12-19-1983 CC MIN - Laserfiche WebLink

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City Council Minutes December 19, 1983 Page Seven COUNCILMEMBERGUNKEL MOVED TO AUTHORIZE THE PURCHASE OF MISSION X24 FROM THE LOCAL DEALER FOR THE CARPETING TO REPLACE THE CARPETING IN THE LIBRARY LOBBY AND IN FRONT OF THE CHECK OUT DESK. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION PASSED 4-0. F. Letter of Support for Barthel Development The City Administrator indicated that the developers of the Planned Unit Development have requested a letter of support for 32 units of housing to be submitted to the Farmer's Home Administration, as the developers are applying for financing from that source. The City Administrator indicated that financing through the Farmer's Home Administration would provide for low interest loans and the developers would be obligated to rent at predetermined rental rates. The City Admin- istrator indicated that the income guidelines would be for moderate incomes with an annual income of $23,500 as a maximum. Councilmember Gunkel indicated that she felt the City should not send a letter of support, when the developers have not signed a developer's agree- ment. Councilmember Gunkel indicated that it was her understanding that the commercial development was to come first. Councilmember Gunkel further indicated that she believed the phasing plan was designed for a purpose and if it was not used, she was not in favor of the letter of support. General discussion was carried on regarding the phasing plan and the type of project proposed. Councilmember Engstrom indicated that he has heard good comments on the Brutger project and if this project were com- parable, he did not have a problem with that type of project. The City Administrator indicated that the proposed project by the Barthel developers would be for moderate income families. Councilmember Gunkel indicated that the City does not have a developer's agreement with the developers and therefore, felt the developers would use the letter as one more means of leverage with the City. Councilmember Gunkel further indicated that she would not support a letter to the Farmer's Home Administration. Mayor Hinkle indicated that he did have some concerns about the letter of support, as it appears the developers are always asking the City for their support and yet are not willing to take any risks by signing a developer's agreement or making any other commitments. It was the consensus of the City Council to not send a letter of support to the Farmer's Home Administration for the Barthel proposed housing project. F. Morrell Purchase of City Property The City Administrator indicated that Mr. Larry Morrell has proposed pur- chase of the City's five acres of property on Highway #169 for $18,000. Mayor Hinkle indicated that he felt it was out of the question, as the City in the past has not considered rezoning that property and has rejected a larger offer.