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REDA Meeting <br /> Minutes—Tuesday,April 18,2017 <br /> Page 10 <br /> retained management and ownership or split portions of the development off in <br /> the future. <br /> Mr. Thelen advised that while past practice was to separate buildings and <br /> mortgages, of they twenty-four projects developed to-date in Minnesota, they <br /> own and operate all of them with the exception of one in Hutchinson, MN <br /> which is outside their immediate management area. Mr. Thelen noted that <br /> their first project developed in 1995 was still owned/operated by Sands; <br /> emphasizing their philosophy and commitment without intention to flip and <br /> sell projects. <br /> At the request of Member Willmus, Mr. Thelen clarified that the development <br /> would be titled as two separate entities, with one legal lot for sixty-six units <br /> and community and the two apartment buildings on a separate lot to record <br /> separate mortgages. <br /> At the request of Member McGehee, Mr. Thelen confirmed that each unit <br /> included one underground parking stall per unit. At the further request of <br /> Member McGehee, Mr. Sarver advised that the project followed the parking <br /> requirements of the city; with no ownership of the solar car ports. However, <br /> Mr. Thelen clarified that the covered stalls would be designated for residents <br /> first and signed accordingly for their advantage; with potential hook-up in the <br /> future for solar-powered vehicles. <br /> With Member McGehee reiterating her concerns with segregation of affordable <br /> and market rate units and her concern with proposed financing and opinion that <br /> it could be made to work to mix the units; Mr. Thelen addressed their history <br /> with other developments sharing amenities and recorded license agreement <br /> providing for long-term sharing of those assets by all units. Mr. Thelen noted <br /> that some amenities were related to affordable units and therefore, shared <br /> ongoing costs and operations. Specific to Member McGehee's comments that <br /> the financing could work by mixing affordable and market rate units in one <br /> building, Mr. Thelen encouraged her to provide ideas on how it could work. <br /> Member McGehee responded that she knew it was possible and that there were <br /> private lenders available and willing to fund such projects, using that housing <br /> mix as their compass. Member McGehee noted that the segregation by <br /> building was not mandated by state law but was simply a matter of a <br /> developer's willingness to balance that with their own financial desires; and <br /> encouraged the developer to think about it more. <br /> Member Laliberte commended the developer for putting the 66-unit affordable <br /> building as close to the community park as possible for use by families. <br /> At the request of President Roe, Ms. Collins confirmed that the action sought <br /> by the REDA tonight was to provide guidance for the conceptual project to <br />