Print VersionStay Informed
MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, January 28, 1998 - 4:00 p.m.

Members present: Beach, Polovitz.

1. Matter of Rental Rehab Program.
Curt Siewert, Urban Development Office, reported that over the last 4-5 months since had application deadline of September 15, 1997, had numerous projects that have dropped out of the program, that they started with 460 applications and now have 409 applica-tions; that original budget was $8,462,915 and leaves $641,519.00 unobligated. He offered several options for committee's review: 1) turn into general fund, 2) fund some new applications, 3) keep in budget and target for new projects that may be developed down-town (new residential rehab in the near future, at old First National Bank, and South Jr. High School), but they haven't made overtures, but no other place for rehab dollars, no buildings downtown that don't have residential except building next to Lola's and possibly Aaker's building. He noted Red River Dorm (dorm units) building just purchased by Mr. Samson and Mr. Nedberg. He reported there are some buildings looking for rehabbing source of funds without starting new projects. He reported 13 or 14 different aps. that didn't make deadline.

Polovitz stated he likes funds available for project but esp. downtown and would hesitate giving money for residential downtown and not to someone who missed deadline. Mr. Siewert reported they have information as to who those are, but would come back with exact numbers of people, etc. Committee stated that they would like to re-advertise, state certain amount of money available and pro-rate funds. Terry Hanson stated they could select those with low income housing or certain are in blighted area. Mr. Siewert reported they will have funding coming back in the future; that this is a loan with zero interest for 10 years and 5 years deferral. He noted that lot of deletions are duplication, and Mr. Hanson reported that they contact SBA on everyone of these projects and review for duplication. Mr. Siewert reported that a lot of projects are smaller projects (basements). Mr. Siewert stated has to be unfinished work but to get units back in line.

Committee held for further information.

2. Request for term extension of rental rehab. loan.
Mr. Hanson reported they received letter from Brad Stenberg, Cambridge Property Management, 2603 7th Avenue South, stating that they increased their rents by 15% in June, and with renovations complete, they anticipate another increase of 10% in 1998 to handle the new debt service and they have concerns re. becoming less competitive, and that extending the term to 15-20 years would help their operating expenses and enable them to keep their rents reasonable. Mr. Hanson stated that Mr. Stenberg was asking that they should revisit policies have in rehab program and Mr. Hanson asked for reconfirmation that they did establish policy for 10-year loan, with 5 years deferred, with zero interest, and shouldn't

MINUTES/URBAN DEVELOPMENT COMMITTEE
January 29, 1998 - Page 2

change program with no problems.

Moved by Polovitz and Beach deny request from Mr. Stenberg. Motion carried. (comm. only)

Meeting adjourned at 4:35 p.m.

Alice Fontaine
City Clerk

Dated: 1/29/98