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EHLERS
<br /> & ASSOCIATES INC
<br /> Oo: Mike Morrison—City Manager
<br /> From: Stacie Kvilvang—Associate Financial Advisor
<br /> Sid Inman—Executive Vice President
<br /> W
<br /> Date: May 15,2003
<br /> Subject: Northwest Quadrant Redevelopment -Development Proposal and Terms of
<br /> Development Agreement
<br /> On April 30, 2003, Ehlers and Associates, along with City Staff members and the City's Attorney, met
<br /> with the Development Team and their Financial Advisors to continue discussions on the financing of
<br /> the Northwest Quadrant redevelopment. The Development Team has refined their concept for
<br /> redevelopment to one option. Option 6 A includes the acquisition of Apache Plaza, SAV II/Tires Plus,
<br /> Apache Squares, Apache Offices, JA Cadawalder Office, Mini Mall and ponding located behind it,
<br /> ponding behind Cub Foods and a couple of Small HRA owned parcels along Silver Lake Road (map
<br /> will be provided at meeting). Following is the proposed development work plan:
<br /> Develo, went :Opti on#6A beyelo'meat Time Frame
<br /> Big Box 130,000 S /Ft 2004 -2005
<br /> Retail 69,000 S /Ft 2004 -2005
<br /> Office 25,000 S /Ft 2004 -2005
<br /> SAV II 8,800 S /Ft 2004-2005
<br /> Market Rate Apartments 192 Units 2005-2006
<br /> Senior Apartments 80 Units 2005-2006
<br /> Urban Town Homes 230 Units 2006-2007
<br /> Senior Co-Op 64 Units 2006-2007
<br /> 3-Story Town Homes 28 Units 2006-2007
<br /> Based upon these options,Ehlers and the Development Team have estimated that the cost to acquire all
<br /> the land, relocate existing businesses, demolish the structure and complete the public improvements
<br /> will cost between $20-22 million. To assist in offsetting this cost, the Developer has proposed the
<br /> following payment for land and special assessments for each development type:
<br /> -1VIarke.t
<br /> Sensor Sensor. Town` `
<br /> C osnmeresal hate. Urban Flats Total
<br /> 4 ►'pas tments Co-Op ., Homes' t
<br /> A artm6nts t
<br /> Land Cost $3,145,070 $640,000 $1,536,000 $672,000 $3,450,000 $840,000 $10,283,070
<br /> $4.50 s /ft)( $8,000/Unit $8,000/Unit $10,500/Unit $15,000/unit ($30,000/Unit)
<br /> Special $1,837,064 $229,200 $550,080 $113,581 $598,682 $171,471 $3,500,078
<br /> Assessment ($6.66 sq/ft) ($2,865/Unit) ($2,8651Unit) ($1,775/IJnit) ($2,603/Unit) ($6,124/L1nit)
<br /> Total $4,982,134 $869,200 $2,086,080 $785,581 $4,048,682 $1,011,471 1 $13,783,148
<br /> It should be noted that the above referenced numbers have not been finalized by all members of the
<br /> Development Team and Ehlers has requested that they finalize them within the next month.
<br /> LEADERS IN PUBLIC FINANCE
<br /> 3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555
<br /> Roseville, MN 55113-1105 skvilvang@ehlers-inc.com
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