2021-07-28 CC Packet - Laserfiche WebLink

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From:Carla Dunham To:Mark Statz Cc:David Pattberg Subject:Block 7 - PA Deal points - prep for 7/28 meeting Date:Thursday, July 22, 2021 1:55:28 PM Caution: This email originated outside our organization; please use caution. Hi Mark, We sincerely apologize we could not get back to you faster. In response to our discussion and our understanding of the concerns the Council has, please see below our proposal regarding how we can work together to alleviate those concerns. Unfortunately the concepts currently proposed by Council are not viable and would render us unable to finance the project. We do want to be transparent that in our negotiations to date, we have far exceeded our typical legal costs that we expect in transactions of this kind, so in an effort to control our budget we have not vetted these concepts yet with our lawyer. However, we view these issues as business points and want to confirm we're on a good track and getting at the root of the City's concerns first before we involve counsel. Issue #1 – 2 Phased Project and Right of Reverter Feedback received: The Council was in favor of a two phase project with conditions. The primary condition was to split Block 7 into separate parcels for each phase of the development. If the development went into default between the phases, the second phase could revert back to the City. Our Counter-Proposal: Phasing: To be clear, our intent has been and remains to plat the entire project in one plat. When we speak of "phasing" we are referring to the build order and would start with one building, then the next, etc starting at the Corner of Centerville road and finishing out buildings on Centerville first before moving to interior buildings. We would move from one building to the next as quickly as possible - in our process for attached TH product we typically move sequentially through each building. Right of Reverter: we can agree to Right of Reverter language and have done so in the past. Considering what a lender will accept based on our experience, we propose that the Right of Reverter remains in place until Centra Homes completes the upfront infrastructure improvements necessary* to allow for future building COs: Mass grading Utility svc installation: pipework - Sanitary, Sewer, Water Private street and public trail install, through 1st lift of asphalt *This protection is on top of the standard LOC that will be in place to cover the full scope of developer improvements that will be detailed out in the development agreement. Some improvements will need to be installed after buildings are vertical in order to protect the improvements during home construction (ex - landscaping).