06/18/1985 - Housing and Redevelopment Authority
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MINUTES OF THE HOUSING & REDEVELOPMENT AUTHORITY
EAGAN, MINNESOTA
JUNE 18, 1985
A meeting of the Eagan HRA was held on Tuesday, June 18, 1985 at the Eagan
Municipal Center. All members were present.
CINNAMON RIDGE PROJECT
Councilmember Egan moved, Wachter seconded the motion to adjourn the City
Council meeting and to convene as the Eagan Housing and Redevelopment
Authority. All members voted yea. After convening of the HRA meeting, the
Mayor announced that the Authority would consider an interest rate reduction
program for the Cinnamon Ridge project/Can-American multifamily housing
project. The tax increment financing district plan and interest rate
reduction plan for Cinnamon Ridge housing project had been completed and were
submitted to the HRA for review. Tom Hedges reviewed the proposal with the
City Council and noted that Marsha Cohodes of Miller and Schroeder and Stan
Kiehl of Holmes and Graven, Attorneys, were present. There were certain
questions including the size of the project and it was mentioned that the
project includes a $12,500,000 multi-family housing revenue bond issue that
has been approved by the Council. It was noted that the City can require an
assessment agreement under the plan, and that the City will share in the
equity of the project. Councilmember Wachter stated that it was his opinion
that the project and the site do not warrant tax increment financing and that
it is not a proper location for multifamily housing utilizing tax increment
financing. Councilmember Smith indicated that it is an inducement to build if
the project would not otherwise be built and the real estate tax differetial
will be recaptured at the end of ten years, noting that the City will share
50% in the equity. There were no objections from members of the audience
present.
Councilmember Smith moved, Councilmember Egan seconded the motion to
approve the resolution and recommend the plan to the City Council. Those in
favor were Egan, Thomas and Smith. Those against were Wachter and Blomquist.
Councilmember Smith stated that there were several concerns of the Council
including the; agreement regarding assessments and also requested that examples
be provided if the rate of return is adjusted in different amounts.
Egan then moved, Wachter seconded the motion to adjourn the HRA. All vote
yes.
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