HRA MINUTES 06222004 - Laserfiche WebLink

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HRA Meeting Minutes June 22, 2004 Page 2 The Development consists of 261 rental units, of which, 80 will be senior housing units and the remaining 181 will be non -age restricted units. Twenty (20) percent 3 of the units will be affordable to persons at or below fifty (50) percent of the area 4 median income (52 units). 5 6 The Agreement provides that the Developer shall commence with construction 7 not later than January 31, 2005, and complete the improvements by July 1, 2006. 8 The Development will be subject to customary City land use controls and 9 approvals, including a PUD Agreement and approval of Final Plans and Final 10 Plats. 11 12 2. Assignment to Development Parties 13 The Development Agreement can be assigned to another party, but only with 14 consent of the HRA. 15 16 3. Tax Exempt Bond Allocation 17 The Developer is requesting the City to issue tax-exempt conduit revenue bonds 18 in the principal amount not to exceed $37,500,000, to assist in constructing the 19 development. These bonds do not create any risk for the City, since they are 20 revenue bonds and are paid by project revenues. In addition, the bond amount 21 does not affect the City's or HRA's debt limits. 22 The developer will be required to pay the City a fee in the amount of one (1) percent of the principal amount of the bonds, in accordance with the City's 25 Conduit Financing Policy and the HRA will be required to hold a public hearing 26 on the issuance of these bonds as required by State Statute. 28 4. Tax Increment 29 A. Creation of a Redevelopment TIF District. The City and HRA have 30 created a Redevelopment TIF District. 31 32 B. TIF Assistance. The Developer will receive ninety (90) percent of the 33 available TIF for 25 years on a Pay -As -You -Go basis, with a present value 34 (assuming no inflation) of approximately $3.4 million to $4.1 million. If a 35 two percent inflation factor is considered, this range would increase to 36 approximately $4 million to $4.8 million. The final assessed value of the, 37 property will be determined by the County Assessor, and this final 38 valuation will be used to determine the final TIF amount. Those assessed 39 values are currently estimated in the range of $95,000 to $115,000 per 40 unit. The Developer will pledge their TIF note to the construction lender. 41 42 C. TIF Adiustments. After the development is constructed and has received 43 its Certificate of Occupancy from the City, the Developer is required to 44 submit to the HRA, a final sources and uses statement from a certified 45 public accountant that is approved by the HRA. To the extent the sources 40 of funds exceeds the uses, the Developer will have thirty (30) days to submit an amount equal to fifty (50) percent of the amount by which total 48 sources exceed total uses to the HRA.