Agenda - Council - 09/27/2011 - Special

Home

CC Special Session Meeting Date: 09/27/2011 By: Darren Lazan, Housing & Redevelopment Authority Title: Adopt Resolution Approving Purchase and Development Agreements — The Residence at The COR 4. 1. Background: At it's December 14, 2010 meeting, the City Council approved the purchase agreement and development agreement for The Residence at The COR, a 230 unit market rate apartment project to be constructed on HRA property described as Lot 3, Block 1, COR ONE, to be recorded at the time of closing. This project would connect to, and utilize the existing and newly expanded Municipal Parking Ramp, and in conjunction with the Municipal Center and the new Northstar Station represent full utilization of the completed parking structure. Subsequent to that agreement, the buyer /developer encountered difficulties obtaining adequate private financing based on a number of issues related predominantly to the history of RTC, and the lack of projects in the area comparable to The Residence project, and what the community has envisioned for The COR. Over the last six months, the development management team has worked with the developer, their primary lender, and our financial and legal consultants to structure a financing option that allows the HRA to participate in the construction financing, closing the gap between the private lender and the costs of construction. This `gap financing' would run alongside the private lender and allow the project to commence in the spring of 2012. The HRA loan would be funded with TIF Revenue Bonds and be backed with a variety of corporate, personal, and development entity guarantees. The attachments herein outline the proposed amended and restated Purchase and Development Agreements in both summary and detailed fashion. The development management team will provide an overview of the package and be available to answer any questions the HRA may have. Notification: Observations: Recommendation: The development team recommends the City Council adapt the resolution approving the amended and restated purchase agreement The development team recommends the City Council direct counsel to prepare final documents for execution incorporating changes discussed, and delivery to the buyer. Funding Source: Existing TIF Funds, TIF Revenue Bonds, Land Sale Proceeds Council Action: