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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 Maze and Vic Caranci as outlined <br />earlier by Bill Smii~h. <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 is, 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 iri doing the Inducement Resolu- <br />tion this evening as there will be complete and <br />detailed program de:~cription when the time comes <br />for final Council a~>proval for the actual issuance <br />of these bonds. <br />Hundley asked for a conservative estimate and an <br />optimistic figure for the amount of arbitrage that <br />may 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 />Bill Smith responded by stating $750,000 would be <br />a good estimate. Hundley further stated that the <br />original figure of $20,000 to the Housing <br />Authority doesn't seem like a very reasonable <br />allocation toward law-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 home~buyer. This is a marketing <br />concept and to the d'.egree that you use the <br />arbitrage for something else, you take it away <br />from the potential Yiomebuyer. That is a balance <br />that we will have toy strike as we become joint <br />venture partners with the City of Louisville down <br />the road." <br />Hundley stated that there is an equity issue and <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 recognize as needed. I also think we need to <br />keep in mind 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 />