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Attachment B 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 confident 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 Rosevilles 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 continued 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 comparables 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. While asked repeatedly what was going on, Ms. Olson noted that GMHC was legally constrained in what information they could provide during the appraisal process itself. Ms. Olson expressed disappointment that, now that the appraisal was completed, the City was considering the decision to seek another developer for the project, when GMHC was now ready to move ahead and remained confident the project would be successful, and remained interested in continuing to work together toward that end. In conclusion, if the City Council decided not to move ahead with GMHC, Ms. Olson asked that at a minimum GMHC be reimbursed for their staff time and costs to-date on the projects development process. Ms. Olson asked that their real estate team be provided an opportunity to speak from their perspective in marketing the properties. RE/MAX Realtor Jason Stockwell; 5201 Eden Avenue, #100; Edina, MN Mr. Stockwell briefly reviewed his firms experience in this type of housing stock and sales history in other metropolitan communities. Mr. Stockwell opined that this development would be perfect for this site, and phasing seemed appropriate