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Home My WebLink About4.b. Progress Report from Dakota County HRA on the Rosemount Senior Hoursing Project CITY OF RO5F��IOUNT EXECUTIVE SUlVIlV1ARY FOR ACTION PORT AUTHORITY CONIlVIIS5ION MEETTNG DATE: JULY 19, 1994 AGENDA ITEM: PROGRESS REPORT FROM DAKOTA AGENDA SECTION: COUNTY HRA ON SElVIOR HOUSING PROJECT OLD BUSINESS PREPARED BY: JOHN MILLER AGENDA NO. 4.B. ECONOMIC DEVELOPMENT COORDINATOR ATTAC�IlVIENTS: CORRESPONDENCE TO DIANE APPROVED BY: NORDQUIST, INFO FROM HRA At the July Sth port authority meeting the commissioners discussed at some length the planned senior housing project. Issues discussed included: 1) relocation of the Peoples Natural Gas gas line, 2) costs associated with construction of a lower profile bu�lding and 3) how the city might pay for the added costs. I was directed by the commissioners to have contact with the Dakota County HRA making sure it was prepared to address specific issues at the July 19th meeting. In this regard, I telephoned Diane Nordquist and followed that conversation with the attached correspondence. RECONIlVIENDED ACTION: NONE - INFORMATION/DISCUS5ION ITEMS ONLY PORT AUTHORITY ACTION: -2- The Hastings and West St. Paul developments are both examples of locations where the city wanted something different than what our senior development program provides funding to construct. As shown in both cases, local funding for the cost(s) were provided. The HRA is waiting for the results from the gas company study and has started preliminary site plans for the building layout. It is anticipated that this information will be available for the last Port Authority meeting in August. If any additional information is needed on this matter, please feel free to contact Diane Nordquist of our office at 423-8112 . , -<..,;:;:::::;:::: �� .� :::�:::�;.:��_;:�� PEOPLES NATU RAL GAS :3::=; :�::. ... ...... .............. ......... In your letter, you also provided a site location for the � proposed project. A segment of the site covers Birch Street which is vacated. Peoples Natural Gas currently has a main running through this corridor. I have attached a map showing the location of our main in the vicinity of your project. Please coordinate any possible relocations of our facilities through Floyd Otte at 423-5900. Sincerely, Daniel J. Schroeder Dir. , Operations Engineering cc: M. Kisicki F. Otte D. Perron HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF HASTINGS Resolution No. 2-90 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT TAX PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6, AND APPROVAL ' OF A BUDGET FOR FISCAL YEAR 1991. WHEREAS, the Housing and Redevelopment Authority in and for the City of Hastings (the "Authority") was created by the City Council of the City of Hastings (the "City") pursuant to the Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 469.001 to 469.047 (formerly, Sections 462 .411 to 462 .711) (the "Act") ; and WHEREAS, Section 469.033, subdivision 6, of the Act permits the Authority to levy and collect a special benefit tax of up to .0081 percent of taxable market value in the City upon all taxable property, real and personal, wi�hin the Ciicy; and WHEREAS, the Authority desires to levy such tax in the amount of .0081 percent of taxable market value in the City; and WHEREAS,. the levy of such a special benefit tax is subject to � the consent by reso�ution of the City Council of the City; and WHEREAS, the proceeds derived from the special benefit tax will be dedicated to administration and to a senior housing proj ect as contemplated in the Development Agreement dated as of June 13 , 1989 between the City, the Authority, and the Dakota County Housing and Redevelopment Authority; and WHEREAS, the Authority is also required pursuant to Section 469.033, subdivision 6, of the Act to, in connection with the levy of such a special benefit tax, formulate and file a budget in accordance with the budget procedure of the City in the same manner as required of executive departments of the City or, if no budgets are required to be filed, before August l, and the amount of the tax levy for the following year shall be based on that budget and approved by the City Council of the City; and WHEREAS, the Authority has before it for its consideration a copy of a budget for its operations for the fiscal year 1991. NOW, THEREFORE, be it resolved by the Board of Commissioners of the Authority: Section 1. The budget for the operations of the Authority presented for consideration by the Authority is hereby in all respects approved. 1 � �y� AI>Y yY ry t rf �i"A,��:�('� {� .�? � _ . '�7�� '��r�'��'yx'�1 fic r- ��F CN 1r �IF WE�T ST. PAUL 1616 HU BOLOT AV�.,WEST St PAUL,IMN 55t18-3�72' ADMINI8 TION 455-96T1 � PouCE I�No FIRE�ss-v6ra EMERGENCY�'11 �, � Pbst-lt"brand fax transmitt�l memo 7671 r or pa�.. . Te � From � •+: STATE OF MINNESOTA } � G�• J��}�r ca � COUNTY OF DAKOTA 1 �� f �� ' � S S ! Dept• phOn�+Y CI'fY OF WEST SAINT PAUL ) � --<•'�,-- f FazN ').j „ „.� F*aM ` ', i �� p.Gs•'— . I� Dianne R. Latuff, being the City Clerk of the City of 41est St. Paul , � Dakota County, Minnesota, do hereby �ertify that the foregoing is a true and Correct copy of the City Council �Minutes of July 2a, 1989, regarding the HRA Senior Housing loc�ted between South Robert, Haskell , ' � - � Oakdale and Mainzer Street, duly passed by the City Council of said City on Ju1y 24, ]989; and that the same �s on file t�nd of record in my office. ` � ; ity er � . Dated: May 13, 1991 � I . i - Seal - ` 4 . � i AN EQUAL OPpORTUNITYlAFFIRMATIVE ACTlON �MPLOYER I ► Fi rst Trust Frst Trust Center P.O.Box 64488 St.Paul, MN 55164-0458 JAN 2 z 1�92 January 21, 1992 Ms. Jessica Sucoff The Dakota County Housing and Redevelopment Authority 2496-145th Street West Rosemount MN 55068 Re: Dakota County HRA Senior Bonds, Series 1991 Dear Jessica: As we discussed, please accept this letter as our acknowledgement of receipt of Resolution 91-605 and a copy of the Affidavit of Publication. Due to the fact that the $75, 000 has been approved in the West St. Paul Tax Increment Plan budget, the County Levy pledge does not have to be increased by $75, 000. Sincerely yours, ( � /'I > �f _ �,�`--(_'C.