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HRA Meeting Minutes 3 <br /> June 22, 2004 <br /> Page 3 <br /> 1 <br /> 2 5. Miscellaneous <br /> 3 A. Developer Fee. The Developer will defer payment of their development <br /> 4 fee until after the development has been constructed. <br /> 5 <br /> 6 B. Timing. The Developer will, subject to Unavoidable Delays,begin <br /> 7 construction by January 31, 2005, and complete the project by July 1, <br /> 8 2006. <br /> 18 <br /> 11 Commissioner Horst questioned the $4.7 million estimate on the TIF assistance. Ms. Kilvang <br /> 12 stated that the estimate could be less or more which would be determined based upon the <br /> 13 valuation of the property, and at what level the developer will be able to sell the bond as a <br /> 14 mortgage on the property. <br /> 15 <br /> 16 Commissioner Horst continued in questioning how the 20 percent figure on the affordable <br /> 17 housing was derived. Ms. Kilvang answered that it was set by the financing of the bonds. She <br /> 18 added that as a statutory requirement they have an option of 20 percent at 50 percent of the <br /> 19 median income or 40 at 60 of the median income, and 20 percent was chosen. <br /> 20 <br /> 21 There was discussion regarding the addition of the affordable housing component adding to the <br /> 22 need for assistance due to land costs, as well as the range in reported debt fluctuation. <br /> 23 <br /> 24 Commissioner Thuesen noted how complex the project has been and the fact that a project like <br /> 25 this does not "just happen." <br /> 26 <br /> 27 Chair Hodson agreed with Commissioner Thuesen noting that due to the Staff the City has been <br /> 28 able to make the project happen. He noted that the residents may not be aware of the difficulty <br /> 29 involved in planning these types of projects in the middle of a metropolitan area. <br /> 30 <br /> 31 Commissioner Faust noted that the Council, in conjunction with Ehlers and Associates,made a <br /> 32 conscious decision to go with 20 percent, on the affordable housing component, which lead to . <br /> 33 the TIF number. <br /> 34 <br /> 35 Motion by Commissioner Faust, seconded by Commissioner Thuesen, Approving Resolution 04- <br /> 36 010, Relating to the Redevelopment of Property in Redevelopment Project Area No. 3 and <br /> 37 Authorizing the Preparation, Execution and Delivery of a Rental Housing Associates I, Limited <br /> 38 Partnership. <br /> 39 <br /> 40 Motion carried unanimously. <br /> 41 <br /> 42 V. STAFF REPORTS. <br /> 43 None. <br /> 44 <br /> 45 VI. H.RA COMMISSIONER COMMENTS. <br /> 46 None. <br /> 47 <br /> 48 <br />