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HomeMy WebLinkAbout1998 06-23 CCP Special Meeting on Shingle Creek Towers t CITY COUNCIL AGENDA CITY OF BROOKLYN CENTER SPECIAL MEETING Shingle Creek Towers 6221 Shingle Creek Parkway June 23, 1998 7 p.m. 1. Call to Order 2. Roll Call 3. Public Input on Boca Limited Partnership Proposal Regarding Purchase of Shingle Creek Towers 4. Resolution Giving Preliminary Approval to a Senior Housing Project on Behalf of Boca Limited Partnership, Authorizing Application for Allocation of Issuance Authority and Calling Public Hearing -Requested Council Action: - Motion to remove resolution from the Council table and decision on resolution. • 5. Adjournment • June 23, 1998k' Boisclair Corporation Shingle Creek Tower Proposal & Issues Summary PROPOSAL - Secure tax exempt bonds and tax credit necessary to recapitalize the property to afford: I. Property Stabilization - 1) Brick Repair $200,000 2) Window Replacement 250,000 3) Elevator Repair 30,000 4) Boiler Replacement 50,000 5) Electrical Repair 30,000 6) Parking Lot Resurface 40.000 Total Stabilization Expenditures $600,000 II. Property Improvements - 1) Common Area Expansion $550,000 (5,500 square feet) 2) Corridor Carpet, Lighting & Painting 60,000 3) Cabinet Replacement 110,000 4) Carpet Replacement 120,000 5) Appliances/Washer, Dryers 55,000 6) Landscaping 20.000 Total Improvements $915,000 III. Parking Garage - 60 Stalls 600.000 Total Rehab & Improvement Budget $2.115.000 ISSUES - Affordability of Rents: I. Fact - Shingle Creek Tenants experienced substantial rent increases in 1996 & 1997. r 996 1997 % Increa= Basic Rents 1BR - $303 Basic Rents 1BR - $340 $37 12% 2BR - 365 2BR - 402 $37 10% Market Rent 1BR - 362 Market Rent 1BR - 400 $38 11% 2BR - 437 2BR - 475 $38 9% Reason - To generate revenues to afford repairs Future - As the building continues to degrade due to its age additional substantial rent increases will assuredly be forthcoming under the existing FHA 236 program. II. Existing Tenants Assurance of Future Rent Affordability - Fact 1) HUD provides Section 8 Preservation certificates or vouchers to qualified low income 2 tenants. The tenant only pays 30% of his/her income while HUD pays the difference up to $595 for a 1 bedroom and $720 for a 2 bedroom. Preservation vouchers are special to projects that are pre - paying their project based assisted mortgages. While there is no guarantee federal government will annually renew the Preservation vouchers; however, historically, the government has annually renewed standard vouchers since their 1982 origin. Because assisted projects pre - payment has just been occurring only in the last 2 years we can however, take historic confidence the federal government will annually renew Preservation vouchers as it has for standard vouchers since 1982. In fact, congress appropriated an additional 8,000 Section 8 Preservation certificates /vouchers this fiscal year earmarked for pre - payments such as Shingle Creek. Fact 2) The Boisclair Corporation has preliminarily inspected the files and has determined 100% of tenants income qualify for Preservation certificates and therefore first year's rent will not change. Subsequent in depth individual consultation with each resident is necessary to verify our preliminary findings. Fact 3) No rent increase will occur the 1st year (during renovation) however, a $30 /month (1BR) and $36 /month (2BR) increase will occur. the 2nd year. Reason - We need to capitalize the improvement costs and this rent increase reflects only 2.5% effective annual increase over two years compared to the 9 - 12% increases already experienced by Shingle Creek residents. Fact 4) After renovation completion and the initial 2.5% effective annual rent increase Boisclair Corporation guarantees the existing residents rents will not increase greater than the Cost of Living Index (CPI) or 3% whichever is less. Fact 5) Existing & future tenants will not be required to pay extra for assisted living services. Services not covered by Medicare, Medicaid or County Assistance are merely voluntary and decided only by each resident whether or not to use the service for an additional charge, for example, maid service and meals. Fact 6) Currently the existing financing (FHA 236) can only afford part time on -site management - Boisclair Corporation will have full time on -site management and seek a grant from Minnesota Housing Finance Agency (MHFA) from funds available for a services coordinator that will work with the various health, community and governmental agencies to bring additional health, recreation and social services to Shingle Creek residents at NO ADDITIONAL COSTS TO THEM. Fact 7) Boisclair Corporation has a long and established track record providing affordable housing and is respected for its quality of housing services by MHFA and the cities in which it continues to maintain its affordable housing investment. ************* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** JUN 23 '98 15 =42 SHEEHY_COMPANIES P•2i2 SHINGLE CREEK TOWER PO Box 64562 ST PAUt_ MN 55164 -0562 Telephone 6121487 -6691 June 23, 1998 Mayor Myrna Kragnes Members of the City Counsel City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 Re' Shingle Creek Tower Dear Madam Mayor & Counselmembers; As Managing General Partner for Shingle Creek Tower Limited Partnership we encourage Brooklyn Center City Council to support Boisclair Corporation's tax exempt bond request that not only facilitates the sale of Shingle Creek Tower but more significantly the bonds afford the recapitalization needed to pay for the property's rehabilitation that is not possible with the existing FHA 236 financing. If, for whatever reason, the Boisclair proposal is not approved, we will pre -pay the present mortgage anyway and thereby eliminate this affordability FHA 236 retention issue and then sell to a market rate converter buyer or simply keep the property and convert to market rate ourselves. Sincerely, SHINGLE CREEK TOWER LIMITED PARTNERSHIP yr1 . heehy r General Partner CES/ll MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Brad Hoffman, Community Development Director DATE: June 22, 1998 SUBJECT: Shingle Creek Tower Apartments At the May 26th Council meeting, Mr. Robert Boisclair requested preliminary approval of his application for tax exempt bonding and Section 42 tax credits for the purchase and renovation of 6221 Shingle Creek Parkway. In total he requested $7,200,000 in bonding authority and $750,000 in tax credits. The Council carried over the meeting to June 23, 1998. At the Council meeting it was indicated that the City had not been approached by any non - profits about acquiring this property. In total five (5) or six (6) individuals/entities including non - profits contacted me about purchasing the Shingle Creek Tower apartments last fall. Non - profits that contacted me included Common Bond who was represented b Doug Mayo and was P Y g Y resent at the P May 26th meeting. All parties, including he non-profits that contacted me inquired about the availability g p q a ai ability of tax exempt bonds and/or tax credits to acquire and rehabilitate the property. Given our experience with other entities that used these tools (Earle Brown Commons and Summer Chase) in the past, I informed each of the parties that the use of tax exempts would most likely not receive staff support and would be a difficult decision for the Council but could apply for them. Mr. Boisclair was the only party to pursue the matter knowing the general staff position for the request. He was also the only party to have an option on the property. Mr. Boisclair has paid the $5,000 application fee and is very much aware that there is no guarantee that he will receive approval of his application. On the other hand, Mr. Boisclair's proposal differs very little, if at all, from that of the others I spoke with. All proposed to retain the building as a senior building, and all sought City approval of tax exempt financing tools. As a practical matter it makes little or no difference to the impact on current residents if the form of ownership is non -profit or for profit. Rents are regulated by federal guidelines. Rent increases would occur but would most likely not impact current residents. The future use or conversion of the building to senior assisted living would not be limited under either organization structure. said it was a team effort, including great support from the City Staff and officials, and expressed his • gratitude. 9i. RESOLUTION GIVING PRELIMINARY APPROVAL TO A SENIOR HOUSING PROJECT ON BEHALF OF BOCA LIMITED PARTNERSHIP, AUTHORIZING APPLICATION FOR ALLOCATION OF ISSUANCE AUTHORITY AND CALLING PUBLIC HEARING City Manager McCauley explained this item was tabled from the May 11, 1998, Council meeting due to the absence of the proposed developer. Mr. Boisclair addressed the Council and gave a background on providing affordable housing. He explained the Section 236 Program, Section 8, and the voucher system. He said his primary objective is to give confidence to the residents of Shingle Creek Tower that the housing will be affordable. He reviewed the preservation voucher with respect to availability for the residents. The rent will always be at 30% of their income; it will be annually adjusted based on the voucher system. Mr. Boisclair also addressed stabilizing the property. He explained the brick is in need of repair and there are leaking windows which need to be fixed. The rents need to be raised to bring in profit to stabilize a cash flow to do the necessary repairs. He also said it needs to be marketable. He said a garage unit is also proposed for the building, possibly underground. Mr. Boisclair explained there cannot be a full -time on -site manager under the Section 236 Program. He proposes to bring in a services coordinator, provided through a special grant program. This would enhance the program to provide assisted living. Councilmember Hilstrom raised the issue of assisted resident living and licensing. Mr. Boisclair said he would be working with an outside provider who is licensed. City Manager McCauley asked if the current tenant base has no need for parking or the proposed improvements, then what happens to the project. Mr. Boisclair responded that there is an outside grant provided by the State for the services coordinator. Councilmember Lasman inquired if there is a time line in which to apply for the grant. Mr. Boisclair answered that he is uncertain, but it is probably based on use. Councilmember Hilstrom asked what is the breakdown of the $7.2 million which he is requesting. Mr. Boisclair responded that $4.3 million is the purchase price; $1.5 million rehab; $600,000 improvements; and the rest is closing /financing costs. Councilmember Hilstrom inquired if Class 41) funding would be used. Mr. Boisclair responded affirmatively. 5/26/98 -12- City Council Minutes Community Development Director Brad Hoffman said the current value of the property is just over $3 million. City Manager McCauley inquired if the survey of residents had been completed. Mr. Boisclair responded that it is progressing, but not complete. Councilmember Hilstrom raised the question of what happens to the residents if the voucher program ceases. Mr. Boisclair said historically the Federal government has budgeted for the vouchers every year, but there is no guarantee. RECESS The Council recessed at 9 p.m. and reconvened at 9:07 p.m. Mayor Kragness opened the meeting for public comment. Patricia Carias, resident of Shingle Creek Tower, said she is in full support of the proposal, but asked when it would be in writing. She inquired if the owner would seek tenants who could pay full market rent. Mr. Boisclair explained there is an income limit under the tax credits being sought. Douglas Mayo, Director of Housing Development with CommonBond Communities, explained CommonBond Communities is a non - profit provider of affordable housing. He wanted to clarify the preservation vouchers. The vouchers go with the resident; if the resident dies, the affordable unit is lost. He expressed no confidence in the renewal of preservation vouchers. He urged the Council to look at other options. Sarah Tellevik, resident of Shingle Creek Tower, said Mr. Boisclair's company is not listed with the Secretary of State's Office, and he does not have a license to operate a nursing home or assisted living. She is not interested in the proposed improvements and is concerned about the building being turned into a nursing home. She asked what is in it for the City, how would the City benefit. Mr. Boisclair advised that the corporation would be formed if the request was granted. Mayor Kragness responded that the City doesn't benefit, and the City Council is responsible for approving this request. She added that hopefully it will be the tenants that will benefit. Councilmember Hilstrom asked the City Manager to summarize why there is no staff recommendation on this item. City Manager McCauley explained that the initial recommendation of City staff was denial. Mr. Boisclair's letter of March 24 addressed several concerns and shifted City staffs recommendation 5/26/98 -13- City Council Minutes to a neutral state. He explained the three options that are available for this building. Donald Floodeen, resident of Shingle Creek Tower, raised concerns about the affordability of the units and explained he has high medical costs and lives on Social Security. Councilmember Hilstrom said there have been two separate non -profit agencies at the meetings, and she is greatly concerned that the senior subsidized housing be retained. City Manager McCauley recommended that the Council not adopt the resolution if there were still questions and concerns by Council and public discussion and input were still needed since adoption of the resolution would authorize the developer to expend funds and basically commit the City to the issuance of bonds notwithstanding the preliminary title of the resolution. There was a motion by Councilmember Hilstrom to deny the recommendation and request that staff and Mr. Boisclair discuss affordable housing. Councilmember Peppe seconded the motion, amending the motion to request that the resolution be tabled until the Metropolitan Council report is complete and tenant surveys are submitted. Councilmember Carmody recommended that a special meeting be set at Shingle Creek Tower to receive further public input on this issue. The motion by Councilmember Hilstrom, seconded and amended by Councilmember Peppe, was amended as follows: the resolution be tabled indefinitely and a special meeting be set at Shingle Creek Tower to obtain further input on the proposal. The motion passed unanimously. 