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TWIN LAKE APARTMENTS <br />Reuter Walton Development, LLC- Term Sheet for TIF Loan Agreement <br />DRAFT – For Discussion Purposes Only <br />MAY 31, 2022 <br /> <br />I. Project Summary <br />a. Construction of a 60-unit mixed-income, multifamily rental housing project (Project) by <br />Reuter Walton Development, LLC (Developer). <br />b. The Project shall comprise of 60 units with 10% (6 units) affordable at or below 30% AMI, <br />and the balance of the Project (54 units) at 60% AMI. The Project will consist of 25 1- <br />bedroom units (6 units at 30% AMI and 19 units at 60%), 24 2-bedroom units (all at 60%) <br />and 11 3-bedroom units (all at 60%). <br />c. Total development cost estimate: $19,048,358. <br /> <br />II. Agreement Summary <br />a. Developer agrees to build the Project substantially in the form of the approved final <br />development plan and estimated cost of $19,048,358. <br />b. City agrees to invest in Project by: <br />i. Providing loan to be repaid with available cash flow and refinancing <br />1. $1,000,000 of assistance provided to developer <br />a. Using transferred tax increment revenues from several of the <br />City’s existing tax increment districts <br />2. Loan to be provided when portion of project complete <br />a. After inspection and final approval of the footings and <br />foundation permit <br />3. Loan repayment structure <br />a. Interest only for up to 17 years <br />i. 1% for 5 years, 3% for 5 years and 4% remaining 7 years <br />ii. Unpaid interest does not accrue or compound <br />iii. Principal balloon payment in year 17 <br />b. Cash flow after debt service and interest-only loan repayment <br />pays deferred developer fee <br />c. The Project shall consist of 10% of units at 30% AMI and remaining units at 60% AMI for <br />up to a 26-year affordability period <br /> <br />III. City Public Investment <br />a. City will provide tax increment assistance to the Project using available tax increment <br />district funds through the issuance of a Loan to the Developer: <br />i. Repayment terms described above, and subject to cash flow feasibility of the <br />Project <br />b. City sale of land to Developer at reduced purchase price <br /> <br /> <br />