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MEMORANDUM TO: Charlie Yunker – City Manager and HRA Executive Director FROM: Stacie Kvilvang - Ehlers DATE: March 23, 2021 SUBJECT: TIF Agreement -Development 65 Overview: In June and September of 2020, the City Council reviewed and discussed a request for public financial assistance from Development 65 in connection to the Hayden Grove Senior Living project at a work session. They are constructing a 135- unit senior rental facility consisting of independent living, assisted living and memory care units, of which 7 of the units (5%) will be affordable to persons at or below 50% of the area median income (AMI). Below are the terms of the TIF Agreement: 1. General a. Redevelopment Agreement is between the City, HRA and SA Senior Living LLC for the Development 65 Project b. Developer has deposited $10,000 escrow with the City to pay for all legal and financial consultant work in conjunction with sizing of the TIF note and preparation of the TIF agreement. If $10,000 is not adequate, the developer is required to deposit additional funds until all costs are paid in full. 2. Development and Timing of Construction a. Construction of an approximately 135-unit senior care facility with independent living, assisted living and memory care. b. Must commence construction by July 31, 2021 and be completed by July 31, 2023 3. Declaration of Restrictive Covenants a. The Developer will record a Declaration of Restrictive Covenants that will be in place for 15 years from date of Certificate of Occupancy that states: (1) 7 units (5%) will be affordable to persons at or below 50% AMI and the units will be mixed withing studio or 1-bedroom independent living or assisted living; (2) Rental rates are based upon the rents (inclusive of utilities) set by HUD on an annual basis; (3) Developer will annually report meeting the affordability requirement to the City; 77