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. On August 24, 20] 5, the City Council is scheduled to take action on the development agreement, <br />� the modifications to TIF Districts 10/12 and the Final Plat. <br />. BACKGROUND <br />.. The predevelopment activities for the Dale Street development are coming to a close. A series of <br />. final approvals are scheduled to occur at the City Council's August 24, 2015 meeting. Following <br />.. the August 24th meeting, the focus will quickly move towards setting up the closing on the <br />_ property with the developer and the initiation of construction. <br />s���: The City's TIF Attorney has prepared the attached draft development agreement (Attachment A). <br />��: It is currently scheduled that this agreement will come back for approval on the August 24th <br />� meeting. <br />�: Staff is bringing some of the key items forward in this work session to answer questions or <br />identify issues the City Council may have early on so they may be resolved prior to presenting <br />�: the cases for formal approval on August 24th <br />� The developer has received a commitment for financing of the entire project (Attachment B). <br />The bank's appraisal came through positively as well on the proposed units. As is common in <br />� this sort of a project, the bank's commitment is in a revolving loan format where additional funds <br />� are provided for future buildings as sales occur. The bank is confident enough in the project that <br />��� it is not requiring a presale requirement for the first six units and it has indicated that if sales <br />f occur faster than projected, the bank will increase the amount of funds available to the project to <br />�, accommodate a faster construction schedule. <br />�� Staff has also negotiated provisions to benefit the City if unanticipated changes occur in the <br />5�. project both in the positive and negative direction. If the project should go into default, there are <br />��� provisions for the City to obtain title to the property again. The City's interest would be <br />. subordinate to the bank's financial interest (which is a common condition for developments), but <br />_. the City would have a process available to it to eliminate the developer's ownership interest in <br />.. the event of a default and reclaim title to the property. <br />. If the project should succeed beyond projections, there is a provision for the City to share the <br />���� extra profits, thereby reducing the initial land and demolition TIF subsidy. <br />� Proposed draft elevations are also attached (Attachment C). The developer is working with the <br />c�� City Planner to develop the iinal elevations. Some of the final modifications that the developer <br />E�� is having prepared right now include the following: <br />r • Working with a designer to create cohesive color schemes for the project. The developer <br />�,� wants each unit to have some individuality but tie into the larger development as well. <br />• Architectural styles and color schemes for each building will be made consistent along all <br />���� four sides. For example, if a front porch design has shakes or boards and batten, these <br />t materials will be carried around the sides and back as well. <br />� • Homeowners will have a variety of front door styles to choose from but they will all tie <br />� into the overall theme. <br />• Muntins will be added to the windows for architectural interest. <br />: • Garage door styles will be tied into the styles for windows and doors. <br />r The developer has provided some sample photos of the types of product style/quality that <br />they are seeking for this development (Attachment D). <br />Page 2 of 3 <br />