07-22-2019 EDA Packet - Laserfiche WebLink

Home Search

Summary of Contract for Private Development with Lynglomsten Senior Housing, Inc. Minimum Improvements The Developer has agreed to construct: • Approximately 92 independent living units • Approximately 50 assisted living units • 20 detached townhomes • a clubhouse Purchase of Additional Property, Land Dedication and Infrastructure Improvements The Developer has agreed to purchase the property adjacent to the Tax Increment District and demolition certain buildings on the property. The Developer has agreed to dedicate right-of-way and easements to the City. The Developer has agreed to construct various public improvements, including: • Construction of local and County roads, including the construction of turn lanes • Relocation of Xcel power lines Skilled Nursing Units In addition, the Developer intends to build approximately 56 skilled nursing units if the following conditions are met: (i) the Developer is able to obtain the proper approvals to transfer beds to the TIF District Property from the State on terms and conditions reasonably acceptable by the Developer; (ii) the independent living and assisted living units have maintained at least a 90% occupancy rate for one year; (iii) the Developer is able to find financing for the Skilled Nursing Units from a lender with an interest rate of less than 6.0% per annum; and (iv) a feasibility study commissioned by the Developer or its lender shows that the Skilled Nursing Units are feasible in the market. If one or more of the conditions are not met, the Developer shall not be a default hereunder if the Developer does not build the Skilled Nursing Units. Affordability Covenants At least twenty percent (20%) of the independent living and assisted living units shall be available for occupancy by individuals or families whose income is fifty percent (50%) or less of the area median gross income. Qualified Development Costs Due to the constraints of a housing tax increment district, qualified costs must be solely related independent living and assisted living units. Qualified Development Costs include land acquisition for the independent living and assisted living units, demolition on the land for the independent living and assisted living units, the costs of constructing the underground parking related to the independent living and assisted living units, and the costs of constructing the independent living and assisted living units. Subsidy Provided to Project • TIF Note in the amount of $3,218,000 for Qualified Development Costs • $382,000 from Willow Ponds TIF District for Qualified Development Costs Reduction of Principal of TIF Note The principal amount of the Note will be reduced: • If the final construction costs of constructing the Minimum Improvements and the Infrastructure Improvements are less than estimated by the Developer at the time it sought assistance from the