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Chairperson Steffen asked how long it will take to build out phase one. <br /> Mr. Bona stated they are trying to determine what size phase one will be. Assuming they will <br /> have fifty or so lots, they anticipate that will happen in a twelve to eighteen-month period once <br /> they gain some momentum. He stated they have a different product type of homes that will be in <br /> the project. He noted they have removed the townhomes on the far south side and left them on <br /> the north side of the project. <br /> Mr. Bona stated they have not gotten into the details about the assessment and how it would be <br /> paid back. In past practice, they have had a five-year term on assessments like this but they <br /> would divide out the total assessment by units that are envisioned to pay it back. He noted that <br /> phase one is not all of the units and it would have to be based on phase two as well but the <br /> minimum assessment payment could be made each year versus waiting until year five. He stated <br /> the benefit to them is it spreads out their cost and they would not need it to be pushed out to year <br /> five because as they are selling houses they will be paying back assessments. <br /> Chairperson Steffen asked if they planned on preselling the lots. <br /> Mr. Bona stated they will have permanent sales centers for each type of product. They will <br /> presell as much as possible. They are seeing a really good market in the Twin Cities right now. <br /> Chairperson Steffen asked if Capstone has ever done a three hundred home project. <br /> Mr. Bona indicated Capstone has not but Capstone has completed projects in multiple phases. <br /> He noted he has experience in this type of master planned communities' project. <br /> Chairperson Steffen asked how many homes Capstone built in 2016. <br /> Mr. Bona indicated they built approximately 175 and closed around 150 and the target this year <br /> is to close 220 homes. <br /> Community Development Director Gladhill stated, from a planning perspective, Capstone has <br /> done a good job of managing the Brookfield project and staff is excited about this project <br /> because it is something different. <br /> Member Riley stated the Board has the MOU and alternative A of the 60/40 split. There is also <br /> alternative B which is a 50/50 split and he wondered how Mr. Bona felt about that alternative. <br /> Mr. Bona stated with their contribution that they are making to Bunker Lake Boulevard, with no <br /> frontage on Bunker Lake Boulevard, they feel like they are contributing more than their fair <br /> share to that. They have business parks on both sides of Bunker Lake Boulevard and they will <br /> achieve that value that will be built for the road and the arterial infrastructure at some point in the <br /> future. Even if they are not paying now or are paying a small share now, Capstone is not going <br /> to see any of that for their contribution made to Bunker Lake Boulevard. Those property owners <br /> will, and they need to remember that. He stated that is where they are making a contribution that <br /> Economic Development Authority/March 9,2017 <br /> Page 7 of 11 <br />