Agenda - Council - 11/23/2010 - Laserfiche WebLink

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Memo To: Kurt Ulrich — City Administrator From: Stacie Kvilvang Date: November 23, 2010 Subject: COR Apartments - Development Proposal and Terms of Development Agreement and Other Obligations Flaherty & Collins has submitted their concept for development of the COR Apartments which will consist of approximately 216 market rate apartments, 14 market rate, rental town homes and approximately 3,000 sq /ft of retail. Based upon the above referenced development program, following is a listing of the proposed business terms for the Development Agreement and other obligations: 1. General a. Developer. The Developer is F & C Ramsey, LLC, an Indiana limited liability company, which is a single asset entity. 2. Purchase Agreement a. General. The HRA currently owns the land and a Purchase Agreement between them and the Developer will be executed contemporaneously with the execution of the Development Agreement. The HRA's obligation to sell is contingent upon the Developer providing the HRA with reasonable acceptable evidence that they have obtained all necessary governmental approvals to build the project and have obtained financing sufficient to finance 65% of the construction costs. The Developer is obligated to purchase Lot 3, Block 1, COR ONE, for a purchase price of $250,000 and is contingent upon their determination, on or before December 31, 2010, that the condition of the property is acceptable to them and that various other conditions outlined in the various agreements have been met (amendment to parking agreement, special service district ordinance, obtaining permits to construct the project, obtaining financing and securing of a rail stop). Currently it is anticipated that the closing will be completed by April 29, 2011. The HRA's obligation to sell is also contingent upon the HRA's detennination, on or before January 14, 2011, that the City will secure a stop on the North Star Commuter Rail Line and construct a stop and station on or before July 1, 2012. b. Right of Reverter. The HRA has the authority to commence an action in court seeking an order that re -vests title of the property to the HRA and grants the HRA immediate possession of the property if the Developer fails to substantially complete construction on or before June 30, 2013, or if the construction lender commences proceedings to foreclose the construction loan prior to Developer's substantial completion of the project. The HRA agrees that the it will subject its interest in the property to the lien of any construction loan provided that the construction lender acknowledges in writing that if they foreclose and the HRA obtains a court order re- vesting title to them, the HRA shall be entitled to redeem the property /project from foreclosure. EHLERS 0 LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive Roseville, MN 55113 -1105 Phone: 651 - 697 -8506 Fax: 651 - 697 -8555 skvilvang @ehlers- inc.com