9j. CODE ENFORCEMENT UPDATE City Manager McCauley said the Neighborhood Liaison will begin on June 1. A review of the community is scheduled to start June 8. There have been a great number of animal complaints this year. The Neighborhood Liaison will start in the Northeast section of the City with a systematic review, the Southeast section was the starting point for the past two years. He indicated residents can call the main City Hall phone number, 569 -3300, with code issues, and there also is established a code hotline. 9k. RESOLUTION APPROVING SECTION 28 OF CHAPTER 389 OF THE LAWS OF MINNESOTA 1998 - BROOKDALE SPECIAL TAXING DISTRICT City Manager McCauley explained this is one of the pieces of legislation passed this ear, and State Y ex P P g , P Y Law requires the local authority to approve such special legislation. 5/26/98 -14- City Council Minutes MEMORANDUM TO: Michael J. McCauley, City Manager FROM: Brad Hoffman, Community Development Director DATE: May 6, 1993 SUBJECT: Resolution Giving Preliminary Approval to a Senior Housing Project on Behalf of Boca Limited Partnership, Authorizing Application for Allocation of Issuance Authority and Calling Public Hearing The resolution before the Council gives preliminary approval for a tax exempt bond issue to purchase the Shingle Creek Tower (6221 Shingle Creek Parkway) and rehabilitate the same. The resolution also calls for a public hearing of the issue on June 8, 1998. The applicant, Boca Limited Partnership, is requesting authority to issue $7,200,000 in housing revenue bonds. They would also be seeking Section 42 Tax Credits in the amount of $750,000 for the project which means that 40% of the units have to be occupied by residents whose income is no more than 60 percent of the areas median income level. • With the original application, pg on, staff had concerns with the urchase rice of the p p complex. The price tended to be at the high end of the market. There was also some concern relative to the developer's equity position. Mr. Boisclair has addressed these concerns as well as some others including past developments of his. His response is attached in the letter dated March 24, 1998. The developer /owner would continue to maintain the building primarily as a senior building. The bonds, if approved do not constitute a debt obligation of the City. The bonds are backed solely by the value of the real estate in question. Attached you will find correspondence from the developer along with his per forma. Mr. Boisclair will be present to answer the Council's questions Monday evening. Member introduced the following resolution and moved • its adoption: RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO A SENIOR HOUSING PROJECT ON BEHALF OF BOCA LIMITED PARTNERSHIP, AUTHORIZING APPLICATION FOR ALLOCATION OF ISSUANCE AUTHORITY AND CALLING PUBLIC HEARING WHEREAS, Boca Limited Partnership, a Minnesota limited partnership to be formed (the "Borrower ") has submitted an application to the City requesting revenue bond financing for a project sect (the Project) generally described as the acquisition and rehabilitation of a 122 -unit residential rental facility for senior citizens known as Shingle Creek Tower at 6221 Shingle Creek Parkway in the City, to be owned and operated by the Borrower; and WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act "), the City is authorized to issue its revenue bonds to finance all or part of the cost of the Project, following the adoption of a housing finance program after a public hearing; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that: 1. The Project and the issuance of revenue bonds therefor in an amount up to approximately $7,200,000 are hereby given preliminary approval by the City, subject to the mutual agreement of the City, the Borrower and the initial purchaser of the bonds as to the details of the bonds and provisions for their payment. In all events, it is understood, however, that the bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any of the City except the City's interest in the loan property tY P Y agreement with the Borrower and the Project, and the bonds, when, as, and if issued, shall recite in substance that the bonds, including interest thereon, are payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. 2. As required by the Act and by Section 147(f) of the Internal Revenue Code of 1986, as amended, this Council will conduct a public hearing on the Project, the housing financing program, a draft of which is on file with the City, and the proposal to issue the bonds therefor. The hearing will be conducted on Monday, July 27, 1998, at 7 p.m. The City Manager is authorized to cause notice of the hearing to be published and the draft housing program to be submitted to the Metropolitan Council for review as provided in the Act. RESOLUTION NO. • 3. The Borrower may incur expenditures on the Project prior to the issuance of the bonds therefor, and such expenditures may be reimbursed from proceeds of the bonds, when issued. This resolution shall constitute an "official intent" to reimburse such expenditures for purposes of Treasury Regulations, Sections 1.103- 8T(a)(5) and 1.150 -2. 4. The City Manager is authorized and directed to prepare and submit an application to the Minnesota Department of Finance for an allocation of issuance authority for the Project and the bonds to be issued therefor, pursuant to Minnesota Statutes, Chapter 474A, as amended. Upon receipt form the Borrower of the amount of any required application deposit and application fee, the City shall issue its check or checks to the Department for the amount of the application deposit and application fee. Upon any refund of the application deposit to the City, the City will in turn refund the amount received to the Borrower. 5. The law firm of Kennedy & Graven, Chartered is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents relating to the Project and bonds issued in connection therewith. The City Manager and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. 6. The Borrower has agreed to pay directly or through the City any and all cost incurred by the City in connection with the Project, whether or not the project is carried to completion, and whether or not the bonds or operative instruments are executed. 7. All commitments of the City expressed herein are subject to the condition that by December 31, 1998, the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the loan agreement, the bonds and of the other instruments and proceedings relating to the bonds and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the bonds are not sold within such time, this Resolution shall expire and be of no further effect. 