04/02/2001-CC-Minutes-Work SessionMINUTES: City Council Workshop
April 2, 2001
PRESENT: Mayor Tommy Kincaid, Councilman Craig Waggoner, Councilman Andy Garza,
Councilman Joe Higgs, Councilman Carroll McNeill
ABSENT: Councilman Glenn Ervin
OTHI�RS
PRESENT: City Manager Jack Smith, City Secretary Rose Chavez, Administrative Assistant
Samantha Renz, Ronnie Rucker, Ron Fraze, Woodrow Barton, Bob Kneis
1. Mayor called meeting to order.
2. Discussion Regarding Moderate Housing Project, Presentation by Ronnie Rucker with
Eastern Development,
Ronnie.Rucker, Eastern Development Company, addressed Council regarding the need
for affordable housing in Sanger. He indicated they wanted to do a project that would
help. The City would create a housing finance corporation which would own the project
on behalf of the City. The city would have no liability, they look toward the bond holders
and property owners to satisfy the debt.
Discussed where other projects of this type exist.
Councilman McNeill asked since it is affordable housing, do they pat Ad -Valorem tax.
Mr. Rucker indicated they would not pay Ad Valorem Tax; basically it belongs to the
City, and is exempt; however, the City will make the profit from this project.
He indicated this is something they have available and can do with the city, but they
wanted to make sure the city is behind it.
Councilman McNeill asked if it didn't work out, who would pay for it.
Mr. Rucker indicated the bond holders own it, they would sell it, and the city would still
have the housing.
Discussion regarding the project.
Councilman McNeill asked what happens if it is sold, and the City doesn't own it, what
will happen with the taxes.
Ron Fraze indicated it would then go on the tax roll. These can be run as market rent
projects, just like any other project.
Discussion regarding the rents, typically a 1 bedroom would be around $550, the 2 and 3
bedrooms would go as high as $750.00. The rent adjustments can be made by the city,
Discussion regarding tax credits.
Discussion continued regarding the project.
Mayor indicated this is a work session, they can not make any decisions, but will put it on
the agenda, and discuss it further.
3. Any Other Such Matters,
None.
4. Meeting Adjourned.
1!'Iayor ommy Kincaid