MONDAY, JUNE 18, 2018 5:30 P.M.

PRESENT: (Ch.) Paulsen, Bergenthal, Richard, Barker, Bruce (left at 5:35 pm), Evers Statz, Fuszard, Morris, Slavish (arrived at 5:35 pm)
ALSO PRESENT: Attoun, Davis, Michael Ellefson, Tom Ellefson, Ron Trachtenberg

Call Meeting to Order
Paulsen called the meeting to order at 5:30pm. Committee members introduced themselves and welcomed the new members. Bruce noted that he would need to abstain from item 2 due to a potential conflict of interest.

Minutes of March 19, 2018
Moved by Richard, seconded by Bergenthal, to approve the minutes of March 19, 2018. Motion carried (8-0).

1. Annual Election of Chair and Vice-Chair

Moved by Bruce, seconded by Richard, to re-appoint Paulsen as Chair and re-appoint Bergenthal as Vice-Chair. Motion carried (8-0).

Slavish arrived at 5:35pm. Bruce excused himself at 5:35pm.

2. Request for Support for Additional Developer-Financed Tax Increment Financing (TIF) #3 Assistance ($571,710) – Whispering Pines Condominiums, Pleasant View Rd.

Davis provided a detailed overview about the request for additional developer-financed TIF assistance from Ellefson Construction, Inc. to support the construction of workforce housing.

Ron Trachtenberg stated that the subsidy of TIF does two things: it makes the affordable units meet the affordability requirements and to complete the remainder of the project.

Slavish asked for details on the calculations for the affordable housing incentive. Michael Ellefson stated the cost to build these units is about $170,000. Ellefson stated that they have interested buyers at $179,900, but the buyers can’t find comparable sales that will allow for bank financing. The intent here is to rent these until they can be sold as condominiums.

Richard asked how long the condos will be rented. Ellefson estimated that in 3-4 years the intent would be to begin releasing them for sale on the market. She asked how this works relative to the ‘capitalized loss of rent’ calculation the City has used on other projects.

There are 64 units currently built. Of those, 32 units are renter-occupied currently.

Paulsen stated that this is a developer-financed TIF, and so the developer is taking the risk.

The rental price is affordable at 60% area median income (AMI) per the updated Dane County income limits, which lists the 60% affordable rent for a 2-bedroom unit at $1,239 per month.

Slavish asked why they are interested in selling the units rather than holding them for rentals. Trachtenberg stated that they are not in the rental business, they are in the condominium business.

Moved by Slavish, seconded by Fuszard, to support the request for TID #3 funding in the total amount of $736,710. Motion carried (8-0).

Adjournment—the Committee adjourned at 6:30 p.m.

Note: These minutes were prepared by Abby Attoun, Director of Community Development. These minutes are based on the notes of the recorder and are subject to change at a subsequent meeting.

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