8. The adoption of the Resolution does not constitute a guaranty or firm commitment that the City will issue the bonds as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the bonds, or issue the bonds in an amount less than the amount referred to herein should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue • the bonds, or to issue the bonds in an amount less than the amount referred RESOLUTION NO. • to in paragraph 1 hereof, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof. and the following voted against the same: whereupon said resolution was declared duly passed and adopted. i �o �d �o �r • mv AWW DEVELOPING QUALITY INVEST.IIENTS IN REAL ESTATE March 24, 1998 Mr. Brad Hoffman City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, Minnesota 55430 • RE: Shingle Creek Tower Tax Exempt Bond Inducement Request Dear Brad: Thank you for the opportunity to meet with Mr. Mike McCauley and yourself last week discussing our bond inducement request from the City of Brooklyn Center in behalf of our planned acquisition and rehab of Shingle Creek Tower. Hopefully the following responds satisfactorily to your questions and concerns allowing us therefore to timely proceed with staff support for our tax exempt bond inducement proposal. .1. EXISTING RESIDENTS AFFORDABLE HOUSING PRESERVATION - Although we have not yet conducted a tenant survey, my expectation is virtually all the existing tenants will income qualify for what is called "sticky vouchers" commencing 60 days after the pre- payment by the seller of its FHA insured mortgage. Sticky vouchers is a direct tenant subsidy of the differential between the new market rent and the tenant paid rent portion which is provided by the federal government and administered by the local or county housing authority. The housing authority shall receive a fee for administering the vouchers. Sticky vouchers are expected to be annually renewed permitting the existing i 3005 OTTAWA AVE. • ST. LOUIS PARK, MN _ -2206 • PHONE: (612) 922 -3881 • FAX: (612) 922 -3071 resident to remain in place until he /she voluntarily decides to move. • After the purchase closing the initial 60 day gap without sticky voucher subsidies, the tenant rent will not change with the buyer covering the gap cost. With respect to future affordable rents our bond application intends to qualify 40% of the units for IRC Section 42 tax credits. Thirty one (31) one bedroom and eighteen (18) two bedroom rents will be $63 and $137 respectively per month lower than our market rents for similar units. 2. RATIONALE FOR THE OSTENSIBLE SELLER/BUYER VALUE CONTRADICTION - The seller built the project in 1973 under the FHA 236 interest rate reduction subsidy program when the primary investment incentive was accelerated depreciation deductions from income unrelated from the project that was permitted prior to the 1986 Tax Reform Act. There is no remaining economic incentive for the seller to continue owning the property, the tax benefits have been long gone and the Section 236 regulations permit minimal, if any, cash distributions. Enclosed is the seller's 1996 independent financial audit which validates the foregoing. Please note no distribution (see page 13) was authorized in 1996. Capitalizing the $21,000 cash flow by say 8% which is optimistic, results in an insignificant $262,500 equity when added to the existing debt of $1.4 million . ($1,662,500 total FHA 236 restricted value) the seller is justified in seeking a real estate tax reduction as long as the existing severely regulated FHA 236 program remains in • place. The seller must make efforts to minimize project expenses (i.e. real estate taxes, etc.) in order to squeak out the minimal authorizable $21,000 annual distribution. Alternatively, the buyer sees an opportunity to purchase the property at a price definitely not supportable under the existing FHA 236 regulatory constraints however, is clearly justified if the property is converted to market comparable rents. You will recall at our initial meeting we provided you an Economic Rental Analysis prepared by Kraemer Geisler & Strand, Appraisers that was conducted in behalf of a similar building we own located in your neighboring community, Brooklyn Park. This study's market rents give us the confidence they can also be attained in Brooklyn Center's Shingle Creek Tower especially after the contemplated rehab is finished. Obviously, our preliminary market rent assumptions will be further scrutinized for validity by not only us but also by the intended first mortgage bond financed credit enhancer, FNMA. It is also noteworthy our purchase price ($35,457/d.u.) is substantially below replacement cost (approximately $75,000 /d.u.), which provides assurance new construction competition is remotely in the distant future. Meanwhile, our aging seniors population continues to expand faster than the general market percentage wise which is demonstrated by the acute low I% vacancy in senior designed facilities, compared to the general market's 2% vacancy. Apartment Search 4th quarter 1997 reported 1.9% general occupancy vacancy for Brooklyn Center. • 3. REHABILITATION WORK PLANNED - Preliminarily, subject to subsequent in depth study with respect to need and cost, the following improvements are contemplated: 3 1) Common Area Expansion - 5,500 square ft. ($100 /s.f.) $550,000 • 2) Window Replacement 120,000 3) Boiler Replacement/HVAC Upgrade 95000 4) Elevator Repair & Upgrade 30000 5) Corridor Carpet, Lighting & Painting 60000 6) Roof Replacement 60,000 T) Cabinet Replacement 110,000 8) Carpet Replacement 120,000 9) Electrical Upgrade 30,000 10) Appliances 55,000 11) Parking Lot Resurface 40,000 12) Landscaping 20,000 13) Contingency 40.000 Total Rehabilitation ($10,902/d.u.) $1,330,000 60 Stall Heated Garage 600.000 Total Construction ($15,820/d.u.) $1,930,000 You will note we increased the rehab budget by $330,000 since our original submission based on subsequent need discovery. Relative to residents quiet use of their apartments and facilities during construction be assured all proper - ieasures (temporary walls, vinyl taped enclosures, etc.) will be taken to isolate construction areas from � pacting as close to normal functioning of the building as possible. Temporary relocation if needed will provided at our cost within the building in purposely held vacant units to accommodate the time when wormers need full and access to the apartment under renovation. You will note we have an operating deficit reserve set aside in our pro forma expressly for this purpose. With respect to time to complete the construction work we estimate 12 months. 