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Project Background SEASONS OF RAMSEY is a proposed fifty (50) unit rental townhome development north of Bunker Lake Boulevard, east of Town Center Drive. The Development has been awarded financing from the MHFA, as indicated above. The conceptual site plan was reviewed by the City Council on March 13th, 2012, prior to the Developer submitting an application to MHFA. The Development is a re -plat of a portion of the existing TOWN CENTER GARDENS 3RD ADDITION. A portion of the roadway system was constructed, with a 'loop' roadway in lieu of a cul-de-sac. The Developer proposes to complete the connection of 147th Lane NW, so that a turn -around situation is no longer needed. As such, 147th Circle NW would be no longer needed for turn -around purposes. The previously built infrastructure limits the options available for development for the Plat. The Developer has stated the existing configuration, tailored to smaller, row -style townhomes, has posed a challenge in design of the Plat. The Developer has stated that he believes it has proposed a design that best balances today's market conditions and the options for design based on developable area. The site plan and Final Plat are scheduled to be reviewed by the City Council on February 12th, 2013, so any action by the HRA should be made contingent on necessary approvals related to site plan and subdivision by the City Council. Language to that effect has been included in the proposed resolution, stating that the resolution cannot be executed until such time the site plan and subdivision are approved by the City Council. Section 42 Tax Credits This program is administered locally by the Minnesota Housing Finance Agency. Tax credits are provided for the Developer, and subsidies are not given directly to the renter. However, the Project as proposed was awarded points based on rent rates being income restricted. The attached presentation prepared by the Developer outlines the income levels proposed by the Developer. In addition, the Project will be on -site managed by the Developer for a minimum of 30 years. This arrangement will be protected by deed restriction. If the Developer chose to remove itself from the Project and remove the deed restriction, the tax credits would need to be repaid to MHFA. The Section 42 Tax Credit Program has target incomes of $35,280 (1 person), $40,320 (2 person), $45,360 (3 person), $50,340 (4 person), $54,420 (5 person), $58,440 (6 person). The Developer has proposed rents at $779 per month (2 bedroom) and $469-$899 (3 bedroom). Architectural Concerns The Developer included conceptual drawings to the City as part of the request for the Preliminary Agreement to Develop. The Developer was amenable to Staffs initial concerns with architecture, and provided a revised product for review. At that time, it appeared that the City Council was generally acceptable of the architectural submittal; however some concern was raised and it was noted that the City may ask for additional architectural enhancements. Upon receipt of revised architectural renderings, Staff has noted to the Developer continued concerns with proposed architectural renderings based on previous feedback. Staff would recommend that additional architectural enhancements be provided as a contingency for recommendation for approval. These standards would also be reviewed by the City Council on February 12th. Title Objections The Developer has requested that the HRA clear certain title objections to Outlot C. The Developer is working with the HRA's legal counsel, Mr. Tom Bray, at the Developer's cost. It is anticipated that these objections will be resolved. Housing Assistance Policy The City Council previously directed Staff as part of this request to develop a Housing Assistance Policy to assist the HRA and City Council in ranking and prioritizing requests for financial or other assistance from housing developers. Staff is still in early stages of developing this draft and anticipates completion in 2013. If the HRA desires, Staff can reprioritize and make development of this policy a priority in the first quarter of 2013.