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HRA Regular Session 6. 1. Meeting Date: 08/27/2013 Submitted For: Kurt Ulrich By: Jo Thieling, Administrative Services Title: Executive Director's Report Information Background: Stoney River Housing Development First Phoenix Group, the Developer of the Stoney River project, a 72 -unit Assisted Living /Memory Care facility adjacent to Lord of Life Church, is scheduling a groundbreaking ceremony the week of September 16th. Staff will follow up with formal invites when a date is selected. First Phoenix Group closed on their construction loan this week and hope to start construction the first week of September. It was a long road for this group to get to this point, and we feel this is a quality housing development that will add great value to the community from a housing need and tax base perspective. The Building Permit Application indicates an investment of $8.5 million dollars. McDonalds Restaurant Staff met with McDonalds this week and we are anticipating closing on the 1.36 acre site in October. The purchase price on the property was $470,000. Unfortunately, with an October closing on the property, McDonalds has decided to plan for a spring 2014 construction. The Purchase agreement gives them up to two years after closing to begin construction, but they seem committed to the spring 2014 start. Much of the delay in the closing goes back to the fact that Landform filed a mechanic's lien that delayed the filing of the plat. Otherwise, the completion of the site improvements and subsequent review of title, recording of easements, etc. required time to complete, and to be reviewed by McDonalds. The Residence at the COR Approximately 140 units have now received certificates of occupancy. Recent conversations with the property manager indicate that 30 units have now been leased out. Landform Contract Wrap -up The City has finally received the intellectual property (e.g., COR graphic, documents, spread sheets, engineering drawings, etc.) and are in the process of verifying the information. The City was withholding the $80,000 incentive fee on The Residence at the COR, and now likely will make partial payment, pro rata based upon number of units occupied. Properties for Sale The City (not the HRA) is now the owner of the Adult bookstore property on Highway 10 and a residential property on Rivlyn Avenue (kiefer property). The bookstore has been razed and we are doing asbestos abatement on the Kiefer property prior to demolition. It is recommended that both properties be put up for immediate sale. TIF District 14 (the COR District) The study authorized by the HRA of the COR TIF District has been completed and I would like to schedule a Special meeting on September 17 (Committee night), 7:00 pm to have Ehlers report their findings and recommendations. Funding Source: