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HRA Special Session Item #: 6. 2. <br />Date: 12/14/2010 <br />By: Heidi Nelson <br />Administrative Services <br />Information <br />Title: <br />Adopt Purchase Agreement for The Residence at The COR - Lot 3, Block 1, COR ONE <br />Background: <br />The development team has been working with Flaherty and Collins, LLC of Indianapolis, Indiana since October <br />of 2009. <br />Flaherty and Collins is interested in developing transit oriented, upscale apartments in The COR adjacent to and <br />utilizing the existing parking structure. <br />In late April, Flaherty and Collins delivered an LOI which was considered by the team, summarized, and presented <br />to the HRA on April23rd, 2010, and again on October 19, 2010 where there was considerable discussion. <br />Direction was given by the HRA at the October 19th meeting to continue negotiations with the developer and <br />prepare the formal documents for consideration by both the City Council and the HRA. We have continued to work <br />with the developer to structure an agreement around those deal points. <br />For detailed information regarding the deal structure, please refer to the Ehlers Memo. For ease of review, the text <br />from the Ehler's memo is copied to the section below: <br />Memo <br />To: Kurt Ulrich — Executive Director <br />From: Stacie Kvilvang <br />Date: December 14, 2010 <br />Subject: COR Apartments - Development Proposal and Terms of Development Agreement and Other Obligations <br />Flaherty & Collins has submitted their concept for development of the COR Apartments which will consist of <br />approximately 216 market rate apartments, 14 market rate, rental town homes and approximately 3,000 sq ft of <br />retail. <br />Based upon the above referenced development program, following is a listing of the proposed business terms for the <br />Development Agreement and other obligations: <br />1. General <br />a. Developer. The Developer is F & C Ramsey, LLC, an Indiana limited liability company, which is a single asset <br />entity. <br />2. Purchase Agreement <br />a. General. The HRA currently owns the land and a Purchase Agreement between them and the Developer will be <br />executed contemporaneously with the execution of the Development Agreement. The HRA's obligation to sell is <br />contingent upon the Developer providing the HRA with reasonable acceptable evidence that they have obtained all <br />necessary governmental approvals to build the project and have obtained financing sufficient to finance 65% of the <br />construction costs. The Developer is obligated to purchase Lot 3, Block 1, COR ONE, for a purchase price of <br />