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31 <br />Mike Morrison <br />Development Agreement — Phase III Silver Lake Village Redevelopment <br />August 10, 2010 <br />Page 3 <br />development that is not needed to pay principle and interest on the tax-exempt revenue <br />bonds (basically unused coverage on an annual basis). Current estimates show that this <br />principle amount would be repaid over the term of the district. <br />4. Conveyance of Vacant Apache Office Site (North portion of Phase IIIA) <br />a. Conveyance to the City/HRA. Apache Redevelopment LLC will deed this portion of <br />Phase IIIA to the City/HRA for $1.00. They are required to deed the land free and clear of <br />all monetary liens, and subject only to those encumbrances currently listed (prior lien from <br />an architect that did drawings for a Redeveloper that was looking to develop the site). <br />b. Repurchase of the Vacant Apache Office Site (North portion of Phase IIIA). Apache <br />Redevelopment LLC or another third party Redeveloper can purchase this property from <br />the City/HRA for Fair Market Value (FMV) determined by the City (based upon the <br />proposed development) or a lesser amount if the City/HRA deem appropriate. In order for <br />any Redeveloper to purchase the parcel they have to have approved plans by the City/HRA <br />and have proof of financing for the project. If Apache Redevelopment LLC fails to meet <br />the December 31, 2011 commencement of construction date, the rights to purchase this <br />parcel terminate. <br />At this time, it is anticipated that the site will be sold to a senior cooperative housing <br />developer to construct approximately 40 units beginning in the spring/summer of 2011. <br />Apache Redevelopment LLC has received a purchase agreement for the site in the amount <br />of $400,000 and is working with the cooperative developer to finalize the purchase <br />agreement. This purchase price and the corresponding development make this the FMV for <br />the property and these proceeds would be paid to the City for reimbursement on the Fannie <br />Mae loan. <br />It should be noted that it is anticipated that the senior cooperative will only need to utilize <br />75 to 80 percent of the site. The remaining portion of the site will be made available for <br />sale to the senior apartment developer who will be purchasing the south '/2 of the Phase IIIA <br />property (JA Cadawallader site). The land sale proceeds will be divided between the City <br />and Apache Redevelopment LLC on a prorated basis (based upon square footage of the <br />site). The City's portion will be to reimburse them for the Fannie Mae loan and the <br />Redeveloper's portion will be pay off the bank loan. <br />5. Phase III Tax Increment <br />a. Use and Amount of Increment: <br />Phase IIIA. All the tax increment generated from Phase IIIA (former Apache Office site <br />which is currently vacant and the JA Cadwallader site) will go to repay the City for <br />payment on the Fannie Mae Loan. It is currently estimated that Phase IIIA will be <br />developed as two separate elements. The first development will be a 40 -unit senior <br />cooperative with development commencing in the first quarter of 2011. A Redeveloper has <br />been identified and Apache Redevelopment LLC, is reviewing the purchase agreement for <br />the site. The second development will consist of 80 to 100 units of senior apartments. <br />Currently no developer or timeline has been identified, but Apache Redevelopment LLC is <br />