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�� � REQUEST FOR COUNCIL ACTION Depa�ent _A ro��al � �� Item Description: Dale Street Development update PROJECT TIMELINE Date: August 17, 2015 Item No.: 15.c City Manager Approval On Apri16, 2015, the City of Roseville entered into a purchase agreement with the Roseville Housing and Redevelopment Authority in order to purchase the HRA's land that is contained in the Dale Street redevelopment project area that called for a closing by June 30, 2015. On May 11, 2015, the City of Roseville entered into a predevelopment agreement with the Greater Metropolitan Housing Corporation (GMHC) so that GMHC can purchase and develop the property. The City of Roseville contracted with an environmental �rm to perform a Phase 1 environmental analysis and the report has been reviewed by GMHC, Western Bank, City Staff and the City Attorney and been deemed to be sufficient for waiving the City's environmental contingency in the purchase agreement with the HRA. The City of Roseville has obtained updated title for the property that the City Attorney has deemed to be sufficient to waive the City's title contingency in the purchase agreement with the HRA. GMHC has received a written commitment from Western Bank for project financing. The financing commitment is a readvancing line of credit draw note in the amount of $1,461,000 with a maturity of 36 months. The commitment covers all 18 townhome units. The value of the units that are proposed was confirmed by the bank's appraiser and therefore it is comfortable funding the project. The initial 6 units will be funded without a presale requirement and then each of the additional two phases of 6 units will have a 50°/o presale requirement, which is a standard condition for townhome project financing. The bank has indicated that ifpresales go faster than anticipated, the bank will increase the amount available to the project so that it can move forward in a timely fashion and improve economies of scale. The intial pro forma and commitment were reviewed by the City's housing finance consulting firm, Ehlers and Associates. On June 22, 2015, the City Council approved an Interfund Loan Resolution to advance TIF funds for the closing on the HRA property in advance of the formal modifications of the TIF districts funding the development (TIF Districts 10 and 12). On June 24, 2015, the City closed on the property owned by the HRA. On July 20, 2015, the City Council set the date for the TIF public hearing and approved the preliminary plat for the development. Page 1 of 3