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57 Regular Meeting April 8, 1996 - Page 5 AYE: Mooney, Hart, Morris, Guerra, Cox, Hernandez. NAY: None. ABSTAIN: Moore. Mayor Morris introduced for consideration item S. D. (3) removed from the consensus agenda, adoption of a Resolution, the caption which was read as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, ADOPTING A POLICY ON INFILL DEVELOPMENT INCENTIVES AND DECLARING AN EFFECTIVE DATE. Mr. Guerra moved for adoption of the Resolution and Mr. Moore seconded the motion. Mayor Morris stated she thought this was to be a residential infill policy and residential was not stated specifically in the Resolution or the policy. Mr. Hernandez agreed. Mr. Hart stated he did not perceive this policy to be only residential. Mr. Gilley stated he felt the policy was broad enough to cover residential. Mayor Morris suggested the City already had a policy for businesses with the tax abatement agreement and felt residential growth should be given priority in the Resolution and the policy. Mr. Gilley suggested in B. 1. a. to add "... new private property residential improvements." Mr. Hart stated there would be no assistance to infrastructure for small businesses if residential was included in the infill policy. Mr. Gilley stated the City had other ways to assist businesses (i.e., tax abatement, tax increment financing - TIF, C.I.P. ). Mayor Morris moved to amend the Resolution to add "Residential" in the caption " ... policy on residential infill development ..." and in Recitals 2. " ... quality land development residential projects ..." and in Part 1. "The attached Policy on Residential Infill Development Incentives..." and Mr. Mooney seconded the motion. On roll call for the amendment, the following vote was recorded: AYE: Mooney, Morris, Hernandez. NAY: Moore, Hart, Guerra, Cox. ABSTAIN: None. The motion on the amendment failed. The Council then voted unanimously for adoption of the Resolution. Mayor Morris introduced a report from Albert Sierra regarding the Housing Authority Program. Mr. Sierra stated there were 26 lots through HUD that were all developed and should receive Certificates of Occupancy from the City within the next few days. He stated six homes on Martin Luther King were occupied and could possibly convert to homeowners when the grant closes in September or October 1996. He stated the goal for 1997 was to have all 26 homes owned by the lessees. Mr. Sierra stated there were 6 homes on MLK, 4 on Wallace, 5 on Mill Street, 1 on Roosevelt, 1 on Sherwood, 1 on Candlelight, 1 on Castle Gate and the remaining 7 in Westover. Mr. Sierra stated there was difficulty in qualifying occupants who would be able to become homeowners. He stated qualifications require a family of four with a maximum income of $22,250 and not more than a family of five with an income of $24,250 with one person working. The Council asked about the Housing Authority forming a non-profit. He stated the Housing Authority bought the Langtry and Windmill Apartment buildings; however, they flipped at closing 1 with a buyer and made a profit. He said the goal was to start an affordable ownership program and create a Revolving Loan Fund with the non-profit funds. Mr. Guerra asked how much money had been invested since July, 1995. Mr. Sierra stated $711,000 had been invested in T-bills through Nations Bank. The Council advised Mr. Sierra they would like minutes of the Board meetings and would like a report every six months. Mr. Sierra stated he could give presentations in May and November regarding the P.I.L.O.T. report and the annual audit. Mayor Morris introduced the City Manager's Report. Mr. Gilley had no report. Mayor Morris introduced the City Attorney's Report. Mr. Taylor stated the City's conviction was