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<( ® ® RSr= N 03 <br /> DORSEY & WHITNEY LLP. <br /> MEMORANDUM <br /> TO: Michael Mornson, City Manager <br /> FROM: Jerome P. Gilligan <br /> Jay R. Lindgren <br /> DATE: June 17, 2004 <br /> RE: Northwest Quadrant Redevelopment— Summary of Rental Housing <br /> Redevelopment Agreement <br /> 1. Development <br /> The Redevelopment Agreement ("Agreement") is by and between the HRA and St. <br /> Anthony Leased Housing Associates I, Limited Partnership (the"Developer"), which is a single. <br /> purpose entity formed by Dominium Development &Acquisition LLC. The Developer has <br /> entered into a Purchase Agreement with.Apache Redevelopment , LLC, the Master <br /> Redeveloper, to acquire the property by September 30, 2004, which may be extended to <br /> January 31, 2005. The purchase price for the property is $2,750,000 or$10,536/unit. <br /> The Development consists of 261 rental units, of which, 80 will be senior housing units <br /> and the remaining 181 will be non-age restricted units. Twenty (20) percent of the units will be <br /> affordable to persons at or below fifty (50) percent of the area median income (52 units). <br /> The Agreement provides that the Developer shall commence with construction not later <br /> than January 31, 2005 and complete the improvements by July 1, 2006. The Development will <br /> be subject to customary City land use controls and approvals, including a PUD Agreement and <br /> approval of Final Plans and Final Plats. <br /> 2. Assignment to Development Parties <br /> The Development Agreement can be assigned to another party, but only with consent of <br /> the HRA. <br /> 3. Tax Exempt Bond Allocation <br /> The Developer is requesting the City to issue tax-exempt conduit revenue bonds in the <br /> principal amount not to exceed $37,500,000, to assist in constructing the development. These <br /> bonds do not create any risk for the City, since they are revenue bonds and are paid by project <br /> revenues. In addition, the bond amount does not affect the City's or HRA's debt limits. <br /> The developer will be required to pay the City a fee in the amount of one (1) percent of <br /> the principal amount of the bonds, in accordance with the City's Conduit Financing Policy and <br /> the HRA will be required to hold a public hearing on the issuance of these bonds as required by <br /> State Statute. <br /> DORSEY&WHITNEY LLP <br />