Agenda Packets - 1997/04/07 - Laserfiche WebLink

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— . . . . ..... . I-...r 1�1.-r1g— 1—..a..,II_. aIvv. C!1AG .7.04:7 LI.00 Fes. 3 410 REOUEST In order to transform this property into the quality level consistent with Silver Lake Pointe, our request to the City would be as follows: 1.) We request that the City approve our PUD to build 28 new townhomes and re-configure the driveway and parking areas as indicated on the enclosed site plan. 2.) We request that the EDA sell its land to MSP at a market price. 3.) We request that the.City provide a $230,000 1% interest, deferred loan to the project, from excess proceeds from existing TIF districts. 4.) We request that the City approve the set aside of ten units in the property for rental as subsidized housing. 5.) We request that the City approve the ownership structure of the property as a Leasehold Cooperative, thus allowing the property to receive the benefit of homestead tax rates. In order to achieve the quality level the City desires, these requests are critical to the transformation of this property. ALTERNATIVES • As we view this situation, the City has three options to consider: 1.) Do nothing 2.) Acquire and demolish the apartments 3.) Approve this rehabilitation concept Option #1: Under this scenario, the property will always be an "eye-sore", and it will continue its long, slow decline as roofs, windows, furnaces and garages continue to fail. The free market cannot and will not provide the level of rehabilitation we propose because it's not economically justified. Option #2: Under this scenario the City would purchase the property at a market price, demolish the structure, pay relocation benefits, assemble the additional 3 acres -- for a total cost of over $2,300,000. Even the most intensive commercial development would never recoup this investment. Option #3: A $230,000 investment would transform a problem property into a quality asset, and spur over $5,500,000 of investment, •