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HRA Meeting Minutes –Tuesday, October 15, 2013 Page 6 1 bank, and owner equity available at over $2 million, and in their incorporation of some affordable units, 2 they would seek funding from Ramsey County for those units in the apartment building. 3 4 Mr. Nelson reviewed the Habitat homes designed with front-loaded garages in several available styles 5 as proposed on 60’ lots; with their financing through private fundraising, and/or sale of house 6 sponsorships; as well as leveraging in-kind materials and discounts from the trades as typical of their 7 projects to help lower costs. Mr. Nelson noted that, in general, there would be no labor costs for their 8 units. 9 10 At the request of Member Willmus, Mr. Nelson addressed their best case scenario for build-out of those 11 single-family homes, in conjunction with Sand Development of the site, anticipated for start of 12 construction in the fall of 2014, following their lead to build over several seasons, estimating two 13 homes per season, with final construction of those homes completed in 2016. 14 15 At the request of Ms. Kelsey, Mr. Thelan clarified that there would be 48 apartment units and 5 single- 16 family homes, for a total number of 53 units on the site; 44 at market rate; 4 home units at market rate 17 geared for the home funding portion; with a possibility of 48 available at market rate, depending on 18 final funding. 19 20 At the request of demolition fees and if and how they had addressed SAC, WAC, and park dedication 21 fees, Mr. Thelan advised that demolition costs and SAC, WAC, and park dedication fees were detailed 22 in their proposal. 23 24 Ms. Kelsey clarified, with confirmation by Mr. Thelan, that their firm was seeking a reduction in land 25 price, and TIF in the amount of $500,000. 26 27 At the request of Ms. Kelsey, Mr. Bork addressed their intent with good design to seek MN Green 28 Communities certification, using their checklist and saving money in the long haulfor the homes, 29 depending on final factors. 30 31 At the request of Ms. Kelsey, Mr. Thelan advised that they retained ownership in 19 of their 26 projects 32 to-date, with some of those projects including other partners as well. 33 34 At the request of Ms. Kelsey regarding a property management team in place for this project, as well as 35 their lease –up contingency, Mr. Thelan advised that this project would include a property manager 36 specific to the project; and include on-site maintenance upon completion. Mr. Thelan advised that, with 37 the extent of their holdings, they had engineers and on-call staff available at all times; and participated 38 in the Crime Free Multi-Family Housing program, and included a crime free lease addendum in all their 39 rental agreements. Ms. Thelan noted that their proformas included a layout of their lease-up schedule to 40 get to full occupancy; and didn’t anticipate any lease incentives being needed at this point. 41 42 At the request of Ms. Kelsey, Mr. Thelan advised that they did not include a developer fee or 43 percentage, as it was built into the apartment rental fees. 44 45 Regarding existing tree presentation and orientation of units on the site as requested by Ms. Kelsey, Mr. 46 Bork advised that most of the boulevard trees would hopefully be saved; and their intent for a 3 story 47 building was based in part on preserving as many trees as possible by reducing the building footprint 48 and to be more friendly to those neighbors on the back of the property. 49 50 Ms. Quam noted that the Development Agreement would include a right of reverter clause in the event 51 something went wrong with the project; and asked how problematic this would be in their firm seeking 52 conventional financing. 53 54 Clarifying that she was referring to during construction versus after completion, Mr. Thelan advised 55 that it could be problematic with a private bank, but would be dependent on actual language.