4. ASSISTED LIVING SERVICES - It is our intent to initiate assisted living services gradually as demand warrants for the listed service ce detailed in the questionnaire attached. Initially we would begin with an outside health care provider and integrate additional services as they are required by the existing residents who are assumed to afford only what Medicare, Medicaid and County Assistance will cover. Future residents presumably with more disposable income will require additional services not covered by Medicare and the physical facilities will be in place to provide them. Meanwhile, the on -site manager shall also function as services coordinator of community based outreach, social, recreational programs (i.e. meals on wheels, etc.) to raise the living enjoyment for the existing tenants who otherwise could not afford it. Our mission for providing assisted living services is to enhance our senior residents lives and extend their stay and perhaps avoid altogether their need to go to substantially more expensive nursing home. Consisting of fully equipped commercial kitchen, library, social activities and exercise room, green house, nurses station, billiard room and beauty shop including Wa and `olures ,or the foregoing. A feasibility study will determine whether to delete t st floor residential units to create h building (Perhaps Bate t e expansion space or build the expansion as a free stanein 9 9 (pe ps one level atop the above grade 60 stall garage) internally linked to the apartment building. 5 - DEFAULTED MORTGAGES DESCRIPTION - • altier Plaza 175 East Fifth Street. S t. Paul. Min nesota, is a mixed use project consisting of approximately 320 apartment units, 110 condominiums, 130,000 square feet retail, 100,000 square feet office and an 800 stall underground parking ramp. Development work began in 1981 when urged by the City of St. Paul to undertake the project to preserve a $5 million UDAG grant that was about to be lost. This was a time of extremely high inflation (12% - 15% in the building trades) and high interest rates (prime at 21 % in 1982). In addition to the UDAG, the St. Paul Port Authority provided approximately 40 millio pP y $ n of tax exempt bonds (14.5% rate) to build the parking ramp, retail and office. Subsequently, Chemical Bank provided approximately $55 million for the apartments and condominiums. An initial equity of 14 million ion was secured from limited partners structured under the 15 year accelerated tax write off available to commercial properties. Chemical Bank in 1984 -85 refinanced the Port Authority bonds resulting in lowering the rate from 14.5% to low floating rates of 4% to 5 %. During the spring of 1985, just one month prior to our going back to the equity markets to place the final $16 million tax advantaged equity offer, Senator Robert Packwood (Oregon) announced his plans to author legislation repealing the 15 year write off capability which ultimately led to the 1986 Tax Reform Act. Packwood's announcement irrevocably eliminated the tax advantaged equity markets and thus became the principal cause of our eventual default, tacking sufficient funds to complete the project. In 1987, we entered into a deed -in -lieu of foreclosure with Chemical Bank. The City of Saint Paul lost the UDAG and $2 million Lowertown Redevelopment grant as a result of the larger and prior secured debts however, the roject contributes p � approximately $2 Million PP Y annually in property taxes. Despite this adversity and losses experienced, the city has nevertheless deemed our relationship favorably, recognized by the fact it provided a $2.9 million bond allocation in 1997 for our acquisition and rehabilitation plans of Hampden Square Apartments. We invite you to call Mr. Thomas Sanchez, Development Director for St. Paul - 266 -6617. The Glen. located in Minnetonka.. is a 110 unit, $12 million condominium built in 1982 and financed by First National Bank of Minneapolis that experienced extremely slow sales in a hostile condominium market over seven years. We entered into a work -out arrangement with the bank that required the sponsors to pay S1 million of a $3 million deficit which represented our capacity to pay at that time. Our relationship with First Bank (now U.S. Bank) has been re- instated recently after a six year hiatus. It was stated to us notwithstanding the bank's losses it recognized our earnest efforts to stay with the project thru the seven years it took to finally sell the condominiums out when most other sponsors they experienced would have long ago simply turn over the keys to the 5 failing project. U.S. Bank is currently considering a $13.5 million bond related tax credit • transaction with us. We invite you to call Mr. Paul Bauer, Vice President - 647 -3509. Riverp Phase 11. 6.5 acres,_East Henneoin Minneapolis. MN. In 1984, we borrowed $2 million from the International Brotherhood of Electrical Workers Local 292 (IBEW) to purchase land in anticipation of building a Riverplace Phase II mixed use project. The project never proceeded due to the same negative market conditions precipitated by the 1986 Tax Reform Act. Not able to perform pursuant to our development contract, we entered into a settlement agreement with the City of Minneapolis that required us to deed over the property to the city in exchange for relinquishment of performance letters of credit it held. The city agreement precipitated the need for a work -out agreement with IBEW that has been timely paid resulting in total pay off on September 30, 1997. For a reference, please call Mr. Glen Wehr, IBEW 292, Financial Advisor - 841 -3950. We have enclosed also for your review the revised Pro Forma reflecting the additional $330,000 rehab work. Hopefully, the foregoing is responsive to your questions and concerns expressed at our meeting permitting the City of Brooklyn Center to support our bond inducement proposal, however; If there are any other questions please do not hesitate to call. Sincerely, i Robe J. Boisclair President RJB:Ih cc: Mike McCauley, City Manager Encl: 1996 Audit Questionnaire Pro Forma i �d v� �a Oo �v DEVELOPING DUALITY INVESTMENTS IN REAL ESTATE Brad Hoffman May 5, 1998 Community Development Director City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center MN 55 Y 430 Re: Shingle Creek Tower Tax Exempt Bond Dear Brad: Application Fee Thank you sincerely for accepting a re- application for Housing Revenue Bond financing in behalf of Shingle Creek Tower's acquisition and rehabilitation. Since our March 24th letter we discovered serious masonry problems with conditions causing the exterior brick to spall and crack posing potential hazards from falling brick pieces. We therefore, budgeted an additional $200,000 (81,530,000 new total rehab) to replace, tuckpoint, vent and seal coat the entire exterior masonry veneer. Also, you will note we slightly reduced rents resulting from a recent market analysis refinement and a desire to stay within 120% of HUD's "Fair Market Rent" determination for the area. This year's state legislature changed the bond allocation procedures from merely a "lottery" to a "priority" scheme biased in favor of affordable rents. We are endeavoring to understand the implications of the changed bond allocation law in order to be most competitive to successfully attain the needed bond authority next January. Most certainly