HRA MINUTES 04142009 - Laserfiche WebLink

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Housing and Redevelopment Authority Meeting Minutes April 14, 2009 Page 2 repaid through land sale proceeds (estimated at $1.5 million) and tax increment that is generated when the developer capitalizes its PAYG TIF note when it commences with construction. Commissioner Stille requested an explanation on whether the economics still work with the land sale. Ms. Kvilvang replied that the balance of the loan will be approximately $9,950,000 after the land sale. Projected TIF revenue provides adequate proceeds to pay off the loan balance. 8 Mayor Faust requested comments from the City Attorney regarding Fannie Mae's requirement for an 9 assignment of the HRA's mortgage on the property. City Attorney Lindgren stated he agrees with Ms. 10 Kvilvang that providing the assignment does not really increase the risk to the City. He stated it creates I 1 an additional burden to go through, but the likelihood of Fannie Mae ever foreclosing on the mortgage is 12 remote. 13 14 Motion by Commissioner Gray, seconded by Commissioner Roth, to approve Resolution 09 -007, 15 Authorizing Assignment of Mortgage, Assignment of Leases and Rents and Fixture Financing Statement 16 Concerning Extension of Credit Facility from Fannie Mae. 17 18 Motion adopted unanimously. 19 20 B. Silver Lake Village Update. Stacie Kvilvang, Ehlers & Associates, presenting, 21 22 Ms. Kvilvang reported that 111 of the 130 units in the condominium buildings have had closings, 3 units 23 are pending sales and 3 are reserved. A total of 16 units are remaining. Of the 26 single level 24 townhomes, there are 21 units that have been sold or are under contract with the sale pending. 25 26 Mr. Len Pratt, Developer of Silver Lake Village, stated the City of St. Anthony is held in high regard 27 with an outstanding school system and streets that are in good repair comparatively to the immediately 28 surrounding areas. He reported on recent sales of existing homes in St. Anthony and Northeast 29 Minneapolis that point to a possible recovery in the marketplace. Mr. Pratt provided an update on Silver 30 Lake Village, Phase 1B Housing. The housing plan consists of 120 units including 40 senior cooperative 31 homes and 80 senior rentals with services to include health care and memory care units. Mr. Pratt stated 32 the local head of HUD is in favor of HUD supported financing on this final phase of housing. The goal 33 is to get this project in the ground in 2009. 34 35 Commissioner Stille inquired about the next step with the Phase 1B housing. Mr. Pratt stated a session is 36 scheduled for tomorrow for timeline planning. He hopes to have the health care provider and the builder 37 attend a Council workshop within the next 60 days. 38 39 Ms. Kvilvang stated based on Mr. Pratt's update, staff will be looking to present the City Council and 40 HRA with a 7ch amendment to the Development Agreement in the next 30 to 60 days. 41 42 City Manager Momson indicated that an amendment to the existing PUD will be coming forward as 43 well. 44