08-11-1994 HR MIN - Laserfiche WebLink

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HRA MINUTES Page 2 August 11, 1994 reason given by the County Assessor was that the Evans Park complex was not • financed by a direct loan or a federal insured loan in order to qualify for the 4C classification. Carol Mills further explained that Guardian Angels made application to the Minnesota Housing Finance Agency for the Evans Park, Inc. project. Guardian's Board of Directors elected to choose alternative financing which would permit lower rents to the tenants of the project. She explained that Evans Park and its services are designed specifically for the elderly and includes features such as 24-hour emergency system, on-site meals and activities, and a staff social worker to assist the seniors with services necessary for them to remain independent. On the basis of the current 4A classification, Guardian Angels appeared at the April 28, 1994 City Board of Review meeting. In addition, it appeared at the June 21, 1994, County Board of Equalization meeting. To preserve its opportunity for an appeal, Guardian filed an appeal with the Minnesota Tax Court, and, the first half property tax payment for 1994 has been paid. Guardian's legal counsel, Walter Baker, has met with Assistant County Attorney, Kathleen Heaney, to discuss possible solutions to resolving this issue. At this time, Sherry Emmerson reviewed the conditions found in Minnesota Statutes, Section 273.1317. Evans Park, Inc. believes it meets these thresholds. One condition or threshold is to have a local housing and redevelopment authority annually review the income records of the tenants in Evans Park to ensure compliance that 20 percent or more of the residential units are occupied by persons whose income is 50 percent or less of the area medium gross income. The agreement which provides for ensuring this compliant is typically for a period of 15 years. However, because the project is already in existence, Guardian's legal counsel has advised that the agreement can only run through the year 2001. Sherry Emmerson further stated that she has prepared a survey for completion by the Evans Park tenants. The survey will help her determine the estimated gross income of the tenants. She indicated that 27 of the 35 surveys have been received to date, and, that on the basis of the returned surveys Evans Park can qualify under the provisions of Section 273.1317. Sherry also provided an overview of the rents at Evans Park. There are 24 one-bedroom units that rent for$550 per month. The 12 2-bedroom rent for$675 per month. COMMISSIONER TOTH MOVED TO AUTHORIZE STAFF TO WORK WITH REPRESENTATIVES OF GUARDIAN ANGELS OF ELK RIVER, INC. AND SHERBURNE COUNTY TO DRAFT AN AGREEMENT SO THAT EVANS PARK, INC. RETAINS THE 4C PROPERTY CLASSIFICATION. COMMISSIONER HINKLE SECONDED THE MOTION. THE MOTION CARRIED 3-0. The agreement will be considered by the Elk River HRA at a future meeting at a time when additional Commissioners are present. 5. Consider Revised Construction Plans for the Public Improvements at the Former City Hall Site (U.S. Hiclhwav 10, Main Street, and UPA Drive)