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South Ben4 Redevelopment Commission <br />Regular Moeting - September 5, 1980 <br />6. NEW BUSINESS <br />c. cdntinued... <br />Mt. Ellison: Then they are going to <br />place it on the site and rehab it into <br />fur units? <br />s. Baumgartner: Yes. <br />. Ellison: Is the loan limit 90% of <br />e after rehab value in this instance, <br />J if so, has the property been appraised <br />having rehab value that will exceed the loan <br />10 %? <br />s. Baumgartner: Currently we don't have <br />e appraisal in but we have had a preliminary <br />praisal done. <br />. Ellison: Do you expect the after rehab <br />eraisal to be sufficient to cover the loan? <br />. Baumgartner: Yes. <br />Mr. Ellison: I notice that the information <br />for the operations of the building indicate <br />1(0% occupancy. Is there a particular reason <br />w y the rate wasn't more realistic like <br />9 % or 90 etc.? Part of the reason I ask <br />is that the one - bedroom unit will have a <br />rental of $260.00 and a two- bedroom will have <br />• rental of $325.00 and the one bedroom with <br />• den will have a rental of $300.00, and <br />wile the structure will be placed at <br />7 1 W. LaSalle it just didn't strike me as <br />r asonable to expect 100% occupancy over <br />e course of the year. <br />. Baumgartner: I agree. <br />. Ellison: If net income is adjusted downward <br />zause of the revision of occupany expectations, <br />there any concern (given the other debts on <br />house) that income minus the expenses <br />11 not work out? <br />. Baumgartner: That would always be a <br />stion. Questions remain on the neighbor <br />,d, how much money the lending institution <br />ieves in that person to pay the debts off <br />I whether or not it is reliable application <br />not. They have some money in the bank and <br />.te a few properties which they own.to <br />k them. <br />16 <br />