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City Council Regular Meeting Minutes November 14, 2006 Page 7 2 E. Update on Issues with Silver Lake Village Project. 3 4 Ms. Stacie Kvilvang, Ehlers and Associates, employed a power point presentation to explain the 5 overall Silver Lake Village project to date and the upcoming improvements for the next year. 6 She began by pointing out the locations of the different buildings involved in the project in Silver 7 Lake Village including: Phase I For Sale Housing, Rental Housing, and the Commercial areas. 9 Ms. Kvilvang stated the commercial property was the first component completed. She explained 10 that as part of setting up the tax increment and agreement for financing, a look back provision is 11 conducted. She stated that during the look back an audit of expenses for qualified TIF costs is 12 conducted to make sure they were expended and any cost savings are issued back to the HRA 13 and the developer. She explained they looked at four categories: relocation of tenants in Apache 14 Plaza, Apache operating costs and loan carry costs and demolition. 15 16 Ms. Kvilvang stated Ehlers and Associates received the required documentation for review. She 17 reported the review is complete and savings were found. She explained where the savings were 18 realized in each category. She reported the total budget for the project was $1,443,400 with an 19 actual cost of $863,485 resulting in a savings of $579,915. 20 21 Ms. Kvilvang report the savings could be used based on the development for cost overruns in the 22 development. These cost overruns included curb, gutter, and the realignment of 39`h Avenue 23 totaling $150,000. She stated the second cost over run project was for the retaining wall behind 24 Wal -Mart and the rental building. Ms. Kvilvang explained $139,958 of the savings went to the 25 commercial developer and $139,958 was awarded to the HRA. She explained the developer 26 issued a check to the HRA for $139,958 retained a total of $439,957. 27 28 Ms. Kvilvang explained the net TIF revenue bond proceeds available was about $4,730,368 29 million. She stated the principle note amount was $2,554,583 and the interest paid out from 30 April 30, 2003 to July 31, 2006 was $329,336 with net TIF funds to the HRA amounting to 31 $1,855,449. 32 33 Ms. Kvilvang pointed out where the available TIF proceeds exist to date: commercial TIF 34 revenue bond proceeds in the amount of $1,855,449; the first half of 2006 TIF proceeds at 35 $137,958; developer payment to the HRA for commercial TIF savings at $139,958 for a total of 36 $2,133,362. 37 38 Ms. Kvilvang explained the available TIF proceeds was used for repayment of an inter fund loan 39 back to the HRA account in the amount of $288,733 and a payment to Silver Lake Homes for 40 $360,777 for public improvement costs that exceeded City revenues including roadways, 41 sidewalks, lighting, landscaping, and storm water ponding. Ms. Kvilvang stated net proceeds 42 available for the Foss Road Lift Station total $1,483,852. 43 44 Ms. Kvilvang stated 91 percent of the 261 rental housing units are occupied. She explained that 45 most of the vacancy is in the senior market rate units. Ms. Kvilvang displayed photos of the 46 lobby, the rental unit interior, the community building, and the home theater room.