Loading...
HomeMy WebLinkAboutminutes.council.19900501Continued Meeting Aspen City Council May 1, 1990 Mayor Stirling called the meeting to order at 5:30 p.m. with Councilmembers Gassman, Tuite, Pendleton and Peters present. ORDINANCE #31, SERIES OF 1990 - Short Term Notes Cindy Wilson, finance director, gave Council some information on the housing RETT and sales tax revenue projections. Councilman Peters moved to read Ordinance #31, Series of 1990; seconded by Councilwoman Pendleton. All in favor, motion carried. ORDINANCE #31 (Series of 1990) AN ORDINANCE AUTHORIZING THE ISSUANCE BY THE CITY OF ASPEN, COLORADO, OF ITS TAXABLE. SHORT-TERM NOTES, SERIES 1990 IN THE PRINCIPAL AMOUNT OF $1,600,000; PRESCRIBING THE FORM OF SAID NOTES; PROVIDING FOR THE SALE OF SAID NOTES; ESTABLISHING A FUND WITH RESPECT THERETO; PROVID- ING FOR THE PAYMENT OF SAID NOTES AND MAKING AN APPRO- PRIATION THEREFOR; APPOINTING A PAYING AGENT FOR SAID NOTES; APPROVING THE FORM OF A PAYING AGENCY AGREEMENT AND INVESTMENT LETTERS; AND PROVIDING OTHER DETAILS IN CONNECTION WITH SAID NOTES AND MAKING AN APPROPRIATION TO ADVANCE FUNDS TO THE ASPEN/PITKIN COUNTY HOUSING AUTHORITY was read by the deputy city clerk Dave Myler, city attorney's office, told Council the ordinance includes a provision appropriating the funds for acquisition of the Hopkins avenue sites. The principle and interest on the notes are to be paid by December 31 from available tax revenues. Myler reminded Council they assigned these contracts to the housing authority and will be considering a loan agreement where the city will be repaid from the ultimate disposition of the property to the extent possible. The subsidy will be the difference between $1,600,000 and what the city earns from the disposition of the property. Ms. Wilson said these are short term notes that need to be paid off at the end of the year. They can be re-issued in January. Ms. Wilson said this is a private placement. The interest rates will be about 8-1/2. These will not be tax free notes. Myler said the tax aspects are dictated by the use of the proceeds. The opinion from bond counsel is that for sale housing would require interest and taxes. Ms. Wilson said the city will use the housing RETT and the sales tax to pay this off. If staff's projections are too high, they can borrow from the water or electric fund on a short term basis. Councilman Gassman asked if the city can sell the land without any penalty. Myler said the city can sell this without voter authori- zation. 1 Continued Meeting Aspen City Council Mav 1, 1990 Councilman Peters moved to adopt Ordinance #31, Series of 1990, on first reading; seconded by Councilman Gassman. Councilman Peters said one issue is how long it will take the housing authority to develop these properties and to pay the city back or have units on the market so the community has the benefit. Councilman Gassman said the housing authority has ads out for a housing planner to be hired next month. Roll call vote; Councilmembers Peters, yes; Tuite, yes; Gassman, yes; Pendleton, yes; Mayor Stirling, yes. Motion carried. Ms. Wilson told Council the beginning balance at the end of 1990 of the RETT is $480,000; projected revenues from both the RETT and sale tax are about $1,000,000. The chart shows estimated expendi- tures which indicate the level of expenditures that can be made during the life of the taxes and still leave a fund balance. Council could bond sales tax revenues bonds up to $8,000,000 out of these funds. These bonds would require voter approval. Myler told Council the use of housing RETT as the sole repayment of a bond issue would not require an election. These bonds are dif- ficult to sell. Ms. Wilson said Council should give some thought as to how much they are willing to borrow from other funds. ACQUISITION OF THE AUSTIN PROPERTY Myler told Council he evaluated this property on similar uses in the neighborhood, in-town walking distance, it is available and at a price to produce low and moderate income housing.. Councilman Gassman said he would like to see some moderate income housing produced. Myler said he would like to examine the development of a rental project. Myler said the city can borrow more money based on the income stream from a rental project than from the sales of the project. Councilman Peters said this looks like a good opportunity for affordable housing. Councilman Peters moved to direct the city attorney's office to proceed on the contract with the Austin property; seconded by Councilwoman Pendleton. All in favor, motion carried. Councilmembers Pendleton and Peters said they would like to pursue investigating land leases, especially for some of the higher subsidy projects. NEGOTIATED RENT CONTROL Myler told Council legislated rent control is against the law in Colorado. Myler presented a memo on maintaining the status quo of inventory of rental properties in order to catch up and produce 2 Continued Meeting Aspen City Council ~ May 1, 1990_ other inventory and to maintain rents at current levels. Myler said the response to this by the housing authority was lukewarm and they did not want to develop a program but to look at it on a case by case basis. Councilwoman Pendleton said this should be put on hold until the city has a project it may apply to, rather than spending a lot of energy on it. HOUSING AT WATER PLANT Myler said this site could be developed for small historical structures that need to relocated. Myler said he would like the new planner for the housing authority to consider the feasibility of this along with new housing at this site. Councilwoman Pendleton said she would rather have the historic houses in town where they can be seen. Mayor Stirling agreed. Bob Gish, city engineer, told Council the public works department has planned for a fourplex each in 1991 and 1992 to house essential service employees. Gish said employees that are needed for snow removal, electrical emergencies should live closer to town. Councilman Peters said the land use implications should drive the decisions about housing at the water plant. Councilman Tuite agreed the city needs to take care of their emergency personnel ; however, he agreed about the land use implications. Councilman Tuite said he would like to see emergency personnel housing be done with city funds rather than housing funds. Mayor Stirling moved to direct the housing authority to hire a planner as soon as possible; seconded by Councilwoman Pendleton. Motion carried. BALDWIN PROPERTY Myler told Council he has met with Harley Baldwin on purchasing parcels A and B for $1,300,000. Myler said in the discussions, it was assumed that parcel C would be reconveyed to Baldwin on some basis. This parcel is zoned LP. Myler said to address neighbor- hood concerns, staff has discussed making parcel B a park. Myler said this will be about 36,000 square feet and asked Council to consider purchasing this with sixth penny funds and reducing the costs of the housing parcel. Councilman Gassman said he does not feel this parcel will be high on the list of priorities for open space. Mayor Stirling said he received a letter from the Parks Association questioning the appropriateness of the site for open space Mayor Stirling moved to direct Myler and Councilman Peters to continue the dialogue with Baldwin and report back to Council by May 14th; seconded by Councilwoman Pendleton. Motion carried. 3 Continued Meeting Aspen City Council May 1, 1990 Council continued the meeting to May 11 at 4 p.m. Council ad- journed at 7:10 p.m. Kathryn Koch, City Clerk