Request for Council Action - Orono Ambar, LLC

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SUMMARY OF DECEMBER 7,2000 WORK SESSION DISCUSSION REGARDING SENIOR HOUSING PROPOSAL There was general agreement among the Council Members and the residents in attendance at the work session that the concept of a senior housing development on the site is acceptable. However,there were concerns regarding the height and massing of the proposed building. There was substantial discussion regarding options for addressing this concern. The option determined to be both feasible and effective in reducing the impact of the building's height on the neighbors to the north was to eliminate the top story of the easternmost portion of the building, which is closest to the neighbors. This would result in a reduction in the number of units from 70 to 62. There was also concern regarding the City's ability to ensure the building would continue to be used for senior housing, both in the medium term (20-30 years) and in the long term. It was discussed that the City's financial participation (i.e., through TIF) gives the City control for the duration of this participation (20-25 years). There were two options discussed for maintaining control of the use of the building in the long term. One was the imposition of restrictive covenants that would require the building to continue to be used for senior housing. It is questionable whether the owner of the building would agree to such covenants, and whether those covenants could be extended far into the future. Another option considered was the City's purchase of the land. This would enable the City to control the use through a long term lease arrangement restricting the use of the land to senior housing. These options need to be further explored. Mr. Dunbar indicated financial assistance, i.e., TIF, was essential to the feasibility of the project. Council Member Kelley indicated it was his opinion the City should not be involved financially. Jabbour indicated there is agreement regarding the need for the project. The City's financial participation provides two benefits. First,it makes the project feasible. Second,it provides the City with control over the project, at least in the medium term. It was determined that the use of Tax Increment Financing should continue to be pursued.