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EHLERS °8 &. ,, ssacin -ES INC MEMORANDUM DATE: June 18, 2003 TO: Mike Morrison—City Manager FROM: Stacie Kvilvang—Associate Financial Advisor RE: Sale of HRA Owned Property on Kenzie Terrace Between 1996 and 1999, the City of St. Anthony Village purchased the following five (5) single- family homes along Kenzie Terrace, in order to assemble them into a single parcel for future redevelopment. ---- ,SAC. ss:•+go - st'�wy, . .r-. . �:� .. ,�: per cam- '� .C�1y�Acgws�tio� eloca�en/Demoltfionn VN all cqursit~ion 1.os `u � 44` 1F �"ri.•� 'V:_.. tL w-�' j� 7,ziU. � i F U � �.x' Cost ,z „� & p as 2548 Kenzie Terrace 07-029-23-23-0004 $105,000 $11,239 $116,239 2546 Kenzie Terrace 07-029-23-23-0005 $62,000 $11,871 $73,871 2542 Kenzie Terrace 07-029-23-23-0006 $94,000 $13,646 $107,646 2538 Kenzie Terrace 07-029-23-23-0007 $70,000 $9,946 $79,946 2534 Kenzie Terrace 07-029-23-23-0008 $53,000 $14,101 $67,101 TOTAL N/A $384,000 $60,803 $444,803 On May 3, 2002, the City sent a Request for Proposals T� , (RFP) to five (5) residential developers who had inquired and shown interest in redeveloping this 1.06-acre site for both owner-occupied town homes and multi-family rental developments. On May 29, 2002, the City received two ! / submittals from developers in accordance with the \, requirements of the RFP. At their June 17, 2003 meeting, c °'` _ _ the Housing and Redevelopment Authority (HRA) approved LaNel Financial's development concept they submitted in response to the RFP. Autumn Woods 01 Senior Apartments f° LaNel Financial currently owns the Autumn Woods Apartments, a senior-rental community located t� immediately adjacent to the redevelopment site on the east. They initially proposed to purchase the HRA land for �i� = 1 $150,000 ($7,500/unit) and construct 20 senior rental units. Since that time they have refined the site plan and are now proposing to construct 38 units and purchase the land for $285,000. After being selected by the HRA to develop the property, LaNel Financial approached the single- family homeowners to the south of this property to inquire if they were interested in selling their property to them for the development of additional senior housing units. Some of the property owners were willing to look at selling their property and proposed an acquisition price to LaNel Financial's Broker. Based upon their proposed acquisition price(s), it was determined by LaNel Financial, Ehlers and City Staff that incorporating these properties into the development would not be financially feasible. Therefore, LaNel Financial has proposed to move forward with the original development plan for the properties located on Kenzie Terrace only, as outlined in the chart on the following page: