Committee Minutes

Minutes - Finance Committee - September 8, 1998 - 6:30 p.m.

Members present: Carpenter, Babinchak, Brooks, Hamerlik.

1. Matter of tax exemption for South Middle School.
Request from MDI Limited Partnership #38 for a 10-year real property tax exemption pursuant to NDCC 40-58-201(11), with the proposed development to consist of the substandard rehabilitation of facilities located at 1224 Walnut Street to create 45 units of senior housing. Gary Stenson, proposed developer of the South Middle School and Jeannie Kelsey, development coordinator, reviewed their request. Mr. Stennes stated that after various discussion and meetings they were at about 10-year tax abatement but only 50% of the taxes so would be paying $19,000/year, and that would amount to $190,000 abatement over the 10 years or present value of that is approx. $150,000 and that there are HOME funds that were recommended by the Urban Development Committee of $465,000, and total of that package would be about $615,000 divided by the 45 apartments at South Jr. High amounts to about $13,700 as opposed to the $17,000 from Riverside Manor. He stated that the deadline has been extended twice and can't extend again, ND Housing Finance Agency is the reservation of the housing tax credits, and that deadline is the 14th of this month, or Monday.
After discussion it was moved by Carpenter and Babinchak to recommend a 2-year 50% exemption. Motion carried.

2. Premiums for additional flood insurance:
a) Senior Citizens Center - $ 836.00
b) Water Treatment Plant - 51,234.75
c) Civic Auditorium - 25,793.00

Moved by Carpenter and Brooks for approval. Motion carried.

Meeting adjourned.

John M. Schmisek
City Auditor