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2 <br /> HRA Meeting Minutes <br /> June 22, 2004 <br /> Page 2 <br /> 1 The Development consists of 261 rental units, of which, 80 will be senior housing <br /> 2 units and the remaining 181 will be non-age restricted units. Twenty (20) percent <br /> 3 of the units will be affordable to persons at or below fifty (50) percent of the area <br /> 4 median income(52 units). <br /> 5 <br /> 6 The Agreement provides that the Developer shall commence with construction <br /> 7 not later than January 31, 2005, and complete the improvements by July 1, 2006. <br /> 8 The Development will be subject to customary City land use controls and <br /> 9 approvals, including a PUD Agreement and approval of Final Plans and Final <br /> 10 Plats. <br /> 11 <br /> 12 2. Assignment to Development Parties <br /> 13 The Development Agreement can be assigned to another party,but only with <br /> 14 consent of the HRA. <br /> 15 <br /> 16 3. Tax Exempt Bond Allocation <br /> 17 The Developer is requesting the City to issue tax-exempt conduit revenue bonds <br /> 18 in the principal amount not to exceed $37,500,000, to assist in constructing the <br /> 19 development. These bonds do not create any risk for the City, since they are <br /> 20 revenue bonds and are paid by project revenues. In addition, the bond amount <br /> 21 does not affect the City's or HRH's debt limits. <br /> 22 <br /> 23 The developer will be required to pay the City a fee in the amount of one (1) <br /> 24 percent of the principal amount of the bonds, in accordance with the City's <br /> 25 Conduit Financing Policy and the HRA will be required to hold a public hearing <br /> 26 on the issuance of these bonds as required by State Statute. <br /> 28 4. Tax Increment <br /> 29 A. Creation of a Redevelopment TIF District. The City and HRA have <br /> 30 created a Redevelopment TIF District. <br /> 31 <br /> 32 B. TIF Assistance. The Developer will receive ninety(90)percent of the <br /> 33 available TIF for 25 years on a Pay-As-You-Go basis, with a present value <br /> 34 (assuming no inflation) of approximately$3.4 million to $4.1 million. If a <br /> 35 two percent inflation factor is considered, this range would increase to <br /> 36 approximately$4 million to $4.8 million. The final assessed value of the <br /> 37 property will be determined by the County Assessor, and this final <br /> 38 valuation will be used to determine the final TIF amount. Those assessed <br /> 39 values are currently estimated in the range of$95,000 to $115,000 per <br /> 40 unit. The Developer will pledge their TIF note to the construction lender. <br /> 41 <br /> 42 C. TIF Adjustments. After the development is constructed and has received <br /> 43 its Certificate of Occupancy from the City, the Developer is required to <br /> 44 submit to the HRA, a final sources and uses statement from a certified <br /> 45 public accountant that is approved by the HRA. To the extent the sources <br /> 46 of funds exceeds the uses, the Developer will have thirty(30) days to <br /> 47 submit an amount equal to fifty(5 0)percent of the amount by which total <br /> 48 sources exceed total uses to the HRA. <br /> I <br />