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41, Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Director of Economic Development Date: April 21, 1997 Subject: Discussion of Proposals for City Owned Property on Highway (5.B.) 10 located in Section 9 of the Highway 10 Redevelopment Plan MSP Real Estate presented a concept proposal to the Council regarding the rehab of the former Pleasant Wood Apts and construction of 28 new town homes on the corner of Highway 10 and Eastwood. This development includes the City owned property at 2625 Highway 10, two privately owned vacant lots, 7800 Eastwood and the Pleasant Wood Apts. (See Map). The proposal is outlined in the letter to the Council (attached) dated March 27, 1997 and includes a complicated financing structure that would result in $5 million of investment for low income rental units. It is requested that the City(EDA) sell the land for $35,000 and provide MSP with a $195,000, 1%, 30 year loan using existing TIF funds generated from other developments in the City. In addition, the City would be required to approve a resolution supporting MSP's application for County Home Funds and their application for the 10 Holman Units which are Minneapolis Public Housing Units. Some of the Council's concerns are as follows: ► Desire market rate, owner occupied units for the new town homes. (I will be contacting residential developers to see if this is a viable location for market rate, owner occupied units) ► The property was purchased by the EDA with the intention of rezoning for commercial use. Is this still a viable use? (I am still in contact with interested parties regarding an Animal Hospital location or a Funeral Home) • The EDA directed staff to begin the financial analysis with City TIF Consultant Dave Maroney. Mr. Maroney has begun the analysis and I should be able to give a report on his findings at the meeting on Thursday. In addition, I spoke with the County