CC MINUTES 11082005 (2) - Laserfiche WebLink

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City Council Regular Meeting Minutes November 8, 2005 Page 3 1 C. Consider Resolution 05 -088. re: Phase 2 Silver Lake Village Stacie Kvilvang Ehlers and 2 Associates. 3 Stacie Kvilvang reviewed the development proposal and terms of development agreement with 4 the Council and indicated that Phase IIA will be comprised of 26 town homes and start in June 5 2006, Phase IIB will be comprised of 90 senior housing units and will start in June 2007, and 6 Phase IIC will be comprised of 55 housing units and will start in June 2008. There are seven 7 properties that will need to be acquired. The total project cost is approximately $8 million. 8 Phase II is pretty much identical to Phase I, which was approved. She reviewed land use and 9 development controls, property acquisition, and tax increments. The Phase II development will 10 generate approximately $6.2 million in tax increments and will require approximately $5.8 11 million. The interfund loan reimbursement will be made in the maximum amount of $1 million 12 at the discretion of the HRA. She reviewed the below market profit TIF assistance increase, look 13 back provision, condemnation, advancement and reimbursement to redeveloper, master 14 developer fee, default, and Phase II development budget. 15 16 Councilmember Stille asked how the development proposal compares to the design framework 17 manual for the project. Ms. Kvilvang replied it is in line with what the community wants to see 18 in terms of value. 19 20 Councilmember Stille asked regarding the interfund loan what does proof of financing actually 21 mean. Ms. Kvilvang replied the developer must provide proof of committed bank financing. 22 23 Mr. Morrison stated the interfund loan maximum amount is $1 million. Ms. Kvilvang replied 24 that is correct, it is repaid through several financing sources, including the sellback of Don's Car 25 Wash, future tax increments, and any excess tax increments from the development. 26 27 Mr. Morrison asked if there would be a TIF note for each phase. He also asked for clarification 28 on the Phase IIA start date of June 2006. Ms. Kvilvang replied there would be a TIF note for 29 each phase. She added in June 2006 the developer would request building permits. 30 31 Councilmember Stille asked if all three sub - phases are encompassed in the development 32 agreement. Ms. Kvilvang replied correct; but Phase IIC can be refined based on the market. 33 34 Councilmember Thuesen asked what is a patio home. Ms. Kvilvang replied usually a town home 35 but with a higher value of approximately $350,000 each. 36 37 Mayor Faust indicated two properties have purchase agreements and asked if independent 38 appraisals have been done. Ms. Kvilvang replied she would refer the question to the developer. 39 40 Councilmember Stille asked the timeframe to pay back the TIF notes. Ms. Kvilvang replied 41 everything is set up on a 26 -year district; however, the time has shortened so probably 24 years. 42 43 Mr. Morrison asked if there would be one TIF note encompassing Phase I and Phase II. Ms. 44 Kvilvang replied they would be underwritten as two separate notes due to financial risks. 45 46 Councilmember Stille asked about acreage. Ms. Kvilvang replied Phase IIA is about 2.5 acres, 47 Phase IIB is about 1.5 acres, and Phase IIC is about ' /< acres, for a total of about 4 3/< acres.