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Agenda Item 12.f Applewood TIF <br /> BRIGGS W2200 First National Bank Building <br /> 332 Minnesota Street <br /> St. Paul MN 55101 -1396 <br /> AND M O R G A N te1651.808.6600 <br /> fax 651.808.6450 <br /> MEMORANDUM <br /> VIA E -MAIL <br /> TO: Pat Trudgeon <br /> Chris Miller <br /> Jamie Radel <br /> FROM: Mary L. Ippel <br /> DATE: November 8, 2010 <br /> RE: Development Agreement between City of Roseville and United Properties <br /> Residential LLC <br /> It is proposed that the City of Roseville enter into a Development Agreement with United <br /> Properties Residential LLC (the "Developer") in connection with a housing project. <br /> Each time a Development Agreement is entered into the City should explore the <br /> appropriateness of including a look -back provision in the Development Agreement. The <br /> inclusion of a look -back provision is to determine at the completion of the construction of the <br /> project the actual cost of the project, projected rate of return to the developer and to analyze if <br /> the amount of the public assistance should be reduced. <br /> In connection with the Development Agreement with the Developer it was determined <br /> that a look -back provision not be incorporated into the Development Agreement for the <br /> following reasons: <br /> 1. Developer Receiving Public Assistance Only for Phase I. The Developer is <br /> receiving public finance assistance only for $569,000 of costs associated with the <br /> construction of 50 cooperative housing units "Phase 1 The Developer is not <br /> receiving any additional public assistance with respect to Phase 2 or 3. <br /> 2. Developer Not Obligated to Construct Phase 2 and Phase 3. In order for the <br /> Developer to be repaid the $569,000 associated with Phase 1, it is necessary that <br /> the Developer construct an additional 44 units of cooperative housing ("Phase 2 <br /> and a 93 unit assisted living facility "Phase 3"). If the Developer does not <br /> construct Phase II and Phase III, the Developer will not receive full <br /> reimbursement of the $569,000 plus interest at 7% on the unpaid balance. <br /> Briggs and Morgan, Professional Association <br /> -OVER- Minneapolis I St. Paul I www.briggs.com <br /> Member Lex Mundi, a Global Association of Independent Law Firms <br /> 2950792v1 <br />