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HRA Meeting Minutes – Tuesday, July 16, 2013 Page 3 1 company. Member Quam expressed her enthusiasm for Sherman Associates to do something 2 in Roseville; and questioned if their financing was in place to allow construction start in 2014. 3 4 Mr. Hughes advised that they were still doing due diligence at this time, and would most likely 5 contemplate a tax increment financing (TIF) request in the future. However, prior to 6 completing that due diligence for financing the project, Mr. Hughes advised that they sought to 7 air their concept initially with the HRA and City Council; and if supported, they anticipated a 8 TIF application coming forward in August of 2013. Mr. Hughes advised that HUD-insured 9 financing would be primary, and anticipated that it would take most of the winter to get 10 through the HUD approval process, with anticipated groundbreaking in late spring or early 11 summer of 2014. 12 13 At the request of Member Quam, Mr. Hughes advised that they anticipate Phase II commercial 14 space to be built to a single office/medical tenant with a build/design option unless the demand 15 for more retail uses seemed to be significant. 16 17 At the request of Member Quam, Mr. Hughes advised that Phases I and III were proposed as 18 four (4) stories each; however, he noted that Phase III would look like a five (5) story building 19 due to the pitch of the roof. 20 21 At the request of Member Quam, Mr. Hughes responded that they anticipated seeking some tax 22 credits for Phase III, proposing 80% market rate and 20% affordable housing units. 23 24 At the request of Member Quam, Mr. Hughes advised that typically, Sherman Associates 25 constructed, owned and managed all of their buildings. 26 27 For the benefit of the public and any potential misperceptions with the mention of HUD 28 financing for the project, Mr. Wilson noted that phenomenal buildings were still possible with 29 that type of funding much different than perceived in the past. 30 31 Mr. Hughes noted that everyone was cognizant that such financing was a necessary tool in 32 today’s market to credit-enhance the loan for such a project. 33 34 Ms. Kelsey noted that the HUD tool was frequently used to allow for longer term (e.g. 40 year) 35 loans; with Mr. Hughes concurring that it allowed for a 40-year amortization for longer term 36 and larger loans and required less subsidy. 37 38 At the request of Member Masche, Mr. Hughes advised that, while Sherman did not yet control 39 the site, they were working with Hagen, and were confident in the status of those negotiations 40 to appear before the HRA tonight. 41 42 Mr. Masche recognized the history of the Sherman company, specifically George Sherman, 43 and the immense amount of ideas and creativity with its projects; and expressed appreciation 44 that the legacy was continuing. 45 46 Mr. Hughes noted that Mr. Sherman continued to own and manage the company himself, and 47 saw great potential with this proposed project in Roseville. 48 49 9.Action/Discussion Items 50 51 a.Resolution of Support for Sherman and Associates DEED Application 52 53 Motion: Member Lee moved, seconded by Member Quam to recommend to the City of 54 Roseville to apply for DEED funds on behalf of Sherman Associates, Inc., for the 55 redevelopment of 2785 Fairview Avenue.