� l�� ,��j i1L �� ,�jr Sheri A. Christopherson Assistant Vice President (612) 223-7077 ' 0416N/120 33-30250 Member First Bank System . Rents. The amount of rent to be paid by a resident will be dependent to some extent upon the income level of the residents. Residents are to pay as rent, 30� of their Adjusted Income, but not less than $250. 00 each month for a one-bedroom unit and $325.00 each month for a two-bedroom unit. A tenant's Adjusted Income will be calculated annually and rents floor andnceiling levels�reaThe accordingly (subject to applicable amount of a tenant' s monthly payment is also subject to a ceiling. Ceilin g rents for the West St. Paul Project will egual the applicable HUD Section 8 fair market rents for the area, w hic h a r e currently $449. 00 per month for a one-bedroom unit and $529. 00 per month for a two-bedroom unit. Tenants will be responsible for utility costs consisting of telephone and electricity charges applicable to their rental unit. The Authority is responsible for all other utilities, including heating. Underground parking spaces will be available to residents at an additional charge of $35.00 each month. Rents are subject to adjustment by the Authority, however, the Authority does not expect that minimum rents will be reduced. Competinct Facilities. A number of market-rate multifamily rental units are located in West St. Paul in the general vicinity of the West St. Paul Project. The Authority anticipates that the West St. Paul Project can compete effectively with such apartment facilities due to the lower rent structure of the West St. Paul Project and its distinct design as a residence for senior citizens. The Authority owns and manages an 80-unit federally subsidized apartment building for senior citizens and handicapped persons located within one mile from the West St. Paul Project, known as Colleen Loney Manor. Such facility is currently 100� occupied with a waiting list of 36 persons. An additional 60-units of senior multifamily housing, known as Mount Carmel Manor, is located in the general vicinity of the West St. Paul Project, which is also 100� occupied. The Authority believes that the West St. Paul Project has amenities comparable or superior to the above-mentioned projects and will compete effectively. See "BONDHOLDERS' RISKS -- Competition. " Revenue and Expense Proiections. Appendix C hereto sets forth certain of the Authority's pro�ections relating to the expected revenues and expenses of the West St. Paul Project. Such projections are based upon assumptions which the Authority believes to be reasonable, but which cannot be assured. See "BONDHOLDERS' RISKS -- Nature af Historic and Projected Data." SuPplemental Revenues. Pursuant to the Series 1991 ��Supplemental Indenture the Authority will pledge certain a ent of the Series 1991 Bonds Supplemental Revenues to p ym originally allocated to the acquisition and construction of the o 'ect to be derived from tax increments collected jZy the Authoritv from its Tax Increment Financinq District No. 1. 41 Competing Facilities. The Authority anticipates that the primary competition for the Hastings Project will come primarily from a recently reconstructed 109-unit Section 8 subsidized senior housing facility located on the outskirts of the City of Hastings known as Oakridge Manor. The Authority believes that this facility is currently full with a waiting list of two persons. Rents at such facility are similar to those for the Hastings Project, however, income guidelines for the competing project are more restrictive, requiring that tenants have incomes not in excess of 50� of inedian income, as adjusted for family size. The Authority believes that, based upon demand surveys conducted annually by the Authority, and the waiting list for the competing facility, sufficient demand exists in the Hastings vicinity to justify an additional subsidized senior housing facility. Hastings also has an older 43 unit assisted living facility for seniors. This facility is intended for persons who require, in general, more assistance with daily living than would be required for anticipated tenants of the Hastings Project, with correspondingly higher rent levels. Therefore, the Authority believes that the Hastings Project will compete effectively with such Project. See "BONDHOLDERS' RISKS -- Competition. " Revenue and Expense Prolections. Appendix C hereto sets forth certain of the Authority's projections relating to the expected revenues and expenses of the Hastings Project. Such projections are based upon assumptions which the Authority believes to be reasonable, but which cannot be assured. See "BONDHOLDERS' RISKS -- Nature of Historic and Projected Data. " Supplemental Revenues. Pursuant to the Series 1991 Supplemental Indenture, the Authority will pledge certain Supplemental Revenues to payment of the Series 1991 Bonds originally allocated to the acquisition and construction of the Hastinqs Project, to be derived from avments to be received bv t�� Authority from the Housinq and RedeveloQment Authority of the C_itr of Hastings, Minnesota (the "Hastings HRA") pursuant to a Development Agreement dated June 13, 1989, as amended between the Hastings HRA, the City of Hastings and the Authority. Payments to be made by the Hastinqs HRA are expected to be derived from either �x increments c�enerated by the HastinQs HRA Downtown Redevelonment �Area (the "Redevelopment Area") , or after expiration of the Redevelopment Area expected in the year 2000, from proceeds received by the Hastings HRA through a special limited housing tax levy on all taxable real property within the City of Hastings levied pursuant to the Act. Such Supplemental Revenues constitute Restricted Revenues. Unless earlier terminated or reduced as described herein in APPENDIX B: "SUPPLEMENTAL INDENTURE -- Pledge and Deposit of Revenues and Supplemental Revenues" , such pledc,te, in an annual 47