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<br />- <br /> <br />e <br /> <br />REQUEST FOR COUNCIL ACTION <br /> <br />DATE: 7-11-88 <br />ITEM NO.: ~ -:3 <br /> <br /> <br />Agenda Section: <br />Hearings <br /> <br />Manager Reviewed: <br /> <br />~ <br /> <br />Item Description: <br /> <br />Authorization to enter into development <br />agreement with Can-American. <br /> <br />Tax increnent is being proposed to write down the cost of land to <br />what is a proper markert value for multi-family development. With <br />respect to the housing &r.d the park, Can-Am 1s paying <br />$4,508,460.00. Fair market housing value tor th~ property would be <br />in the range of $3,500 dollars per unit or $1,123,500.00. Thus, a <br />reasonable tax increment request from the city would be in the range <br />0: $3,384,960.00. Can-Am, is actually roque sting $2,S50,~99.00. <br />This results in an actual per unit cost of $4,853.00. The reason <br />that Can-Am can afford to ~ay more per unit is basad on the fact <br />th.J,t it will be requesting higher rents and a joint venture on Lhe <br />retail compon~nt will create additional cash flow. A summary of the <br />Can-Am deal is attached. <br /> <br />counCIL ACTION REQUESTED: Motion to app~ove/deny authorization to <br />enter into development agreement with <br />Can-American. <br />