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Housing and Redevelopment Authority Meeting Minutes <br />May 8, 2012 <br />Page 2 <br />4 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 V. <br />27 <br />28 <br />29 <br />anticipated construction costs or if additional grant funds are obtained; the purchase price may <br />increase from $8,000 to $10,000 per unit and the City could receive an additional $161,000. <br />Councilmember Stille asked about the likelihood of receiving the Ramsey County grant funds. <br />Mr. Ron Mehl, Dominium, appeared before the City Council and stated they believe that <br />Dominium will receive the grant from Ramsey County. <br />Ms. Kvilvang explained that the developer proposes to construct a 152 -unit senior independent <br />living rental building and at least 20% of the units must be affordable housing for seniors at or <br />below 50% of the Area Median Income. She indicated the construction costs are expected to be <br />approximately $14 million. She stated Dominium will be required to enter into a Minimum <br />Assessment Agreement for the project, or $85,000 per unit, which is the basis for the tax <br />increment provided; however the Minimum Assessment Agreement would not be required if the <br />Legislature changes the tax laws affecting the value of the property below $14.4 million. She <br />stated the City is providing a pay-as-you-go TIF note in the amount of $1,023,000 for a term of <br />15 years, ending February 1, 2031. She advised the Development Agreement will include look <br />back provisions and stabilization is considered when the building is at 93% occupancy. She <br />stated Dominium will reimburse the City's legal and fiscal costs of the Development Agreement <br />and Purchase Agreement, as well as pay park dedication fees of approximately $228,000 or <br />$1,500 per unit. She stated that Dominium is once again asking the City to act as a conduit on <br />the bonds and will be required to pay all legal and fiscal costs associated with that as well. She <br />added the Purchase Agreement and Development Agreement will be presented to the City <br />Council on May 22, 2012, as part of a public hearing. <br />STAFF REPORTS <br />None. <br />30 VI. H.R.A. COMMISSIONER COMMENTS <br />31 <br />32 None. <br />33 <br />34 VII. INFORMATION AND ANNOUNCEMENTS <br />35 <br />36 None. <br />37 <br />38 VIII. ADJOURNMENT <br />39 <br />40 Chair Faust adjourned the meeting at 7:53 p.m. <br />41 <br />42 Respectfully submitted, <br />43 Barbara Hughes, TimeSaver Off Site Secretarial, Inc. <br />44 <br />45 ATTEST: <br />46 <br />47 City Clerk <br />