08/15/11 Work Session - Laserfiche WebLink

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HRA Work Session 5. 1. Meeting Date: 08/15/2011 By: Darren Lazan, Housing & Redevelopment Authority Title: Consider Proposed Deal Structure - The Residence at The COR Project (Portions may be closed to the public) Background: Over the past several months, work has continued on finalizing a financing package for the Flaherty and Collins - The Residence at The COR project. City representatives have met with Flaherty and Collins representatives at the ICSC conference in May, which included a representative of PNC Bank, the source of primary financing on the deal. In a followup meeting in Minneapolis, the development team met again with Flaherty and Collins and three Representatives of PNC Bank. In previous worksessions, the HRA has considered several options to participate in the construction financing and facilitate a project start in either the fall of this year, or spring of 2012. On June 30th, 2011 PNC Bank approved the project in committee with direction to modify the appraisal based on a number of discussions over the last several weeks. Subsequently, a commitment letter was received by F & C from PNC outlining the proposed loan. With the HRA approval of June 28, to modify the approved TIF structure setting the principal after completed plans are available to the assessor, the development team will work to finalize the deal terms necessary to commence construction on the proposed schedule. Subsequent to the June approval by PNC, the appraisal was modified as discussed and a final commitment letter sent from PNC to F &C with their final terms. While the deal structure is generally in line with previous discussions, there were several financial conditions in the PNC commitment that may not be acceptable to the HRA. Stacie Kvilvang with Ehlers and /or Thomas Bray form Briggs and Morgan will be present for the worksesion to review the financing structure and deal components being proposed for the project. Staff will also review with the HRA the proposed modifications to the currently approved deal structure, as well as potential alternative financing structures for your consideration. Notification: Observations: Recommendation: The development team recommends the HRA consider the current financing proposal as well as potential alternative solutions to facilitate the proposed project. Funding Source: Council Action: