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Regular City Council Meeting Monday, February 23, 2015 Page 22 the property was put back on the market or what type of project resulted, it was important that the neighborhood be kept aware of future discussions and subse- quent actions. Mr. Trudgeon recommended that the City Council act as he pro- posed, and move forward to make that decision. Carolyn Olson, President of Greater Metropolitan Housing Corporation (GMHC) At the invitation of Mayor Roe, Ms. Olson advised that the prices for Phase II and III were something GMHC felt it could achieve; and once the townhomes were under construction and pre-marketing was underway, they anticipated once five were sold, the bank would be willing to move onto the next phase. Ms. Olson opined that the appraisal comparables were good and they could build to meet that market. Ms. Olson advised that the entire development team was available tonight for any questions or to provide additional information at the City Council's request, in- cluding the RE/MAX realtors chosen to market the project in all of its phases. Ms. Olson advised that the team felt they had worked hard on this project to-date, and though the appraisal came back low, it was found that Western Bank was not willing to initially fund Phases I and II as originally planned, GMHC was confi- dent the project could and should continue, and that it would be successful. Ms. Olson noted that GMHC had developed this unique and interesting plan at the City of Roseville's request, and had already invested $200,000 in the project to- date. Contrary to information provided by staff, Ms. Olson stated that GMHC had requested extension of the Preliminary Development Agreement, and had contin- ued to work in good faith with staff, and was now ready to move forward and draft a Development Agreement. Ms. Olson advised that the prices for Phase II and III were something GMHC felt it could achieve; and once the townhomes were under construction and pre- marketing was underway, they anticipated once five were sold, the bank would be willing to move onto the next phase. Ms. Olson opined that the appraisal compa- rables were good and they could build to meet that market. Ms. Olson noted that the project had gone off course in June of 2014 when the City and U. S. Bank could not come to an agreement on their mortgage interest and GMHC was forced to find another lender, and at staffs suggestion had met with community lenders, ultimately finding Western Bank interested in financing the project. Ms. Olson questioned if another developer might experience the same appraisal issues due to current comparables with other communities given new banking requirements. However, Ms. Olson opined that GMHC had provided everything requested to-date; and had shared in the frustration when the appraisal documents took from November of 2014 to January of 2015 to accomplish.