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4. EDA BUSINESS 4.01: Consider Dominium Development & Acquisitions, LLC Letter of Intent Econ. Dev. Mgr/Assistant City Administrator Brama presented the staff report and asked the Commission to consider the Letter of Intent from Dominium Development & Acquisitions, LLC. He noted this item could be discussed in a Closed Session if the Commission wished. Ms. Stacie Kvilvang, Ehlers and Associates, outlined the threshold they put together regarding this item. Econ. Dev. Mgr/Assistant City Administrator Brama stated they reviewed this document in detail with Ehlers and reviewed the LOI with Dominium and when they talk about a market comparable deal they would be looking at closer to $10,000 per unit and a total of 4-6 percent of the total project as a subsidy from the City, over 15 years of TIF. Those are the types of thresholds they want to see as a maximum in LOI or at least have Dominium approach those market averages and then bring the LOI back to the City. This is what was discussed and what staff is recommending to go back with to Dominium. Chairperson Steffen asked if the deferred development fee was $1.9 million dollars and would they have that out of the project by the time the permitting and financing is done or is it deferred longer than that. Ms. Kvilvang stated typically it is paid out of cash flow and depends on what the cash flow is. Sometimes it can take up to ten years to get the deferred development money back. It depends on how the project is performing. Member Riley stated he would like to hear why Ms. Kvilvang was listed as a reference and what her relationship is with Dominium. Ms. Kvilvang stated she was listed as a reference because she has worked with Dominium in so many cities on different projects and has looked at their projects for assistance. They know she understands the process of how tax credits are financed and also understands the public process of policy on the other end. She stated Dominium viewed her as a fair judge of their projects. Chairperson Steffen asked what Ms. Kvilvang's experience is working with Dominium. Ms. Kvilvang reviewed her work experience with the Commission. Chairperson Steffen asked if the City had a counter offer in mind in terms of how they would respond to this. Econ. Dev. Mgr/Assistant City Administrator Brama suggested staff would work with Ehlers and would discuss the 15 year maximum TIF rules and the maximums that are outlined in this document. Staff would provide feedback to Dominium that the City is looking for something Economic Development Authority/June 4, 2015 Page 2 of 9