02-14-1996 Council Agenda - Laserfiche WebLink

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02 -09 -1996 10:46 612 339 5897 6E517.FLANAOAN P.04 Tenants will pay their own cable television, telephone and electricity charges. All other utilities will be paid by the Partnership. The Partnership believes that current Project rents are very competitive for the market area. Rehabilitation Wort Upon satisfying the conditions precedent to the disbursement of the proceeds of the Bonds under the Indenture, the Bond proceeds deposited into the Project Fund will be withdrawn by the Partnership to undertake certain rehabilitative work at the Project (the "Rehabilitation Work'). Rehabilitation Work currently expected to be undertaken at the Project includes acquisition and installation of new air conditioning, replacement of all countertops and original appliances, including dishwashers in all apartment units, installation of new carpeting and flooringin units where such items are older than four years, common area painting, new carpeting and lighting, roof work, including replacement of garage roofs and the majority of garage doors, balcony repair and painting, retaining wall construction and miscellaneous exterior repair. The Partnership expects to complete all exterior and common area Rehabilitation Work before December, 1996. The unit upgrade Rehabilitation Work will be spread out over the 24 month period following Bond Closing to minimize tenant displacement. It is currently expected that the Partnership (or an affiliated entity) will act as construction manager with respect to the Rehabilitation Work and will receive payment of a construction management fee in connection therewith. To maintain the tax- exempt status of interest on the Bonds, expenditures for Rehabilitation Work in an amount not less than $374,475 must be completed during the 24-month period following the Bond Closing. Failure to complete the Rehabilitation Work may adversely affect the tax - exempt status of interest an the Bonds. Qccuuancy The Project was approximately 9596 occupied as of December 1, 1995. Based upon its review of the Seller's operating data, the Partnership believes that occupancy for the Project for the last 12 months has averaged more than 9596. Based upon such data, the Company believes that the Project will generate sufficient revenues to pay all expenses of the Project including debt service on the Bonds and other fees and expenses associated with the financing, Many A Comparative Analysis report was compiled by Apartment Search Profiles for the Project and its comparable properties. The Comparative Analysis report indicated that the comparable properties around the Project have similar rent levels and are experiencing high occupancy levels. The Comparative Analysis was based on data collected during the fourth quarter 1995 by Apartment Search during its latest quarterly phone survey with property managers. Apartment Search is a multifamily market research company which tracks rental and vacancy information on the Twin Cities market. -13- Page 15