Agenda - Economic Development Authority - 06/04/2015

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Economic Development Authority (EDA) Meeting Date: 06/04/2015 Submitted For: Patrick Brama, Administrative Services By: Patrick Brama, Administrative Services 4. 1. Title: Consider Dominium Development & Acquisitions, LLC Letter of Intent (portions may be closed to the public) Purpose/Background: PURPOSE Consider attached Letter of Intent (LOI) from Dominium Development & Acquisitions, LLC. NOTE: if the EDA wishes, this case may be discussed in closed session. Closed session discussion shall be limited to reviewing the City's pricing strategy and developing a counter-offer (including all pricing and relevant terms). BACKGROUND Dominium is a national affordable housing development and management company (click here for a link to Dominium website: http://www.dominiumapartments.com/about-dominium.html). Dominium is considered by many within the real estate industry to be a quality development company with a solid track record of quality projects. Over the past 30-45 days, staff has discussed the opportunity of a potential senior independent living project located in The COR with Dominium. On April 27, 2015 Dominium submitted a LOI for 4.94 acres of City owned land located between Coborn's and the future Common Bond Project. Dominium is offering the City's asking price ($5.00 per square foot). The proposed project is valued by Dominum at $24.1M, includes 124 units, and is anticipated to look similar to a recently completed senior independent living project in Saint Anthony Village (http://www.landingsatsilverlakevillage.com/). Staff has reviewed COR development standards with Dominium; and, the concept plan Dominium has outlined appears to generally comply at this point. After the original LOI was submitted on April 27, it was reviewed by Staff within the context of the City's adopted Policy for the Sale of City of Land. Comments were submitted to Dominium; attached is an amended and updated LOI. It is Staffs opinion, the major topic of discussion for the EDA and City Council is the requested City financial assistance Notification: NA Observations/Alternatives: OBSERVATIONS Based on the attached and adopted City Housing Assistance Policy (and Policy for the Sale of City Owned Land), below are the next steps in this process: 1. Council consider project concept and willingness to conceptually provide financial assistance to the project. The City would sign the LOI with Dominium. NOTE: this would not legally obligate the City to any specific level of assistance. With this step, staff will also recommend review of a concept plan by the Planning Commission. 2. Dominium submits a formal business subsidy application for detailed review and underwriting by Ehlers. A recommendation for the actual "required/ needed" level of financial assistance is provided by Ehlers. NOTE: this could be different than what was agreed upon in the LOI.