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

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CC Regular Session Date: 11/23/2010 By: Darren Lazan Community Development Information Title: Consider Development Agreement for The Residence at The COR - LOT 3, BLOCK 1, COR ONE Item #: 7. 5. Background: The development team has been working with Flaherty and Collins, LLC of Indianapolis, Indiana since October of 2009. Flaherty and Collins is interested in developing transit oriented, upscale apartments in The COR adjacent to and utilizing the existing parking structure. In late April, Flaherty and Collins delivered an LOI which was considered by the team, summarized, and presented to the HRA on April 23rd, 2010, and again on October 19, 2010 where there was considerable discussion. Direction was given by the HRA at the October 19th meeting to continue negotiations with the developer and prepare the formal documents for consideration by both the City Council and the HRA. We have continued to work with the developer to structure an agreement around those deal points. Observations: Attached for your consideration as the City Council tonight is the Purchase Agreement, one of several components of the contract documents. Also attached to this case: • A summary of all documents, and when we anticipate those coming forward for various approvals by both the HRA and the City Council. • Memo from Ehlers , the HRA's financial consultant on this project. In the Development Agreement the City represents and warrants that it has the power to execute the Development Agreement and perform its obligations under the Development Agreement and that the contemplated development conforms with the City's Development Program for Development District No. 1. If the City approves the creation of the new TIF District and adopts an appropriate TIF Plan, the City must pay to F & C Ramsey, LLC ( "F & C ") up to $2,000,000.00 of Tax Increments together with interest thereon on a "pay as you go" basis pursuant to the TIF Note attached as Exhibit B. The City is also obligated to lend F & C up to $1,420,000.00 pursuant to the terms of the City Loan Agreement and the City Note attached as Exhibits C and D. F & C may use the proceeds of the City Loan to pay hard and soft costs associated with the development of the Project. The City is not obligated to disburse the proceeds of the City Loan until F & C has commenced construction of the Project and spent at least $1,300,000 of equity on the Project. Lastly, the City is obligated to install way finding and stall designation signage in the parking ramp addition for the benefit of F & C.