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To: Mike Mornson — City Manager From: Stacie Kvilvang — Ehlers and Associates UJ Date: October 14, 2008 Subject: Pratt 'Request to Change Phase 113 Housing Development On February 5, 2008, the City Council met in a work session to hear a presentation from Len Pratt, Housing Developer for Silver Lake Village, on a revised concept for the Phase IB housing. Mr. Pratt presented an option to change the type and number of units to be constructed in Phase 113 from 128 Condominiums (for sale) to 100 Cooperative Senior Units (for sale). In addition, lie introduced his potential new development partner, Cooperative Communities. At the March 18, 2008 work session, Council reviewed additional information regarding the proposal and requested that staff bring back a resolution to authorize proceeding to negotiate a 7°i amendment to the Development Agreement to allow for the change in type of housing to be developed as part as Phase IB. On April 8, 2008, the City Council approved a resolution directing staff to draft a 7°i amendment to the Development Agreement, allowing: 1. The change in use for the Phase IB housing from 128 condominiums to a 100 units of senior cooperatives 2. Extend the date for which construction should commence by to September 1, 2009, since the developer informed them that due to market conditions, he would be unable to meet the September 1, 2008 construction start date (one year extension). In addition, the Council provided staff direction that the amendment would not be brought back to them for approval until the developer was certain that senior cooperatives were a viable alternative and/or had attained the required 60% presales for financing purposes (HUD has recently increased this to 70%). The 7°i amendment has been drafted but never brought before the City Council for approval since the developer has not met the presale requirements yet. The developer has been working on the presales since June and has 26 reservations. They stated that the summer months were typically slow for sales due to summer travel by seniors, that things would pick up in the fall, LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555 Roseville, MN 55v.3-uo5 skvilvang@ehlers-inc.com EHLEKb 34 LEADERS IN PUBLIC FINANCE To: Mike Mornson — City Manager From: Stacie Kvilvang — Ehlers and Associates UJ Date: October 14, 2008 Subject: Pratt 'Request to Change Phase 113 Housing Development On February 5, 2008, the City Council met in a work session to hear a presentation from Len Pratt, Housing Developer for Silver Lake Village, on a revised concept for the Phase IB housing. Mr. Pratt presented an option to change the type and number of units to be constructed in Phase 113 from 128 Condominiums (for sale) to 100 Cooperative Senior Units (for sale). In addition, lie introduced his potential new development partner, Cooperative Communities. At the March 18, 2008 work session, Council reviewed additional information regarding the proposal and requested that staff bring back a resolution to authorize proceeding to negotiate a 7°i amendment to the Development Agreement to allow for the change in type of housing to be developed as part as Phase IB. On April 8, 2008, the City Council approved a resolution directing staff to draft a 7°i amendment to the Development Agreement, allowing: 1. The change in use for the Phase IB housing from 128 condominiums to a 100 units of senior cooperatives 2. Extend the date for which construction should commence by to September 1, 2009, since the developer informed them that due to market conditions, he would be unable to meet the September 1, 2008 construction start date (one year extension). In addition, the Council provided staff direction that the amendment would not be brought back to them for approval until the developer was certain that senior cooperatives were a viable alternative and/or had attained the required 60% presales for financing purposes (HUD has recently increased this to 70%). The 7°i amendment has been drafted but never brought before the City Council for approval since the developer has not met the presale requirements yet. The developer has been working on the presales since June and has 26 reservations. They stated that the summer months were typically slow for sales due to summer travel by seniors, that things would pick up in the fall, LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Phone: 651-697-8506 Fax: 651-697-8555 Roseville, MN 55v.3-uo5 skvilvang@ehlers-inc.com