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The Public Notice stated VIP Builders as the <br /> initial owner, operator and manager of the Project. <br /> The joint venture will actually include Gary <br /> Johnson, Pat ease and Vic Caranci as outlined <br /> earlier by Rill Smith. <br /> Sackett asked for the intent of the legislation <br /> that allows for tax-exempt bonds. Although there <br /> is no way of,knowing what the intent of this <br /> legislation it, Dalton explained that serving a <br /> public purpose could be construed as simply as <br /> adding assessed valuation to the City of <br /> Louisville. <br /> Russ Caldwell, Kirchner Moore, Inc., the City's <br /> Bond Counsel, advised Council that there is no <br /> risk for the City in doing the Inducement Resolu- <br /> tion this evening as there will be complete and <br /> detailed program description when the time cones <br /> for final Council approval for the actual issuance <br /> of these bonds. <br /> Rundley asked for a conservative estimate and an <br /> optimistic figure for the amount of arbitrage that <br /> say be earned as this leads into what may be <br /> deemed as reasonable to either earmark to the <br /> Urban Renewal Authority or some other project. <br /> Sill Smith responded by stating $750,000 would be <br /> a good estimate. lundiey further stated that the <br /> original figure of $20,000 to the Sowing <br /> Authority doesn't seer like a wry reasonable <br /> allocation toward low -income needs. Smith stated <br /> that the $20,000 figure was an "arbitrary number <br /> and that the intent of the project is to attract <br /> the upper--scale hoa.buyer. This is a marketing <br /> concept and to the degree that you us. the <br /> arbitrage for something else, you take it away <br /> from the potential hoaebuysr. That is a balance <br /> that we will have to strike as we become joint <br /> venture partners with the City of Louisville down <br /> the road. <br /> Bundl.y stated that there is an equity Jesus end <br /> the concern is that the City needs to be very <br /> careful of using the City's "good offices in <br /> essence for projects which benefit higher income <br /> people when there is a moderate income benefit, a <br /> benefit to the City's housing market which all of <br /> us recognise as needed. I also think we need to <br /> keep in rind the original intent of these types <br /> of mechanisms which is low-income as well.• <br /> Smith replied that the reason for the up-scale <br /> buyer is that staff expressed that this is what <br /> Louisville would like to have as these people tend <br /> 7 <br />