we will keep you advised when the regulatory procedures are defined and finalized. Meanwhile, due to the significantly greater rehab that is required than originally planned, as a result we now qualify for FHA's Substantial Rehabilitation Program that provides 40 years amortization in order to afford the greater amount of rehab required. The revised bond amount requested for inducement is 87.2 million (originally $6,880,000) which is detailed on page 8 of the enclosed FHA Sub Rehab Pro Forma. With respect to the resolution earlier prepared by the Kennedy Graven law firm, except for the hearing dates and the bond amount everything else remains the same. 3CC5 OT T AWA AVE. • ST. LOUIS PARK, MN 55416 -22C6 • PHONE: (612) 922 -3881 • FAX: (612) 922 -3071 7 • Thank you again for your consideration in accepting this re- application for the City of Brooklyn Center' bond inducement request in behalf of our Shingle Creek Tower acquistion and rehab plans. If you have any questions please do not hesitate to call and also advise us when the City Council will be hearing this request. Yours cordially, BOISCLAIR CORPORATION Robert . Boisclair President RJ H: Ih e ncl. Bond Application pp n X5,000 payment FHA Sub Rehab Pro Forma i CITY OF BROOKLYN CENTER, MINNESOTA • PROGR,kM FOR A MULTIFAIMILY HOUSING DEVELOPMENT Pursuant to Minnesota Statutes, Chapter 462C (the "Act "), the City of Brooklyn Center, Minnesota (the "City ") is authorized to develop and administer programs to finance the acquisition and rehabilitation of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for multifamily housing developments may be financed by revenue bonds issued by the City. The City has received a proposal that it approve a program providing for the acquisition and rehabilitation of a 122 -unit residential rental facility for senior citizens known as Shingle Creek Tower at 6221 Shin Creek Parkway in the City, by Boca Limited Partnership, a Minnesota limited partnership (the "Owner "). The acquisition and rehabilitation of the Project is to be funded through the issuance of up to $7,200,000 in revenue bonds to be issued by the City (the ). The Owner will own and operate the Project as a senior residential rental project. It is estimated that rents for the Housing Units will range from 5595 per month to $630 per month for one - bedroom units and 5720 per month to $750 per month for two- bedroom units. The City, in establishing this multifamily housing program (the "Program "), has considered the information contained in the City's comprehensive plan. The Project will be acquired and rehabilitated in accordance with the re uirements of Subdivisions 1 and 2 of q i Section 462C.05 of the Act. Section A. Definitions. The following terms used in this Program shall have the following meanings, respectively: "Act" shall mean Minnesota Statutes, Chapter 462C, as currently in effect and as the same may be from time to time amended. "Bonds" shall mean the revenue bonds to be issued by the City. "City" shall mean the City of Brooklyn Center. Minnesota. "Housing Unit" shall mean any one of the apartment units, each located in the Project, occupied by one person or family, and containing complete living facilities. "Land" shall mean the real property upon which the Project is situated. "Owner" shall mean Boca Limited Partnership. a Minnesota limited partnership. "Program" shall mean this Program for the financing of the Project pursuant to the Act. "Project" shall mean the residential rental housing development consisting 'of approximately 122 Housing Units, to be acquired and rehabilitated by the Owner. D l ROUSLNG PACCIR .`V Section B. Procam For Financing the Proiect. It is proposed that the City establish this . Program to provide financing for acquisition and rehabilitation of the Project at a cost and upon such other terms and conditions as are set forth herein and as may be agreed upon in writing between the City, the initial purchaser of the Bonds and the Owner. The City expects to issue the Bonds as soon as the terms of the Bonds have been agreed upon by the City, the Owner and the initial purchaser of the Bonds. The proceeds of the Bonds will be loaned to the Owner to finance the acquisition and rehabilitation of the Project, to fund required reserves and to pay the costs of issuing the Bonds. It is expected that a trustee will be appointed by the City to monitor the rehabilitation of the Project and the payment of principal and interest on the Bonds. It is anticipated that the Bonds will have a maturity of approximately thirty (30) years and will bear interest at a variable rate or at fixed rates consistent with the market at the time of issuance. The City will hire no additional staff for the administration of the Program. Insofar as the City will be contracting with underwriters, legal counsel, bond counsel, the trustee and others, all of who will be reimbursed from bond proceeds and revenues generated by the Program, no administrative costs will be paid from the City's budget with respect to this Program. The Bonds will not be general obligation bonds of the City, but are to be paid only from properties pledged to the payment thereof, which may include additional security such as additional collateral, insurance or a letter of credit. Section C. Local Contributions To The Program. The Owner has not requested any local contributions to the Program with respect to the Project. It is anticipated that the Owner will seek tax credits with respect to the Project. Section D. Standards and Requirements Relating to th e FinancinR of the Proiect Pursuant to the Program.. The following standards and requirements shall apply with respect to the operation of the Proiect by the Owner pursuant to this Program: (1) Substantially all of the proceeds of the sale of the Bonds will be applied to the acquisition and rehabilitation of the Project and to the funding of appropriate reserves. The proceeds will be made available to the Owner pursuant to the terms of the Bond offering, which will include certain covenants to be made by the Owner to the City regarding the use of proceeds and the character and use of the Project. (2) The Owner, and any subsequent owner of the Project, will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex marital status or status with regard to public assistance or disability. ( The Project is designed primarily for rental to elderly persons. Thus, Section 462C.05, Subdivision 5 of the Act provides that the limitations set forth in Section 462C.05, Subdivision 2 of the Act are not applicable. Nevertheless, it is expected that at least twenty percent (20 %) of the Housing Units will be held for occupancy by families or individuals with gross income not in excess of fifty percent (50 %) of median i family income, adjusted for family size. This set aside would satisfy the low-income 9 "�iJC `AOoU2 "AC CSivKUGR�..i. 2 HOVINC PROCRAM occupancy requirements of Section 462C.05, Subdivision 2 of the Act, if they were • applicable. ( The Project, is designed to be affordable by persons and families with Adjusted Gross