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REQUEST FOR HRA ACTION <br />Date: 2-17-15 <br />Item No: 9b. <br />Staff Approval: Agenda Section: <br /> Action <br />Item Description: Dale Street Fire Station Site Redevelopment <br /> (HF_0117) <br />1 <br />2 1.0 Requested Action <br />3 Staff has brought forward three options for the RHRA Board’s consideration. <br />4 <br />5 2.0 Background <br />6 At the January 20, 2015, RHRA meeting, the RHRA Board gave Greater Metropolitan <br />7 Housing Corporation (GMHC) an extension to satisfy section 3 of the predevelopment <br />th <br />8 agreement dated the 19 of November 2013. GHMC was to get items 3a-e to staff by <br />9 February 9, 2015, and a Financing Letter to staff by February 13, 2015. GHMC did meet <br />10 both deadlines. <br />11 <br />12 HRA staff and the Community Development Director have been meeting with GMHC <br />13 and Western Bank on a regular basis to discuss the financing options that are available to <br />14 GMHC at this time since the project did not appraise for the amount needed by the lender <br />15 for collateral. <br />16 <br />17 Western Bank has provided a letter outlining the financing that they can commit to at this <br />18 time. Western Banks is able to finance the 6 one-level townhomes along Cope Avenue, <br />19 which currently owned by the RHRA. After the 6 townhomes are completed and the fire <br />20 station is removed, Western Bank believes that new construction will gain acceptance in <br />21 the marketplace and that an appraisal done at that stage will indicate whether financing <br />22 can be committed for Phase II (the single family homes). <br />23 <br />24 GHMC would defer its developer fee until Phase III is complete. GHMC’s proforma <br />25 shows that they will need gap financing from the RHRA/City to do Phase II. The <br />26 proforma shows that the gap financing would be paid back upon completion of Phase III. <br />27 <br />28 Based upon the proposed financing of the development in 3 phases with no firm <br />29 commitment that Phase II or III will secure financing, the RHRA Board needs to <br />30 determine if section 3.f. requiring satisfactory financial data to the Authority <br />31 demonstrates that the Developer’s ability to undertake the development has been met. <br />44A4 <br />33 Staff is suggesting 3 possible actions that the Board can take. <br />44A4 <br />RHRA_ Agenda (2-17-15) - Page 1 of 1 <br /> <br />