Laserfiche WebLink
<br />December 21,2007 <br /> <br /> <br />\I <br />,<( <br /> <br />c <br /> <br />Honorable Mary Capra, Mayor of The City of Center vi lIe <br />City of Cellterville <br />City Hall <br />1880 Main Street <br />Cel1terville, MN 55038-9794 <br /> <br />Dear Mayor Capra: <br /> <br />The Beard Group, Inc. would like to thank you for allowing us to present all update on the <br />dOVvntO\Vl1 redevelopment status at the City Council \\Tork-session on December 26th 2007. <br /> <br />The purpose of this letter is to update you on the Ctlrrent status of the project, as \ve will review <br />in the work-session. For Phase I, two significaIlt changes have occurred: <br /> <br />First, there have been significant changes in the residentialllousing nlarket that have forced us to <br />re-evaluate the timing and structure as part of Phase I. The Beard Group, Inc. has been working <br />witll Centex Homes on the area oftownhome development (east of Progress Road), and with the <br />current downtunl ill the housing market Centex has re-evaluated the price they are willing to pay <br />per fillished townllolne lot. The original underwriting contemplated a per townhome lot price of <br />$60,000.00. Cun.elltly, Centex \vill pay $35,000.00 per towIlhome lot. This represents Inore than <br />a 40% decrease in price per townhome lot. The Beard Group, Inc. is considering reducing the <br />area of townhonles within Phase I - linliting the townhonle developnlent area to tllose areas that <br />have the most affordable acquisition costs in relation to density. Tllis could potentially n1ake it <br />financially feasible to start \vitll some towl1homes as pm1 of Phase I by the fall of 2008. <br /> <br />Second, is in regard to the timing of tIle proposed apartmellt developlllent (Chateau Goiffon <br />Apartlnents). The Beard Group, Inc. applied to Mil1nesota Housing Finance Agency (MHFA) for <br />an allocatioll of Tax Credits as part oft11c fillat1Cing structure. The application process for Tax <br />Credits is extrelnely competitive. The a\vards were announced in October of 2007 and <br />unf011unately the proposed Chateau Goiffon Apartnlents were not selected. The Beard Group, <br />along ,vitIl JohtlMeyer of The City ofCenterville, 11a5 subsequently met witll MJIFA to review <br />the applicatiol1 and selection process. MHF A is very supportive of the proposed apart111ent, <br />provided many suggestions as to how to improve the scoring of the application and has strongly <br />encouraged the Beard Group to re-apply in the 2008 applicatiol1 process. We are confident that <br />Cllateau Goiffon Apartlllents \\111 be a successful affordable housing option as part of the <br />Centerville Downto~rn redevelopmellt; however this setback means 111at tlle develop111ent of <br />these apartments needs to be extended one year. <br /> <br />The Beard Group, Inc. is still very excited about the opportunity to redevelop downtown <br />Centerville. The proposed development will provide a unique, mixed-use downtown consisting <br />of COnl111ercial, retail, for-sale townhomes, and senior housing options along ,vith an affordable <br />housillg option for residents of Centerville. The Beard Group looks forvvard to giving the City <br />Coun.cil a Inore detailed sumn1ary on December 26th. <br /> <br />7.:-;~() SC'('OIH 1 St It't'l >..J':~. Su il!."> l (JlJ · llnrd\ jll~< .\1 N ,)S,:~"l-.'~ - {('X:):]l (r:~()-(H,)3C) · r:i1:~ (:l.-":;!, ~>:Hi.LH >:,'t I <br />