01-17-1983 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
MONDAY, JANUARY 17, 1983 - 7:00 P.M.
1. CALL TO ORDER
The meeting was called to order by Assistant City Clerk Ken
Merrill at 7:00 p.m. with the following present: Alderman John
Mlinar, Alderman Ted Beatty and Alderman Mike Carls. Absent:
Mayor Jim DeMeyer and Alderman Ken Gruenhagen. Also present
in addition to Assistant City Clerk Me-trill,was City Attorney
Jim Schaefer.
Alderman Beatty was appointed Chairman on a motion by Alderman
Carls, seconded by Alderman Mlinar and carried unanimously.
2. PUBLIC HEARING - PROPOSED PROJECT AND COMMUNITY DEVELOPMENT BLOCK
GRANT APPLICATION
Chairman Beatty read Publication No. 3012, Notice of Public Hearing.
Frank Fay and Tim Lemke, Professional Planning & Development Company
of Mankato, were present to provide information on the proposed
project.
Mr. Lemke explained that Mr. Fay has retained the services of
Professional Planning & Development Company to prepare and submit
a CDBG application to HUD. They propose to apply for FHA 515 Housing
funds to rehabilitate the old Hutch Hotel into 15"to 18 two-bedroom family
units. The units would rent for about $260 per month and under the
terms of the grant, the rent cost would not be subsidized.
The grant request will be for about $500,000. In order to receive
favorable consideration for the application, they propose to make
a payback of approximately $1000 per month over a 40 year period
to the City, which funds may then be used by the City for other
development needs.
Mr. Lemke and Mr. Fay further explained that they may make a
request to the City for tax increment funds and also possibly an
industrial revenue note. HUD's decision on the grant application
will be known by April 1, 1983.
City Attorney Schaefer commented that tax increment financing helps
bring about projects that are not otherwise feasible - it is a method
of "last resort."
Upon questioning, Mr. Fay explained that the City is not liable for
any cost of consulting services by Professional Planning and Development.
That firm was chosen because of the successful experience of Dean
Doyscher in securing grant funds.
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COUNCIL MEETING
MONDAY, JANUARY 17, 1983
Carol Haukos, Executive Director of the Hutchinson HRA, spoke.
She stated that there is no demand for elderly housing in Hutchinson
at this time. A number of subsidized units have been built within
the past year and many of them have remained unfilled for a considerable
period of time.
Mr. Fay responded that this will not be subsidized housing and that
he believes low to moderate income families will fill the units.
The consulting firm will do a survey to measure need in preparing
the application.
There being no further comments, the public hearing was closed at
7:30 p.m. on a motion by Alderman Carls, seconded by Alderman Mlinar
and carried unanimously.
A motion was made by Alderman Carls, seconded by Alderman Mlinar
to approve the application for the small cities grant as proposed
by Frank Fray and Dean Doyscher/Tim Lemke. Motion was approved
unanimously.
A motion was made by Alderman Mlinar, seconded by Alderman Carls,
to waive reading and adopt Resolution No. 7329 agreeing to utilize
the services of Professional Planning and Development Company for
the CDBG application. Motion was approved unanimously.
A motion was made by Alderman Carls, seconded by Alderman Mlinar,
to waive reading and adopt Resolution No. 7330 authorizing submission
of the Small Cities Development Block Grant application. Motion
was approved unanimously.
3. ADJOURNMENT
The meeting was adjourned at 7:40 p.m. on a motion by Alderman
Mlinar, seconded by Alderman Carls and carried unanimously.
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