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HomeMy WebLinkAbout11.20.2003• COUNCIL WORK SESSION November 20, 2003 8:00 a.m. Council Chambers Members present: Mayor Rooff, Welper, Clark, Jordan, Hurley, Getty, Greenwood, Kincaid. Moved by Jordan, seconded by Welper that the Agenda, as proposed, be approved. Ayes: Six. Absent: Kincaid. Motion carried. Agenda items that have been placed on the council agenda of Monday, December 1, 2003 were reviewed with Department Heads who have items on the agenda. Kincaid now present at 803 a.m. Items discussed: 1. An Encroachment Agreement with Whitaker Foods to install a security fence. Don Temeyer, Community Planning and Development Director, reported that vacation of the street will be brought to the council. The city will need to keep an easement over the street for storm sewers. 2. Eric Thorson, City Engineer, reviewed three agreements on the agenda relating to the 18th Street Bridge Construction Project. Mayor Rooff reported that the Gandolf Group, LLC has asked that the council consider the resolution tabled on November 17, 2003. The resolution is to support new affordable housing development near the Martin Luther King Jr. Drive and Idaho Street intersection and to support an application with the Iowa Finance Authority for Low -Income Housing Tax Credit. Rudy Jones, Community Development Director, reported that the Gandolf Group has not requested HOME funds for the project. Securing HOME funds usually helps with the tax credit application. Dave Wilson, Vice President of Lockard Realty Co., reported that the resolution of support from the council must be in Des Moines by 5:00 p.m. on Monday, November 24, 2003. Mr. Wilson stated he knows of the neighbors concerns, but this project will generate $4 million for the city. Murray Klane reported that the development is similar to one they constructed in Burlington, which has 48 units, while Waterloo's will have 56 units. The one bedroom units will have 850 square feet and three bedroom units will have 1,100 square feet. They will be cottage style homes, with single entrances. Fifty percent of the units will have an attached garage and 25 percent will have a detached garage. The units will have high speed Internet connection capability, dishwashers and refrigerators. A significant amount will be budgeted for landscaping purposes. The application is due with the Iowa Finance Authority by Monday and does require a resolution of support from the council. Mr. Klane stated that they have not applied for HOME funds from Community Development, but will get with Mr. Jones after the meeting. Mr. Jones stated that applications for HOME funds are due by January. Mr. Klane stated that the state also has HOME funds. The units will be for people at the 50 to 60 percent low income level. They are not Section 8 homes, but are for people earning between $9 and $11 per hours. The units will be stick built and Gandoff's will use local contractors and a local bank. Lockard Development would be able to bid on the project. Iowa Realty is not involved but will be listing agent for the ground. Mr. Klane stated that the reason they are requesting the resolution so late is that they just tied up the property a few days ago. Mr. Klane stated that the property is in an Enterprise Zone and allows them to have a graded tax abatement over ten years, which is one of the reasons they selected this site. Councilperson Clark stated that he called two cities that have low-income development sites built by Gandolf Group, one in Minot, South Dakota and one in Henderson, Kentucky. Both communities said they would not welcome them back to their community. Minot officials had issues after the units were built as Gandolf worked behind the scenes to secure 100 percent tax abatement and they did not use local contractors. Council Work Session November 20, 2003 Page 2 • • Mr. Gandolf responded that these are untruths. Gandolf Group took three bids from local contractors, and the contractors did not bid close to the budget. Fifty to sixty percent of the project was done by local subcontractors, but the general contractor was from out of state. Mr. Klane stated that the tax abatement was submitted with approval of the council and was not hidden from the council. The issue was the site Gandolf selected was close to a luxurious condo development, and they were opposed to the development. A new site was selected and approved unanimously by the council. Councilperson Clark reported that he spoke with a lady in the Planning and Zoning Department in Henderson, Kentucky. Henderson had other issues. The units were described as low-income, and she would not live in them and the city would not do it again. Councilperson Clark stated he would like to see the area developed, but he is opposed to the low-income project. Mr. Klane asked Councilperson Clark if he talked to the Mayor of Burlington. Councilperson Clark responded that he only spoke to those cities that had units in operation for a while. Councilperson Clark stated he is concerned what the units will develop into after a period of time. Don Temeyer, Community Planning and Development Director, reported that Gandolf has not met with the neighbors and the property would need to be rezoned for the housing project. Councilperson Getty stated it is unfortunate that Gandolf Group brought this so late to the council, but he does not want to rush into approving the resolution and does not feel he will be prepared to vote on the resolution tomorrow. Councilperson Kincaid stated he is okay with the project and is ready to approve the resolution for the tax credits because they will have to bring the rezoning back to the council. Mr. Klane reported it will be probably three months before the Iowa Finance Authority makes a decision. Mr. Klane pledged that Gandolf Group will meet with the neighbors, the council and the Planning, Programming and Zoning Commission. Mr. Gandolf stated they bring in the investors to purchase the tax credits. The federal government looks at the maintenance of the units. The Gandolf Group will have $150,000 for reserve operations and $12,000 to $15,000 maintenance reserve and upkeep of the property. Gandolf Group is in it for the long term and usually stays with the housing development for 15 years. Councilperson Welper stated that according to INRCOG, Waterloo has the oldest housing stock in Iowa. Mayor Rooff asked that a special meeting be held on Friday, November 21, 2003 at 9:00 a.m. for the resolution of support of the application to the Iowa Finance Authority for Low -Income Housing Tax Credits for the housing development near the Martin Luther King Jr. Drive and Idaho Street intersection. Mayor Rooff discussed the request from the National Cattle Congress to approve including the city's $2,460,780 commitment for the National Cattle Congress project for allocation in the next bond sale. Mr. Temeyer stated that they will put together a process for the CIP program. It was the consensus of the council that this item does not need to be on the December 1, 2003 council agenda. With no further business before the committee, it was moved by Jordan, seconded by Clark that the meeting be adjourned at 8:40 a.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk