08-08-1994 EDA - Laserfiche WebLink

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MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY REQUEST FOR EDA CONSIDERATION 1111 STAFF REPORT EDA MEETING DATE August 8, 1994 EDA Action: ❑ Special Order of Business Agenda Section: 6.B ❑ Public Hearings Report Number: EDA-94-21C ❑ Consent Agenda Report Date: 8-8-94 EDA Business Item Description: Consideration of Resolution No. 94-EDA13 Approving and Authorizing the Execution of a Revised Development Assistance Agreement with the Silver Lake Pointe Apartments, LLC. Executive Director's Review/Recommendation: - No comments to supplement this report - Comments attached Explanation/Summary (attach supplement sheets as necessary) SUMMARY: On Friday morning, August 5, 1994, Community Development Coordinator, Paul Harrington, received a call •from Jeff Huggett of Westminster in request for an amendment to the development agreement between the EDA and Silver Pointe Apartments, LLC (senior housing). Mr. Huggett has requested an extension to the "drop dead" date of December 31, 1995, referenced in Article III, Section 3.1 of the Agreement,to June 30, 1996. The "drop dead" date is the date the developer must complete the improvements in accordance with the approved construction plans. If there is a violation of the "drop dead" date , the development agreement may be terminated. Silver Lake Pointe Apartment's construction lender has expressed a concern with completing the project in one year. Apparently, 18 months is typically requested for completion of such a project. The construction lender must verify financing for the project by signing off on the application to MHFA. The application was due by the end of the day Friday,August 5, 1994. Therefore, after consultation with President Linke and a bond attorney with Briggs and Morgan,Mr.Harrington prepared the attached letter which expresses strong support from the community and EDA for a successful, expedient project. In addition, the letter references that the request for an extension of the "drop dead" date would be seriously.consideredat tonight's meeting. This letter was necessary to convince the construction lender to sign the MHFA application. Because this is a pay-as-you-go assistance agreement, the extension of the date does not pose a financial burden on the City. The extention merely defers the date in which the tax increment is incurred. The attached resolution 94-EDA 13 approves and authorizes the revision of the development agreement with Silver Lake Pointe Apartments, LLC. All other conditions of the development agreement remain the same as presented on May 23, 1994. i IP, Cathy Bennett' co,omic Development Coordinator RECOMMENDATION: • Motion to waive the reading and approve/disapprove Resolution No.94-EDA13 Approving and Authorizing the Execution of a Revised Development Agreement with Silver Lake Pointe Apartments, LLC.