04-30-07 Item 7C, Contract Relating to Purchase and Development of TCAAP

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Hopkins, MN The Downtown area is the heart of Hopkins and Ehlers has played an extensive role in its redevelopment. The City's most recent achievement is the construction of Market Place Lofts, a mixed-use development consisting of 42 condos and 17,000 sq/ft of retail. Other downtown projects include the construction of the Hopkins Center for the Arts and a restaurant/theater complex. Ehlers evaluated options and assisted the City in the implementation of the facilities finance plan, as well as completed proforma analysis and negotiations of the development agreement. Since housing is an important part of the vitality of downtown Hopkins. EWers assisted the City with the redevelopment of a mobile home park into sixty-six town homes. This redevelopment had been a City goal for more than 15 years and was realized in 1996. The financing for the development included a complex mixture of five series of revenue bonds, general obligation tax increment bonds, and pay-as- you-go notes. Our first objective was to protect the City's long-term financial interests while at the same time providing an incentive to the developer of the project to build quality town homes and stay on budget for the project. Attesting to the success of the project are the sale of all housing units and the retirement of two of the bond issues County Road 3 Corridor Study. Ehlers' staff served on a multi-firm team that created a comprehensive plan for the reconstruction of County Road 3 and the redevelopment of the adjacent land uses. Ehlers conducted financial analysis to determine the feasibility of project alternatives. The finance plan created through the Corridor Study will allow the City to finance its share of the project without a complicated application of special assessments. In 1997, Ehlers implemented phase one of the plan with the issuance ofG.O. Tax Increment Bonds. Edina, MN Edina has long set the standard for quality redevelopment projects. The City's last redevelopment effort, Grandview Square, continued the trend. Ehlers assisted the City in the evaluation of development proposals for the key redevelopment site and created a financial model to create an "apples-to-apples" analysis for four different mixed-use development proposals. The analysis evaluated the critical elements of each proposal: property value created, timing of development, amount and form of city assistance, and flow of funds. EWers prepared detailed information for staff evaluation and summary profiles for City Council use. Following selection of a development team, Ehlers participated in the negotiation of a development agreement. EWers' financial analysis provided the information needed to set the form and amount of city assistance. The Grandview Square project resulted in 80,000 square feet of office and 150 units of owner-occupied housing. The project also contains a senior center and new county library. In previous years, Ehlers staff assisted Edina with the design and the implementation of the finance plan for the Centennial Lakes redevelopment area. Arden Hills Proposal for Resource Plan and Fiscal Impact Analysis TCAAP