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December 14, 2010 districts. The developer will provide a minimum of$4 million in cash equity. The total development cost is $19.4 million, about $156,000 per unit. The anticipated tax value is between $110,000 and $115,000 per unit The City will be receiving park dedication funds up fiorn. A look-bacicprovision is included in the agreement ' Ifthe property is sold before 2022, the developer would be required to complete and internal rate ofretrun analysis. If thelRR is greater than 16%, then anything above this amount would be spared 50/50 with the City. The developer has requested the exclusive right to develop Block G (the adjacent block) with the following conditions: (1) A Market Feasr7rilityRgxxt to be delivered by January 1, 2013. (2) Provide apreliminary plan forproposed development by June 30, 2013. (3) Must submit a final plan approval, execute apurchase agreerrnent and have permits and financing guaranteed by December 31, 2013. The Enhanced Services Cost Sharing Agreement was explained The City has requested the developer and the benefiting residents assist with the costs associated with the maintenance costs in the immediate area. The Public Worka/F_n_ginecri ng staff is preparing an estimate. The Subordination issue will come before the Council in January. The developer's lender will want the City to subordinate it's agreement to a first mortgage, Director Femelius explained this is a common issue. The city will need to negotiate acceptable language by the January 11, 2011 council meeting. The schedule was reviewed: December 21, 2010 Planning Commission will review the land use January 11, 2011 City Council will consider Land Use March 2011 ConshvdionPlanreview June 15, 2011 Closing Date June30,2011 Deadline for construction to begin December 15, 2011 Disbursement ofranaining cash assistance Decenber31,2012 Completion Date Decenber 31, 2013 Development rights to block Gmust be exercised 'Director Femehus stated this has been a lergthypocess, and is pleased with the quality of the building, and believes the project will benefit the Northwest Quadrat in a variety ofways. CounalmenberPhillips exprssed his gratitude to City Staffand Stuart Companies for the work on the coriftn , and was pleased to seethe modification in the payment terms. Councihnembe Samuelson questioned ifthe length oftime between the gourd x-ealmg and completion is typical. DirectorFenelius noted it will take that long to complete the building and the 120+units. Coumcihmenber Bauman also acpressed appreciation for the change in the payment terns and questioned the language on page 10 ofthe ageen=4 relating to the conveyance. George Hoff(legal counsel) explained this is typical real estate closing language. CoundhnanberBauman coimnented that this project looks to be diffeert from other apartrne is in the City, as it appears to be higher ed, bort still has concern with over 30% apartments in the City. Councahnerrbe Bauman asked Mr. Nolan if they bend to have more long -tarn residents in their current properties, and ifthere are plans forparcel G? Mr. Nolan stated they have avested interest in what would bein dose proximity to their project, and for that reason they would like the opportunity to develop block G. Mr. Nolan reported they don't like turnover either, and generally higher end rental housing tends to have more long term residents. CounuilmemberBauman reported she was hopeful that this project will be a first step to additional development. Councihnanber Baumann questioned the valuation process, and why there's not ammimum Mr. Nolan reported he hopes to be fairly assessed with other comparable properties in the Twin City area Mayor Jacobsen noted this is an exciting project, and it is good to see progress in the Northwest Quadrant. Also the Mayor noted a high end property will beunique to the area. Mayor Jacobsen commented he was impressed with Mr. Nolan's confidence as he has giver the project his personal guarantee. Motion by Couna7member Phillips, seconded by Counc7member Burg to adopt the attached resolution authorizing the Mayor and City Manager to execute a Development Agreement by and between the City of New Brighton and The View at Long Lake, LLC. Page 4 of