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Attachment A MEMORANDUM OF UNDERSTANDING SIENNA GREEN PHASE II PROJECT This Memorandum of Understanding is dated as of this day of , 2009 (the "Memorandum") and is entered into by and between the City of Roseville, Minnesota (the "City") and Aeon, a non-profit housing developer (the "Developer"). This Memorandum relates to a development more particularly described in Article 1 hereof (the "Project") to be constructed on the real property currently identified as the south 7 acres of the NE Quarter of the SE Quarter of the SE Quarter, Section 9, Township 29, Range 23, according to the Government Survey thereof and as parcel identification number 09-29-23-44- 0247 (the "Development Property"). It is the intent of the City and Developer (collectively, the "Parties") that this Memorandum will outline the general understanding of the Parties with respect to the acquisition, construction and financing of the Project, and will provide a framework for and will be superseded in its entirety by a final development agreement (the "Development Agreement") to be entered into by the Parties at a later date as contemplated in Article 3 hereof. Now therefore, the Parties hereby agree that the following sets forth an outline of their general understanding of the general plan for the development of the Proj ect and a framework of the matters to be covered in the Development Agreement. ARTICLE 1. DESCRIPTION OF THE PRO7ECT 1.01 Sienna Green Phase II(the "Project") will consist of the new construction of approximately 50 units of affordable rental housing. The approved site plan for the Project is attached hereto as Exhibit A. 1.02 The Developer expects that the construction of the Proj ect will commence in May, 2010, and will be substantially completed by April, 2011. ARTICLE 2. TAX 1NCREMENT FINANCING 2.01 On July 13, 2009, the City acted to create Tax Increment Financing District No. 18 (the "District"), which includes the parcel upon which the Project will be developed in accordance with Minnesota Statutes Section 469.174 through 469.1799. The City has submitted the required documentation to Ramsey County requesting certification of the district and to the Minnesota Department of Revenue and Office of the State Auditor. 2.02 Based on the assumptions detailed in the adopted Tax Increment Finance Plan, the District is expected to generate approximately $2,194,515 of tax increment over the maximum term of 26 years, which translates into a present value of approximately $934,481 using the September 2009 semi-annual long term Applicable Federal Rate (AFR) as the discount rate. The TIF Financing Plan set forward a budget not to exceed $913,610 for land/building acquisition. 2406226�2