ITEM: 3 Joe Huss, Finance Director
Title
BLAINE ECONOMIC DEVELOPMENT AUTHORITY
APPROVING RATE SCHEDULE FOR BLAINE COURTS AND CLOVERLEAF COURTS SENIOR HOUSING FACILITIES
Background
Twin City Christian Homes Management Company, Inc. (TCCH) has been the Blaine Courts management firm since the project's rent-up period that started in January of 1991 and Cloverleaf Courts beginning in February of 2000.
Blaine staff and TCCH management have prepared the 2012 budgets with the Board recommended rental rate increase of 1% for 2012. The rental fees are designed to cover expenses while effectively managing the non-operating budget and the fund's budget reserve. As part of the budget review process, Blaine staff performed an extensive review of the operating budgets prepared by TCCH. Using these budgets as a base, staff prepared a comprehensive budget for its Senior Housing Fund, which includes Blaine Courts and Cloverleaf Courts Senior Housing Facilities. In addition to operating costs, staff analysis considered long-term capital improvements, debt payment requirements, and the working capital needs of the Senior Housing operation. In recent years, the EDA has held the position that any increase in rates should be aligned to the increase in Social Security benefits. The current expectation is that Social Security benefits will increase by 3.6% for 2012. The attached rate schedule reflects the 1% increase for 2012.
Body
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Blaine Economic Development Authority (the "EDA"), as follows:
WHEREAS, it is one of the goals and purposes of the Blaine EDA to improve the community, strengthen the tax base and enhance employment opportunities; and
WHEREAS, it is the continued desire of the Blaine EDA to provide for senior housing opportunities in the City of Blaine; and
WHEREAS, the Blaine EDA has made a commitment to maintain the affordability and long-term viability of the Senior Housing facilities operated under EDA direction.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Blaine Economic Development Authority, City of Blaine, Minnesota, that the President and Executive Director of the Blaine Economic Development Authority are hereby authorized to establish the monthly rental rate schedule for Blaine Courts Senior Housing and Cloverleaf Courts Senior Housing facilities, effective January 1, 2012 through December 31, 2012 per the attached schedule.
PASSED by the Blaine Economic Development Authority this 3rd day of November 2011.
Recommendation
By motion, approve the Resolution