressed its desire that such units not be congregated all in one apartment complex, but be dispersed throughout the community. The HRA indicated that low and moderate subsidized housing is more appropriate as a percentage of an apartment complex (i.e. 4 units of a 12 unit complex) . Commissioner Kropuenske indicated that he would have to abstain from any vote on this issue as the First National Bank, which is his employer, is involved in the proposed project. COMMISSIONER HINKLE MOVED THAT THE HRA PROVIDE MR. SANTWIRE A LETTER • STATING THAT THE HRA IS NOT OPPOSED TO THE PROJECT AS DISCUSSED AND OUTLINED IN THE 2/19/88 LETTER FROM MR. REITTER. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 3-0. Commissioner Kropuenske abstained. 3. Budget Expenditures Chair Gunkel indicated that a second purpose for this HRA meeting was to consider various budget expenditures as adopted by the HRA in August, 1987, prior to the levying of funds for HRA activities. A) Main Street Project Chair Gunkel indicated that she had received a 2/19/88 letter from Betty Kolar who is the co-chair of the downtown committee that is working on the beautification improvements associated with the Main Street improvement project. The letter requested a contribution from the HRA in the amount of $10,000.00 to help finance the redevelopment of the downtown area. Part of the redevelopment project includes new street lighting that are of a more decorative nature. The Staff indicated it has reviewed this request with the City Attorney, and that the response from the City Attorney was that HRA funding for such an activity was an eligible and legal expenditure. Chair Gunkel discussed the 1988 HRA budget and the fact that $10,000.00 • was placed into reserves for such a possible expenditure when the budget was approved.