05242004 Regular Meeting - Laserfiche WebLink

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207. Regular Meeting May 24, 2004 Page 6 this project provides the opportunity to put senior housing in San Marcos, but needs tax exemptions. He stated he will not be able to build the project without the tax exemption. 5) Dianne Wassenich stated she supports the environmental preservation which will occur with this particular multi-family development. 6) Albert Sierra, Director of San Marcos Housing Authority, encouraged the Council to support this project. He stated several members of the San Marcos Housing Authority Board are present to show support on this project. Mr. O'Leary stated the San Marcos Housing Authority and Hunter Road Affordable Housing, LP, have entered into a partnership to construct Willow Springs Senior Residence, a 180-unit apartment complex, located in the 2600 block of Hunter Road. He stated this project, as proposed, will be exempt from ad valorem property taxes under Texas Local Government Code, Section 392.005 since the Housing Authority will control 100% of the general partnership. He also stated this project will provide affordable housing to residents, age 55 and over, whose incomes do not exceed 60% of the area median income. He stated the owners have agreed to make payments in lieu of taxes (pilot) to certain taxing entities. Mr. Diaz inquired whether the owners have to have the City's consent. Mr. O'Leary stated the owners can partner without the City, but the owners are asking for consent of the pilot program. Mr. Diaz inquired whether Stonebrook could seek the same status. Mr. O'Leary stated Stonebrook might be able to receive the same tax status, but it would be difficult. Mr. Mark Taylor stated ownership of property by Housing Authority for public purpose is public property. He stated Willow Springs' financing with Capital Area Housing Financing Corporation can not occur without the Mayor's signature. He also stated he provided a memo regarding the conversation with CAHFC's attorney, Seth Searcy. He suggested the Resolution be modified to allow the negotiations to be handled by staff and come back to Council for approval. Mr. Taylor stated he feels the rates should be the same for Stonebrook and Willow Springs. He also stated he does not support taking land off the tax roll. Mr. Thomaides stated he also has a difficult time taking property off the tax roll. Mr. Bose inquired as to the amount of money the pilot program would receive. Mr. Shaw, of Bonner Carrington, stated with 95% occupancy the City will receive for 1-3 years $5,000.00, 3 to 6 years $6,000.00, 7 to 9 years $20,000.00 and 10 to 12 years $22,000.00. Mr. Mihalkanin stated he feels this agreement is something the Council should handle. Mr. Mark Taylor suggested Part 1 on the page 1 allow the City Manager and the City Attorney to be authorized and directed to negotiate the terms of an agreement and bring back to the Council for approval. Mr. Mihalkanin moved to amend Part 1 to read... The City Manager and the City Attorney to negotiate the terms of an agreement between the City and other parties for payments in lieu of taxes to taxing entities in the jurisdiction where the Project is located, such agreement to be subject to approval by the City Council upon finalization, and Mr. Guerrero seconded the motion, which passed unanimously. Mr. Taylor stated he feels property tax payments of $25,000.00 for the pilot program could be jeopardized. Mayor Narvaiz