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EHLERS16 <br />LEADERS IN PUBLIC FINANCE <br />OTo: Mike Mornson — City Manager <br />2 From: Stacie Kvilvang — Associate Financial Advisor <br />UJDate: September 25, 2007 <br />Subject: Sixth Amendment to Development Agreement With Apache <br />Redevelopment LLC <br />On November 14, 2006, the City approved a 5°i Amendment to the Redevelopment Contract <br />with Apache Redevelopment LLC. This amendment provided for two things: <br />1. It extended the dates to commence construction of the residential condo buildings by one <br />year to September 1, 2007 for building 43 and September 1, 2008 for building 44; and <br />2. It split the TIF PAYG Note into two notes (separate Note for each building) <br />The developer is working with their lender on the financing package for building #3 and <br />anticipates beginning construction by the summer of 2008. In addition, they anticipate <br />beginning construction on building #4 by the summer of 2009. Based upon this new schedule, <br />the developer has requested that the dates approved as part of the 5°i Amendment be changed <br />to September 1, 2008 for building #3 and September 1, 2009 for Building #4 (1 year delay). <br />Due to the increased value we are seeing at the project (higher sales prices than originally <br />projected), this additional one year delay will not jeopardize or decrease the amount of TIF <br />that will be needed to satisfy the required PAYG TIF Notes pursuant to the original <br />Development Agreement ($3,432,758). <br />Please contact me at 651-697-8506 with any questions. <br />cc: File <br />LEADERS IN PUBLIC FINANCE <br />306o Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555 <br />Roseville, MN 5S"3-1105 skvilvang@ehlers-inc.com <br />