Laserfiche WebLink
515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.ci.little- canada.mn.us <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Matt Anderson <br />Rick Montour <br />ADMINISTRATOR <br />Joel R. Hanson <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Ranson, City Administrator <br />DATE: February 8, 2002 <br />RE: Senior Housing/Retail Developer Proposal Workshop <br />We have scheduled a workshop with the Planning Commission to continue our review of the development <br />proposals for the southeast corner of Rice Street and Little Canada Road. The agenda is as follows: <br />5:00 — 5:45 MetroPlains <br />5:45 — 6:15 Dinner <br />6:15 — 7:00 Sherman & Associates <br />7:00 — 7:25 Discussion & Evaluation <br />I have also attached the preliminary financial analysis prepared by Mark Ruff of Ehlers & Associates <br />based on the proformas including with each proposal including some follow -up questions that Mark asked <br />of the developers. A key consideration in this analysis is the amount of revenue each project generates. <br />(These are the resources that will allow us to recover our expenditures for this project that will be in the <br />range of $2,000,000 - give or take a couple hundred thousand.) You will note that MetroPlains is <br />substantially below this target. However, they should be able to make some adjustments in the revenue <br />stream by providing cash for the land associated with the townhome units at a minimum. (Please note: I <br />have only provided the developers with Mark's comments relative to their proposal.) <br />Another consideration we need to keep in mind for our own benefit is the potential to capture the tax <br />increments from the Mayfield project when our obligation to them ends in 2006. This generates a present <br />value amount of about $250,000. To capture this amount requires us to form a housing tax increment <br />district. This means an "affordable" component whereby 20% of the units are rented to people at or <br />below 50% of median income. (Please keep in mind "affordable" does not mean subsidized but rather is <br />a function of rent levels.) <br />The topics we are asking each of the presenters to speak to are as follows: <br />• Provide us with realistic range of proposed retail space square footage. <br />• Discuss financing issues associated with their proposal including <br />types of financing contemplated. <br />- governmental or other special approvals. <br />timeline for obtaining commitment. <br />problems that may be encountered. <br />• Review amount of City Assistance beyond the $2,000,000± we need to recover. <br />• Provided estimate of developer contributions for land deemed feasible. <br />• Review of unit mix ( #'s of one bedroom, two bedrooms, etc.) <br />- 1 - <br />