Income not in excess of the greater of (a) 110 percent of the median family income as estimated by the United States Department of Housing and Urban Development for Hennepin County, or (b) 100 percent of the income limits established b the Minnesota Housing Finance Agency for the City and by other persons and families to the extent determine d to be necessary by the City in furtherance of the otic of. economic integration. P Y Section E. Evidence of Compliance. The City may require from the Owner, at or before the issuance of the Bonds, evidence satisfactory to the City of the ability and intention of the Owner to complete the acquisition and rehabilitation of the Project, and evidence satisfactory to the City of compliance with the standards and requirements for the making of the financing established by the City, as set forth herein; and in connection therewith, the City or its representatives may inspect the relevant books and records of the Owner in order to confirm such ability, intention and compliance. In addition, the City may periodically require certification from either the Owner or such other person deemed necessary concerning compliance with various aspects of this Program. Subsection F. Issuance of Bonds. To finance the Program authorized by this Section, the City may be resolution authorize, issue and sell revenues bonds in an aggregate principal amount • of up to approximately 57,200,000. The Bonds shall be issued pursuant to Section 462C.07, Subdivision 1 of the Act, and shall be payable primarily from the revenues of the Program authorized by this Section. The costs of the Project, includin g costs of issuance of the Bonds and required reserve funds, are presently expected to be approximately 57,200.000. The costs of the Project may change between the date of preparation of this Program and the date of issuance of the Bonds. The Bonds are expected to be issued prior to June 1, 1999. Section G. Severabilitv. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City or otherwise illegal or inoperative by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. Section H. Amendment. The City shall not amend this Program., while Bonds authorized hereby are outstanding, to the detriment of the holden of such Bonds. Section]. State Ceiling. Up to $7,200,000 of the state ceiling for private activity bonds, pursuant to Section 146 of the Internal Revenue Code of 1986, as amended, and Chapter 474A of Nlinn.esom Statutes, will be applied for with respect to the Bonds. �`ASC.OL " 2a`i DOC 3 HOUSLNG FROO-AA f Materials Received from Concerned Citizens May 22, 1998 • To: Mayor and City Council members I have lived at Shingle Creek Tower for 41 years. I am a home health aid and have throughout the years /worked with many of the residents living here. Being so much a part of Shingle Creek Tower has been a rewarding experience for my and I. Not only have we been able to make wonderful friends and warm relationships with neighbors and clients. The rent has been quite a.blessing! It has helped me become more self - sufficient in supporting.my daughter and myself. My heart and greatest concern goes out to my friends, neighbors and clients residing here at Shingle Creek Tower.' Many are living on SSDI and their income is very low. If'the. rent goes up *to market rent or beyond, many people here will have to leave with no place to go. Many of the disabled and elderly do *not quite understand what is exactly going on. They are not aware that if Mr. Boisclair purchases this building and. puts in additions, such as a kitchen, enlarged lobby for dining, indoor garden, whirlpool, library, beauty shop .etc. etc. He also plans on sky rocketing -the rent. A lot of these things are really ridiculous as there is a mall across the street with two beauty shops and the civic.center is right next door. on the north side -of the building across from the parking lot. Why isolate the elderly any more than they already are? Some may have no family or relatives left, but still can get out to the beauty shops, Brookdale etc. Some enjoy going to the civic center for. swimming 2 - 3 times a week. Some .enjoy going to the library next door and just getting outside of the building for a change of pace ... going to the mall to get their hair done and window shop does wonders for those who. can't get out .very often. ` Why obligate the disabled and elderly to something they don't want? Please do not give money to Mr. Boisclair. I strongly urge you to consider a non - profit for the purchase of Shingle Creek Tower. Thank you, ��� 4c4W d - adut9� - 5F�5 i Sarah J. Tellevik Shingle Creek Tower 6221 Shingle Creek Parkway 1008 TO THE MAYOR AND COUNCIL PEOPLE., I LIVE AT SHINGLE CREEK' PARKWAY. I WOULDN'T LIKE TO HAVE A BEATI SALON A LIBRARY A POOL A'GARDEN, BECAUSE THERE'S A POOL IN RIGHT ACROSS THE STREET. THERE'S A LIBRARY ACROSS THE STREET. AND A BEATI SALON AT BROOKDALE. AND YOU CAN GET PLANTS ANYTIME SO IT WILL BE LIKE A GARDEN BUT INSIDE. OH I FOREGOT ABOUT UNDERGROUND PARKING,, WHY WOULD YOU DO THAT WHEN THE CREEK'WATER'WILL SEEP THROUGH'THE WALLS. I LIKE A NEW PERSON OWNING. THE BUILDING BECAUSE THE PRICES WILL GO HIGHER* IN ANOTHER YEAR AND THE NEW OWNER DOESN'T WANT KIDS LIVING HERE WELL I'M A KID AND DON'T THINK THE BUILDING IS SO BAD EXCEPT FOR SOME OF THE OLD PEOPLE. I'M TEN YEARS OLD AND I USE THE LIBRARY FOR MY HOMEWORK; I USE THE CIVIK CENTER FOR EXERCISE FOR FEILD DAY (EVENTS LIKE HE 100 YARD DASH AND MORE EVENTS SO YOUR CLASS CAN WIN),.. THANKS SHALEAH TELLEVIK. May 24, 1998 Dear Mayor and City Council Members,. I am an elderly resident at Shingle Creek - Tower. I've lived here for a few years- and am paying a lot for my one -bed room apartment now. - - „ My income has just recently dropped down - — - -- - - - -- $200.00 —.L._ cannot -- afford_ --to- Pay - -any _.more_ -- -- -- - - - - -- - than what I'm paying now. I'm concerned about what is going to happen o me as well - as my neighbors if Mr. _ purchases this building.. Please .consider a non - profit buyer- for Shingle Creek Tower. Sincerely, Leonard Kenow - - -- -- 6221 Shingle Creek Pkwy #702 �amp9 Pia cue .mad - � s�.e��e �wm12 emu, E ca& N-A • �rrti . .- 'r - � �•� ..i. i,`.,, •, i.. I,V..� t,,. va�••+V'v . -.VV rU(1. GJr rJrV l[.!•sGHll r CommonBond Commonaond Communities Board of Directors Man Ma(knt a A,hloii, i Ni May 28, 1998 Poo tk-ll c oro IMS111 The Honorable Myrna Kragness wllhmlt t'rilt Mayor of the City of Brooklyn Center Lllrn Brown 3401 63rd Ave No. A "' CLAP " ""' Brooklyn Center, MN 55429 ►"hn as Dolan' Anita Duckur joxph Duck-u• Re: Shingle Creek Towers Kubett Gaertner Pu:wr Hugh Gllinurc Dear Mayor Kragness: Msgr. Jame; Hahiger aishop Marl: Ilamwn Both House Speaker Carruthers and residents at Shingle Creek Towers have Gcontr Hicks, Chair" encouraged CommonBond Communities to indicate its interest in Shingle • C onnir Kn ight' Creek Towers. While it would not be appropriate for CommonBond Vonald Krainhtiger Communities to intervene in the existing purchase agreement for that George ),&m Kama Muit(iz I yon' property, we are concerned about the shortage of affordable housing in the lug Kevin Mc(%Nn:u,h Twin Cities metropolitan area and support initiatives to develop affordable John Murphy housing or preserve existing affordable housing resources. We frequently of Grabanski Pohlad serve as a community resource to assist Minnesota municipalities in John s leger achieving their affordable housing goals. Thomas Swain 1;rnry Yctzcr Since its founding twenty -six years ago, CommonBond Communities has mAnian, tW;iin, become highly skilled at providing affordable housing and support services to Of Caunsd thousands of lower income seniors, families, and persons with special needs. •t.