2004-04-12 Regular Meeting and Workshop Meeting Minutes

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City Council Regular Meeting and Workshop Meeting - April!2, 2004 - Page 7 Mr. Turkel agreed there is no doubt that if you are able to attract the other type of development that is what you would get, but they would suggest that land that is undevelopedoffers an opportunity to obtain beautiful new properties with all the amenities and have undeveloped land bring in tax revenue. That is also the concept of the idea of the TIRZ, to take undeveloped property and encourage development. Councilmember Engelken questioned the other tax entities, such as, school districts, Harris County, Hospital District, there are a number of other taxing agencies involved; does this apply to them, too? Mr. Turkel responded that the same applies to all the other taxing agencies. Steve Frick with Vescor Development Corporation stated they are the proposed owner/developer of Alexander Ridge at Sens and Spencer Highway; are zoned multi-family, presently, will be paying full taxes, and are proposing to have 180 units. The big issue with this development is they are funded with tax exempt bonds issued by Harris County Housing Finance Authority, are required to have a Public Hearing giving the citizens an opportunity to attend the meeting. Typically, there is opposition with these properties and we want to clarify any misconception about this development. Mr. Meismer questioned that initially you are not going after the same type of tax credits. Is there anything that would stop a conversionary process? It is his understanding that some of these processes involve high-density situations, such as this, that are brought in and then converted in to a similar-type process and then later taken off the tax rolls. Mr. Frick assured Mr. Meismer that they have no plans to do that, they are a for-profit entity. Mr. Meismer questioned Mr. Frick ifhe was aware of that type of tax conversion activity. Mr. Frick stated no. Councilmember Ebow questioned along the lines of affordable housing, not Section 8, what are the plans for the management of these properties? What types of standards will you be conveying to Spencer Landing? Mr. Frick agreed this was a very important question, the most important part of an affordable project is the management. They use Alpha Barnes Real Estate Services out of Dallas, Vescor has 3 locations in the Houston area which Alpha Barnes are managing. Vescor has the same criteria and guidelines that is imposed on the other tax credit properties, credit checks, crime checks, ability to disqualify applicants. An important item, they award a unit to a law enforcement officer in the area, with residents being aware of their residence. Mr. Griffiths questioned about sex offenders? Mr. Frick informed him there would be no felons approved to be residents. Mr. Meismer requested Mayor Pro Tern to note his question, in the minutes, ofMr. Frick not being aware of tax conversion activity. Tim Smith representing the developer of Fair Mist Apartments with the Harris County Housing Authority asked if there were any questions. There were no questions. Barry Kahn agreed that management is very important, in addition to credit checks, employment checks, and prior resident status. Harris County will be part of this development, it is a for profit entity. The tax credits are purchased by financial institutions, major banks, etc. The purchasers have significant penalties if things go wrong. Regarding taxes, all real estate is basically valued on its income approach, whatever the income. One of the purposes of the affordable housing project and tax credits is to provide housing and housing assistance for people who are of moderate means, including teachers, public service