HomeMy WebLinkAbout1979/07/23 - ADMIN - Minutes - City Council - Regular MINUTES
SPECIAL CITY COUNCIL MEETING
CITY o STr . LOUIS PARK M ]NN .
July 23 , 1979
1 .
Ca1 1 to Order. A special meeting of the City Council was
--------- - called to order by President Pro Tem Hanks
at 5 : 20 p . m .
2 . Rola Call The following Councilmen were present :
Ronald Backes Keith Meland
Jerrold Martin Martha Elstrom
Lyle Hanks
Also present were the City Manager and Planning Director .
3 . Housing Plan / The Planning Director explained Minnesota
Mortgage Revenue Bonds Statutes , Section 462C . O1 et seq , allows the
City to develop and administer programs of
making or purchasing mortgage loans to finance
acquisition of single - family and multi- family housing by low- and moderate -
income families . Such mortgages are purchased or created through issuance
of tax- exempt mortgage revenue bonds , prior to the issuance of which it
is required that the City develop a housing plan .
The Planning Director described various housing plans which pertain to
Minnesota cities including a comprehensive housing plan , housing
assistance plan for Community Development purposes , and the general housing
plan required for issuance for mortgage revenue bonds . He described the
specific requirements of the housing plan and explained staff will soon
submit an overall housing plan which will contain components addressing
all the housing needs and program requirements .
It was explained the housing plan for mortgage bond purposes must
establish a maximum purchase price or appraised value for each property
purchased under the program , establish limits on gross income within
parameters included . in the legislation , require a minimum percent of
funds to be available to specific income groups , and it may establish
target residential areas or redevelopment districts in which 20 percent
of the loan money would be available without regard to income or net
worth .
Councilman Meland questioned the definition of the family as it relates
to this program . It was explained the Act did not define the term ; however ,
it was explained there are definitions of a family contained in other
federal programs .
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Special City Council meeting , July 23 , 1979.
Councilman Meland referred to the need for more families with children
living in St . Louis Park and referenced the prior discussion between
the City Council and the School Board .
Regarding the condition of the program establishing a maximum commitment
it was explained the City ' s program could not exceed three years nor
provide for issuance of more than $ 48 million in bonds .
There was considerable discussion regarding the designation of specific
areas within the City for concentration of the use of such mortgages .
Certain neighborhoods identified in the Community Development Program as
having a concentration of low- and moderate - income families were
illustrated .
President Pro Tem Hanks suggested the City Council may wish to consider
designating Oak Park Village as such an area ; however , he did not believe
the City should establish any " target " areas within residential districts .
There was brief discussion regarding the possibility of designating the
entire City as a " target area . "
A representative of Miller & Schroeder Municipals , Inc . , described
legislation currently being considered by the U . S . Congress . He
explained the legislation may restrict or prohibit the use of tax- exempt
bonds for residential mortgage purposes . The exact ramifications of
this legislation were unknown at this time .
Councilman Backes stated there may be benefit in the City using such
bonds to increase the availability of owner - occupied housing to low- and
moderate - income families ; however , he would not favor the use of such
mortgages for . conversion of existing units to condominiums . There was
general concensus among the Council members present that such mortgages
should not be used for condominium conversion .
There was discussion regarding the use of mortgages created by tax- exempt
revenue bonds for new construction within redevelopment areas and the
possibility of concentrating such mortgages south of West 32 Street in
recognition of the reduced number of families with children in that area .
Staff was directed to prepare recommendations regarding these items .
The number of lending institutions and qualifications of lenders
participating in the program was discussed . It was explained that
savings and loan institutions would likely be most interested in parti-
cipation in such programs , and it is expected that all St . Louis Park
institutions would qualify .
The Council expressed an interest in establishing a maximum administrative
cost for each mortgage at the level of 1 percent .
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Special
City Council meeting , July 23 , 1979
Regarding the proposed increase in the Cityrs
Sewer Rates sewer rate structure , Councilman Meland explained
it appears that on August 6 , 1979 , the City
11 consider staff ' s recommendation of increasing the rate by
1pi per hundred cubic feet ,
Council wi in that there is not enough information
however , he cautioned it would be likely that
available to act otherwise ;
the
Council will have toconsider an additional increase in one year , as
the operating costs continue to rise .
Councilman Meland suggested there may be a need to hire a consultant to
review and analyze the sewer and water fund to determine that revenue of
these funds is used only for operation of that fund and explore other rate
designs including one with a rate which increases with volume .
5 . Louisiana The City Manager briefly explained that long-term
Avenue design plans for Louisiana Avenue may need some
adjustment and explained there is a need for
direction from the City Council regarding such
design . He added a report will be prepared for
the City Council for its consideration at a future date .
6 . Rental Councilman Elstrom referred to a policy established
to Families by the City of Minneapolis whereby mortgage funds
under the discretion of the City could not be used
to construct multi- family buildings which did not
rent to families with children .
Referring to the use of tax- exempt revenue bonds for mortgage purposes ,
she suggested the City Council should consider earmarking specific amounts
of such funds for families with children .
7 . Adjournment There being no further business , the meeting
was adjourned at 7 : 25 p . m .
gartj
e W . Hanks
At -
' resident Pro Tern
Mark ' ether
Recording Secretary
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