«utive Committee Today, 3,400 people live in 2,400 CommonBond managed housing units. These affordable rental units are located in thirty - five housing communities in Commongond services twenty - five municipalities in and around the Minneapolis - St. Paul j ` - <p h prri metropolitan area. Rodjuhnson Barbara Kilbourne, Chair Richard McCarthy CommonBond Communities is interested in seeing Shingle Creek Towers John Murphy continue to offer affordable housing for the long term. If we can assist you 161 Sorrnek to preserve this valuable community resource, please call me at 290 -6245. Patncis Wilder lirnry Y; r,cr erely i Commonsond Housing William Stilt Joseph lirriyn Doug] s Mayo Flicn Iliggiru, Ch air Direct of Housing Development John Hornier Gcor c Lanz Enclosures 0 cc: Representative Philip Carruthers Annual Cotholic Celebrating 25 Years Appeal 328 Keno Boulevard West • St. Paul, Minnesota 55102 -1900 phc)rte (61 2) 291 -1750 • fax (612) 291 -1003 web site www.comtnonbond.orn An dquat Opparturtityl.Affi Action Or atni,otum Thursday, May 28,1998 To the Brooklyn Center City Council: O ftcr last Tuesday's Council meeting, I could not get to sleep until 5:00 am because of the proposals Mr. Boisclair has in mind for Shingle Creek Towers. He keeps using the term "affordable ". "Affordable" for who? He also, uses the cost of a nursing home as a comparison. Well, if he intends to turn this into a nursing home/assisted care facility, what is going to happen to the garage he plans on building? How many people who need assisted care can or should be driving? Is this just more of his "double messages "? What sense does it make to have a beauty shop when there is one across the street � Y P ,and several at Brookdale. What sense does it make to have a library here. Does he not know the building ext door oor to the south of us is a library? . Part of his plan is to have a closed circuit security system. This would require rewiring the whole building. In the process of rewiring the building he intends to have a separate meter for each unit as an "incentive for conserving electricity ". More electricity would be conserved without this type of system, because this system involves turning on the television to view who is requesting entry. The simple "voice" system we have now is all that is needed. You, as a Brooklyn Center City Council member, can help him conserve public funds by NOT approving any plan Mr. Boisclair should submit to you for your approval. As he pointed out when questioned at the council meeting the plan he submitted was only one possible plan. One reason, the "nonprofit organizations" have not come forward, is because one of the residents (whose name !Chown to me, but will be revealed only if required) was asked to call these organizations and inform them that 3r. Boisclair was going to buy the building, as if to imply it would be a waste of time for them to pursue the matter an further. After Aft the Y meeting-on Tuesday, May 26, this person confided in me that he is now neutral. It was good/great to hear the questions from the council members. Too many people here are taken in by Mr. Boisclair and are unable or unwilling to see that he has no authority to promise us the vouchers will be available to us after the one year. If the luxuries are not accomplished, we will have a better change of staying here for "as long as we choose to stay here ". Without the vouchers many of us have absolutely NO CHANCE to remain here. To keep Mr Boisclair from "dancing" around the issue of vouchers, I intend to ask him at the meeting here, if he can personally guarantee the vouchers will be available for us after the first year. Since he cannot do this, will he personally guarantee he will not raise any of the current residents rents so we can "afford" to stay g here as long as we choose? There is NO WAY to justify public funding to provide luxury living for a few while more go without the basic necessities. It is obvious Mr. Boisclair does not share your concern for the present tenants. Very Sincerely, �� Maine LaLiberte O gle Creek Towers If your income is about to prevent Mr.Boisclair from charging the new minimum amount to current residents. $30,000, Mr B o isc lair He says we can stay here as long as we . o clair wants you choose, as long as we fall into the for a tenant "guidelines." Those guidelines do not apply to many of us. Mr. Boisclair stated at the for his proposed luxury city council meeting: "People with incomes assisted f $31,700 can live here as long as they wish g to stay." Keep in mind that if Mr. Boisclair apartments tunas this into assisted living, rents could be as much as $4,302.60 per month. (See chart on the back of this page.) If he has his way and we decide to stay here, Current limits on the voucher program is this is what we can expect: $504 per month for a one - bedroom. That's • 1 Y2- 2 years of inconvenience the HIGHEST rent you will be subsidized for from remodeling •Moving twice and if your rent is over that amount, it will be • 1 -year "sticky" voucher -- up to you to make up the difference out of with NO GUARANTEE from the your pocket. The voucher only pays a government or Mr. Boisclair that the portion of the $504. Another important vouchers will be available after the first year paint Mr. Boisclair fails to tell you. • Pay your own electricity. currently the electricity is included in rent. $595.00 MINIl�lUM for one - bedroom -504 00 Limit of monthly rent important y All portaat points Mr. Boisciair fails to tell you. g includin utilities with voucher Mr Boisclair keeps saying that we can live 91.00 Can you afford this much here as long as we want at rents we can additional each month out of your pocket? afford, but he won't back up his word in writing. WHY? Are you comfortable with Voice your opinion to: this. Do you want to put your trust in a Mayor and City Council Members person who cannot or will not keep his City Hall promises. Even the City Manager pointed 6301 Shingle Creek Parkway out that Mr. Boisclair is giving us "double Brooklyn Center, MN 55430 messages." Currently the MAXIMUM rent paid here is Mayor Kragness 561 -7442 $475 a month for a two- bedroom. Do you Council Member Hillstrom 561 -6487 realize that the MDMAUM will be $595 a Council Member Carmody 566i✓eemL 3 month ;;r a one-bedroom, according to Mr. Member Lasman 560 -6689 Boisclair? We have NO built -in safeguards Council Member Peppe 561 -2874 (over)