Agenda - Economic Development Authority - 06/04/2015

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• DOMINIUM May 13, 2015 Mr. Patrick Brama The City of Ramsey 7550 Sunwood Drive SW Ramsey, MN 55303 RE: City Parcel #'17 at the COR in Ramsey, MN Dear Patrick: Dominium Development & Acquisitions, LLC ("Buyer") is interested in purchasing from the City of Ramsey ("Seller") the site described below, located in Ramsey, Minnesota. Dominium plans to construct an approximately 124 unit senior, affordable, independent living property on the site using the Section 42 LIHTC program. Equity for the Project will be generated through the sale of 4% Low Income Housing Tax Credits allocated by MHFA. Tax -Exempt housing revenue bonds issued by the City of Ramsey will finance the first mortgage on the Project. The proposed development will feature urban architecture in line with the design standards of the COR and fits well in the context of the COR Master Plan and vision. Furthermore, an affordable, senior independent living apartment complex meets the top priorities of the City's Housing Assistance policy. Financing Gap: The proposed development currently has a fmancing gap of approximately $2,600,000. In order to move forward with the potential development, Dominium will need a commitment from the City of Ramsey to fund $2,200,000 of this gap. Funding could be in the form of TIF, development fee waivers, a land write down, or other sources of funds for the Project. Dominium will take on the risk of filling the remaining $400,000 gap through Anoka County or MetCouncil funds. If funding for the Project from Anoka County and MetCouncil exceeds the remaining $400,000 gap, the funds will be credited toward the $2,200,000 from the City of Ramsey to reduce the City's commitment. This letter is intended to outline the terms and conditions of the purchase of the property by Buyer from Seller. Please consider the following proposed terms and conditions: 1. PROPERTY: Approximately 4.94 acres, or 215,186 sf, in Ramsey, MN located at the corner of Sunwood Drive and Zeolite Street NW, Property ID: 28-32-25-23- 0010. 2. SELLER: 3. BUYER: The City of Ramsey Dominium Acquisition, LLC, or an applicable affiliated entity.